Please ensure Javascript is enabled for purposes of website accessibility

Del Monte, the 139-year-old canned fruits and vegetables company, seeks bankruptcy protection

Summary

  • Del Monte Foods files for protection.
  • 139-year-old brand hit by falling sales.
  • U.S. consumers shifting to fresher, lower-cost options.
  • Company plans to sell assets as part of restructuring

Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as U.S. consumers increasingly bypass its products for healthier or cheaper options.

Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the progresses.

“After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods,” CEO Greg Longstreet said in a statement.

Del Monte Foods, based in Walnut Creek, California, also owns the Contadina tomato brand, and Kitchen Basics broth brands and the bubble tea brand.

The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte’s signature canned products.

“Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,” said Sarah Foss, global head of and restructuring at Debtwire, a financial consultancy.

Grocery  also caused consumers to seek out cheaper store brands. And Donald ‘s 50% tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans.

Del Monte Foods, which is owned by Singapore’s Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company’s debt restructuring plan. The case was settled in May with a loan that increased Del Monte’s interest expenses by $4 million annually, according to a company statement.

Del Monte said late Thursday that the bankruptcy filing is part of a planned sale of company’s assets.

Analysis shows Trump’s tariffs would cost US employers $82.3 billion

Summary

  • Trump says Vietnam will pay 20% on U.S.-bound exports.
  • Transshipped goods, often from China, to face 40% tariffs.
  • U.S. gains “total access” to Vietnamese market under new deal.
  • Announcement comes amid broader tariff hikes from Trump.
  • : $82.3B projected cost to key U.S. employers.
  • Companies may offset costs via price hikes, or freezes.

(AP) — An analysis finds a critical group of U.S. employers would face a direct cost of $82.3 billion from Donald Trump’s current tariff plans, a sum that could potentially be managed through price hikes, layoffs, hiring freezes or lower profit margins.

The analysis by the JPMorganChase Institute is among the first to measure the direct costs created by the import taxes on businesses with $10 million to $1 billion in annual revenue, a category including roughly a third of private-sector U.S. workers. These companies are more dependent than other businesses on imports from China, India and Thailand — and the retail and wholesale sectors would be especially vulnerable to the import taxes being levied by the president.

The findings show clear trade-offs from Trump’s import taxes, contradicting his claims foreign manufacturers would absorb the costs of the tariffs instead of U.S. companies that rely on imports. While the tariffs launched under Trump have yet to boost overall , large companies such as Amazon, Costco, Walmart and Williams-Sonoma delayed the potential reckoning by building up their inventories before the taxes could be imposed.

The analysis comes just ahead of the July 9 deadline by Trump to formally set the tariff rates on goods from dozens of countries. Trump imposed that deadline after the financial markets panicked in response to his April tariff announcements, prompting him to schedule a 90-day negotiating period when most imports faced a 10% baseline tariff. China, Mexico and Canada face higher rates, and there are separate 50% tariffs on steel and aluminum.

Had the initial April 2 tariffs stayed in place, the companies in the JPMorganChase Institute analysis would’ve faced additional direct costs of $187.6 billion. Under the current rates, the $82.3 billion would be equivalent on average to $2,080 per employee, or 3.1% of the average annual payroll. Those averages include firms that don’t import goods and those that do.

Asked Tuesday how trade talks are faring, Trump said simply: “Everything’s going well.”

The president has indicated he’ll set tariff rates given the logistical challenge of negotiating with so many nations. As the 90-day period comes to a close, only the United Kingdom has signed a trade framework with the . Trump announced Wednesday he’d reached a deal with Vietnam, while India has signaled it’s close to agreeing on a trade framework.

Trump said on his social media site Vietnam will pay the U.S. a 20% tariff on all goods sent “into our Territory” and a 40% tariff on any , which usually means exports that come from China but pass through Vietnam to dodge tariffs on Chinese goods.

