Senate Approves $170B Republican Spending Bill; Senate Removes Provision Preventing States from Regulating AI
Key Takeaways
- Senate approved $170B Republican spending bill focused on immigration enforcement and border security.
- Senate removed provision preventing states from regulating AI, allowing state-level AI regulation.
- Senate advances domestic policy package cutting Medicaid, extending tax cuts, adding $3T to debt.
- Trump sues Maryland judges over immigration ruling granting deportation stays for habeas corpus petitions.
- House Republicans are divided over Trump's policy bill, slowing progress in the House.
Top Stories
Senate approves $170B Republican spending bill, including immigration enforcement.
In July 2025, the US Senate approved the One Big Beautiful Bill Act, a Republican spending bill allocating approximately $170 billion, with significant funds directed towards immigration enforcement, including the border wall, detention, and ICE. The bill, which also introduces fees for asylum applications and work permits, now moves to the House of Representatives.
Senate removes provision preventing states from regulating AI.
On July 1, 2025, the U.S. Senate removed a provision from a bill that would have prevented states from regulating AI, allowing states to continue regulating AI without federal interference. The amendment, co-sponsored by Senators Maria Cantwell and Marsha Blackburn, now returns to the U.S. House of Representatives.
Senate's domestic policy package: Tax cuts, Medicaid cuts, and debt increase.
On July 1, 2025, a Senate Republican domestic policy package was advanced, potentially harming low-income Americans while favoring the wealthy, and including cuts to Medicaid to offset tax cuts. The bill, which could add $3 trillion to the federal debt by 2034, mandates some Medicaid recipients work or volunteer at least 80 hours a month.
Trump sues judges over immigration ruling.
On July 1, 2025, Donald Trump sued Chief Judge George Russell III and other Maryland judges over an immigration ruling, targeting a standing administrative order by Judge Russell that automatically grants a two-day stay of deportation to detainees filing habeas corpus petitions.
House Republicans divided over Trump's policy bill.
Divisions within the Republican Party slowed progress on President Trump's policy bill, with House Republican hard-liners threatening to withhold votes on Speaker Mike Johnson's procedural measure. The White House and Speaker Mike Johnson are working to unite House Republicans behind the bill, which would slash taxes and the federal safety net.
Capitol Hill Buzz
Senate debates Trump's tax and spending package, Republicans struggle.
On June 30, 2025, the US Senate was in a chaotic session debating President Trump's tax and spending package, with Republicans struggling to resolve internal disagreements. The session aimed to extend tax cuts during a tense overnight session, with Treasury Secretary Scott Bessent expressing confidence in the bill's passage.
House Democrats advance bill on ICE agent anonymity.
House Democrats are advancing legislation to prohibit ICE agents from wearing masks during immigration enforcement, requiring agents to display clear identification, with exceptions for safety threats.
Election Spotlight
Trump attacks NYC mayoral nominee Zohran Mamdani.
Donald Trump is attacking NYC mayoral nominee Zohran Mamdani, a democratic socialist, over his socialist views and pro-Palestinian stance, threatening to arrest Mamdani if he wins the election. Mamdani, a New York state assembly member, has been a critic of Israel.
Former Navy SEAL Matt Maasdam to challenge Tom Barrett.
On July 1, 2025, Matt Maasdam, a former Navy SEAL and former military aide to Barack Obama, announced his campaign to challenge Republican Tom Barrett in Michigan's 7th Congressional District. Maasdam is emphasizing his military experience.
Carville: Trump may rig 2026 midterms.
On July 2, 2025, James Carville voiced concerns about Donald Trump potentially rigging the 2026 midterm elections to prevent a Democratic majority in Congress, emphasizing his worry about Trump's actions to maintain control.
Legal Frontlines
16 states sue over cuts to school mental health funding.
Sixteen states, including New York, are suing the U.S. Department of Education over $1 billion in cuts to school mental health funding, challenging the cancellation of grants under the Mental Health Service Professional Demonstration Grant Program and the School-Based Mental Health Services Grant Program.
Money and Politics
Senators question Paramount's settlement with Trump.
Senators Elizabeth Warren and Ed Markey are questioning Paramount Global's $16 million settlement with Donald Trump following a lawsuit related to a '60 Minutes' interview with Kamala Harris. The settlement, which will allocate funds to Trump's presidential library and legal fees, has raised concerns about potential bribery.
Policy Landscape
Trump visits detention center, faces criticism over immigration enforcement.
On July 1, 2025, Donald Trump visited the 'Alligator Alcatraz' detention center in Florida, drawing criticism from Democrats and human rights organizations. Florida State Rep. Angie Nixon claimed Trump is building "modern-day concentration camps" following the opening of the 5,000-person migrant detention facility.
Trump administration withheld federal grants from schools.
The Trump administration withheld billions in federal grants from schools, impacting programs like after-school, English language instruction, and adult literacy, accusing states of misusing funds for a 'radical leftwing agenda'.
Public Pulse
Poll: Americans disapprove of ICE's actions and Trump's handling of immigration.
A poll published on July 1, 2025, reveals that 54% of Americans and 83% of Democrats believe ICE's actions have “gone too far,” with 56% of voters disapproving of ICE's job performance and 52% disapproving of Donald Trump's handling of immigration.
White House Watch
Declassified CIA report challenges Russia interference claims.
A declassified CIA report, released on July 2, 2025, challenges the intelligence agencies' conclusion that Russia interfered in the 2016 election to help Donald Trump, citing procedural violations and political motivation. The report does not directly contradict previous intelligence conclusions.