Dow Rises 400 Points After Senate Passes Trump Tax Bill with VP Vance’s Tie-Breaking Vote

NEW YORK – U.S. stocks ended Tuesday on a mixed note, but the Dow Jones Industrial Average jumped 400 points after the Senate narrowly passed President Donald Trump’s major tax bill. The deciding vote came from Vice President J.D. Vance, who broke a 50-50 tie in the Senate late Monday night.

The bill, which includes large corporate tax cuts and changes to federal spending, still needs approval from the House of Representatives. Lawmakers are aiming to send it to the president’s desk by July 4.

The legislation would lower the corporate tax rate from 21% to 15% and provide temporary tax credits to individuals. However, it also includes significant cuts to Medicaid and food assistance programs. These spending cuts have drawn strong opposition from Democrats and some moderate Republicans.

“This bill is a big win for business, but it raises real concerns about how it impacts low-income families,” said Karen Liu, chief analyst at Wellsbridge Financial. “Markets are responding to the potential for stronger corporate profits, but the social and budget effects remain uncertain.”

While the Dow rallied on hopes of business-friendly policies, the broader S&P 500 closed flat, and the Nasdaq fell 0.7%, as investors weighed the risks of the bill’s long-term impact.

Vice President Vance called his tie-breaking vote “a step toward restoring economic strength,” while critics argued the bill favors corporations and the wealthy. According to the Congressional Budget Office, the legislation could increase the federal deficit by $1.6 trillion over the next 10 years.

The bill now moves to the House, where it faces a tougher path. Some Republicans from swing districts have expressed concern over the bill’s spending cuts and long-term fiscal effects.

House Speaker Elise Stefanik said she hopes to bring the bill to a vote before the July 4 deadline. President Trump, calling the bill a “historic step forward”, urged lawmakers to move quickly.

As Congress races to finalize the legislation, the next few days will be crucial. The outcome could shape the direction of U.S. economic policy for years to come and determine how voters respond in the next election cycle.