In return, Vietnam will grant the U.S. “TOTAL ACCESS” to its market for trade, Trump said, meaning “we will be able to sell our product into Vietnam at ZERO Tariff.” He added he thinks SUVs “will be a wonderful addition to the various product lines within Vietnam.”

There’s a growing body of evidence suggesting more inflation could surface. The investment bank Goldman Sachs said in a report it expects companies to pass 60% of their tariff costs onto consumers. The Atlanta has used its survey of businesses’ inflation expectations to say companies could on average pass along roughly half their costs from a 10% tariff or a 25% tariff without reducing consumer demand.

The JPMorganChase Institute findings suggest the tariffs could cause some domestic manufacturers to strengthen their roles as suppliers of goods. But it noted companies need to plan for a range of possible outcomes and wholesalers and retailers already operate on such low profit margins they might need to spread the tariffs’ costs to their customers.

The outlook for tariffs remains highly uncertain. Trump had stopped negotiations with Canada, only to restart them after the country dropped its plan to tax digital services. He similarly on Monday threatened more tariffs on Japan unless it buys more rice from the U.S.

Treasury Secretary Scott Bessent said on Fox News Channel’s “Fox & Friends” on Tuesday the concessions from the trade talks have impressed career officials at the Office of the U.S. Trade Representative and other agencies.

The treasury secretary said the Trump administration plans to discuss the contours of trade deals next week, prioritizing the tax cuts package passed on Tuesday by the Republican majority in the Senate. Trump has set a Friday deadline for passage of the multitrillion-dollar package, the costs of which the president hopes to offset with tariff revenues.

Microsoft Begins Second Round of Mass Layoffs

Summary

  • issues new round of affecting thousands.
  • Fewer than 4% of last year’s workforce impacted.
  • Cuts span global teams, including and sales divisions.
  • Follows a prior round of mass layoffs in recent months.
  • Microsoft has not disclosed exact number of jobs cut.

REDMOND, Wash. (AP) — Microsoft is firing thousands of workers, its second mass layoff in months.

The tech giant began sending out layoff notices Wednesday.

The company declined to say how many would be laid off but said that it will comprise less than 4% of the workforce it had a year ago.

Microsoft said the cuts will affect multiple teams around the world, including its and its Xbox video game business.

“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” it said in a statement.

Microsoft employed 228,000 full-time workers as of last June, the last time it reported its annual headcount. The company said Wednesday that its latest layoffs would cut close to 4% of that workforce, which would be about 9,000 people. But it has already had at least three layoffs this year.

Until now, at least, the biggest was in May, when Microsoft began laying off about 6,000 workers, nearly 3% of its global workforce and its largest in more than two years as the company spent heavily on artificial intelligence.

Microsoft also cut another 300 workers based out of its Redmond, headquarters in June, on top of nearly 2,000 who lost their jobs in the Puget Sound region in May, according to notices it sent to Washington state employment officials.

The May layoffs were heavily focused on people in software engineering and product management roles.

Stocks drift as Wall Street awaits key jobs report

Summary

  • S&P 500 rose 0.1% after Tuesday’s small loss.
  • Nasdaq gained 0.5%; Dow fell 131 points.
  • Markets await Thursday’s .
  • Mixed reflect rate-cut uncertainty.
  • Weak job data could push Fed to cut interest rates.

NEW YORK (AP) — U.S. stocks are drifting on Wednesday, as Wall Street’s record-breaking rally slows ahead of a highly anticipated report coming Thursday about the .

The S&P 500 was edging up by 0.1% in morning trading, coming off its first loss after hitting all-time highs in back-to-back days. The Industrial Average was down 131 points, or 0.3%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was 0.5% higher.

Treasury yields were mixed in the bond market ahead of Thursday’s report, which will show how many jobs U.S. employers created and destroyed last month. The widespread expectation is that they hired more than they fired but that the pace of hiring slowed from May.

A stunningly weak report released Wednesday morning, though, raised worries that Thursday’s report may fall short. The data from ADP suggested that U.S. employers outside the government cut 33,000 jobs from their payrolls last month, when economists were expecting to see growth of 115,000 jobs.

“Though continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,” according to Nela Richardson, chief economist at ADP.

The ADP report does not have a perfect track record predicting what the U.S. government’s more comprehensive jobs report will say each month. That preserves some hope that Thursday’s data could be more encouraging. But a fear has been that uncertainty around President Donald Trump’s  could cause employers to freeze their hiring.

Many of Trump’s stiff proposed taxes on imports are currently on pause, and they’re scheduled to kick into effect in about a week. Depending on how big they are, they could hurt the economy and worsen inflation. Even if they’re not that punishing, all the on-and-off uncertainty about tariffs leading up to this point could cause damage by itself.

Other factors could also be dragging on the job market, such as the U.S. government’s termination of protected status for 350,000 Venezuelans, potentially exposing them to deportation. That alone could create a drag on payrolls of 25,000 jobs, according to Goldman Sachs economist David Mericle, whose forecast for Thursday’s report is weaker than many of his peers.

In the bond market, the yield on the 10-year Treasury rose to 4.29% from 4.26%. But the two-year Treasury yield, which more closely tracks expectations for what the will do with its overnight interest rate, dipped to 3.76% from 3.78%.

An unexpected weakening of the job market could push the Fed to cut interest rates, which would give the economy a boost. So far this year, the Fed has said it would rather wait to see how Trump’s tariffs affect the economy and inflation before cutting rates any further.

Trump, meanwhile, has been angrily calling for cuts to rates to happen sooner.

On Wall Street, Tesla rose 3.1% after the -vehicle company said it delivered nearly 374,000 of its Model 3 and Model Y automobiles last quarter. That was better than analysts expected, according to FactSet, though its overall sales fell sharply from a year earlier. Worries have been high that potential Tesla buyers are getting turned off by CEO Elon Musk’s involvement in .

Constellation Brands climbed 2% despite reporting a weaker profit for the latest quarter than analysts expected. The seller of Modelo beer and Robert Mondavi wine said that growth in jobs slowed during the quarter for the construction industry and other “4000 calorie+” sectors, which tends to hurt demand for its beer. But it nevertheless stuck with its financial forecasts for the full upcoming year.

Centene tumbled 38.1% after the health care company withdrew its forecasts for profit this year after an initial look at some data suggested sickness trends in many of the states where it does business are worse than expected.

In stock markets abroad, indexes were mixed as the July 9 deadline approaches for many of Trump and other countries to make trade deals before Trump’s tariffs come off their pause.

France’s CAC 40 rose 0.8%, and Hong Kong’s Hang Seng gained 0.6%. But Japan’s Nikkei 225 fell 0.6%, and South Korea’s Kospi dropped 0.5%.

___

AP Writers Teresa Cerojano and Matt Ott contributed.

Dominion promotes Baine to EVP of utility operations

Richmond-based on Tuesday announced several changes to its .

Edward H. “Ed” Baine is being promoted to of utility operations for Dominion Energy, while also retaining his current role and title overseeing operations in Virginia. The promotion will take effect on July 1.

Baine was promoted to president of Dominion Energy Virginia in 2020. Since January, he has led utility operations for Dominion Energy Virginia and Dominion Energy South Carolina, together serving more than 4 million customer accounts.

Baine will continue reporting to Dominion Energy Chair, President and CEO Robert Blue, who described Baine in a statement as a “valued leader. His promotion reflects that strong leadership and his unwavering commitment to safety and reliability, and to the company’s various stakeholders.”

Baine first started out at Dominion as an intern while still a student at Virginia Tech. He joined the utility full-time in 1995 as an associate engineer after earning a bachelor’s degree in electrical engineering. Over the past three decades, he has held numerous engineering, operational and management positions.

Dominion also announced that Senior Vice President, Controller and Chief Accounting Officer Michele L. Cardiff will retire on Oct. 1. Cardiff, who has been with the company since 1996 and in her current position since 2020, is responsible for Dominion Energy’s accounting and tax functions.

Gary G. Ratliff will succeed Cardiff, reporting to Steven D. Ridge, executive vice president and chief financial officer.

“Michele is a talented CAO who has demonstrated candor and transparency in our accounting practices and filings for nearly three decades,” Blue said in a statement. “We’ll miss her unique abilities and keen intellect. At the same time, Gary brings to the role high quality leadership, dedication to our core values and mission, technical mastery across a variety of accounting roles, and a strategic mindset.

Ratliff joined Dominion Energy in 2008 as a lead accountant and has managed accounting for Dominion Energy’s unregulated natural gas and businesses, corporate accounting and fixed asset accounting. Ratliff was promoted to controller in early 2024 and to vice president of accounting on April 1.

Headquartered in , Dominion Energy provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina.

Virginia senators seek injunction against seating 8 rejected BOV appointees

Summary

  • Virginia senators file for injunction to prevent eight rejected appointees from joining three university boards
  • They ask for July 18 hearing, before U.Va., George Mason, VMI boards meet next
  • Controversy stems from Senate committee vote on appointees

Nine Democratic state senators are asking a Fairfax County circuit judge to fast-track a preliminary injunction that would prevent three Virginia universities from installing rejected board of visitor appointees, the latest salvo in the senators’ war with the Youngkin administration.

On Tuesday, attorneys representing Virginia state senators filed a motion for a preliminary injunction against Rector Charles Stimson, Rector Rachel W. Sheridan and Thomas E. Gottwald, who was previously of ‘s board, from recognizing eight whom Republican Gov. Glenn Youngkin appointed to the three schools’ boards but were rejected in June by a Senate committee.

On June 24, the senators — eight of whom voted not to confirm the appointees, as well as Senate President Pro Tempore L. Louise Lucas — sued the three universities’ board leaders over what they called Youngkin’s attempted “nullification” of the committee’s vote.

The governor and the executive branch, the says, “have refused to recognize the rejection of those appointments by a coequal branch of government, in open defiance of the Constitution of Virginia and 50 years of tradition in the Commonwealth.” Youngkin dismissed the lawsuit as “meritless” last week in a Q&A period with reporters.

Tuesday’s filings by Mark T. Stancil of Willkie Farr & Gallagher for the plaintiffs include a letter to Judge David A. Oblon to request a hearing on July 18 “or as soon as possible thereafter prior to July 31” to address the preliminary injunction. The letter notes that George Mason’s board plans to meet for its annual planning conference July 31, with its annual meeting scheduled the following day, Aug. 1.

The injunction calls for Stimson, Gottwald and Sheridan to be prohibited from recognizing the appointments of the eight people rejected by the Senate committee.

They include former Virginia Attorney General Kenneth Cuccinelli, who was named to U.Va.’s board, and former Virginia Secretary of Commerce and Trade Caren Merrick, appointed this spring to George Mason’s board. The others include VMI appointees Jonathan Hartsock, Stephen Reardon and José J. Suárez; and Mason appointees Charles J. Cooper, William D. Hansen and Maureen Ohlhausen.

Sheridan replaced former U.Va. rector Robert Hardie in Tuesday’s filings, as she succeeded Hardie as the head of the university’s board July 1. According to a VMI spokesperson, Gottwald’s term as the head of VMI’s board was set to end June 30, and retired Col. James P. “Jamie” Inman was set to succeed him as board president July 1, so it is likely that Gottwald will be replaced by Inman in the lawsuit.

Stancil’s letter to the judge requesting a July 18 hearing notes that the defendants have not yet filed a response to the lawsuit, but the plaintiffs expect the three rectors to be represented by Virginia , who has already weighed in on the matter.

Miyares and Senate Majority Leader Scott Surovell, D-Fairfax, sent dueling letters to the three universities’ rectors following the 8-4 party line Senate committee vote, with Miyares arguing that the rejection of the appointees was not valid because the entire General Assembly had not voted on the appointments. Thus, the eight appointees remain board members “with the rights and responsibilities conferred upon a member of a board of visitors,” Miyares wrote.

Surovell, also an attorney, wrote that the rejected appointees are no longer members of their boards following the June 9 vote, and if the boards’ rectors were to recognize them as board of visitors members, “such conduct would constitute ‘malfeasance and incompetence’ … and would provide grounds for removal.”

The power of universities’ boards of visitors and the governor, who can make appointments and remove board members for cause, was in plain view last week as U.Va. President Jim Ryan resigned under pressure from the U.S. Department of Justice over diversity, equity and inclusion programs at the university.

Many of Ryan’s supporters, including elected state Democrats, criticized the Trump administration and Youngkin for what they viewed as overreach and an attempt to control Virginia’s public universities, with federal funding threatened. Some went further, saying that Youngkin’s appointees to the U.Va. board did not defend Ryan while he faced demands from DOJ officials to step down.

Democratic gubernatorial nominee Abigail Spanberger said in a statement Friday that if elected, she would “take decisive steps to ensure that all of our commonwealth’s boards of visitors are composed of individuals committed to the mission of serving and strengthening our public colleges and universities.”

As of Tuesday, U.Va.’s board is entirely made up of Youngkin appointees, who are expected to name an interim president shortly.

On Monday, outgoing U.Va. rector Hardie and incoming rector Sheridan announced that Jennifer “J.J.” Wagner Davis, the university’s executive vice president and chief operating officer, will be U.Va.’s acting president until the board names a longer-term interim president to serve until a permanent hire is made following a national search.

VMI’s board, meanwhile, is leading a national search for the replacement for former superintendent and retired Army Gen. Cedric T. Wins, whose ousting as the school’s first Black superintendent in February has been met with controversy as well.

Virginia’s public university boards have the primary duties of hiring and firing presidents and setting tuition, although they have significant influence over architectural decisions and capital spending, as well as university-based health systems’ operations.

FBI to stay in D.C., will move from Hoover to Reagan buildings

SUMMARY:

  • FBI’s move from one building to another means agency will stay in ,
  • Previously, agency was set to move to Maryland, but called it off.
  • Virginia’s senators criticize decision as a “punt.”

The FBI will move its headquarters from the J. Edgar Hoover Building to the Ronald Reagan Building, a decision that keeps the federal law enforcement agency in Washington, D.C.

Announced Tuesday by the FBI and the U.S. General Services Administration, the relocation of the FBI’s headquarters puts a cap on a yearslong saga that involved infighting among Virginia, Maryland and the District, as well as the involvement of three presidential administrations, beginning with former Barack Obama.

“This is a historic moment for the FBI,” FBI Director Kash Patel said in a statement Tuesday. “Through our strong partnerships with members of Congress and GSA, we are ushering into a new era and providing our agents of justice a safer place to work. Moving to the Ronald Reagan Building is the most cost effective and resource efficient way to carry out our mission to protect the American and uphold the Constitution.”

During the Obama administration, the GSA began evaluating new homes for the FBI, which has been housed since the 1970s in the deteriorating Hoover building at 935 Pennsylvania Ave. NW. In 2013, localities in Northern Virginia proposed multiple locations for a new building, but it took until 2016 for the GSA to come down to three finalists, including one location in Springfield and two in Prince George’s County.

FILE - The American flag flying alone beside an empty flagpole that previously had the flag of the U.S. Agency for International Development, or USAID, are pictured in the reflection of a window that previously had the sign and the seal of USAID, outside the agency's headquarters in Washington, Feb. 7, 2025. (AP Photo/Jose Luis Magana, File)
FILE – The American flag flying alone beside an empty flagpole that previously had the flag of the U.S. Agency for International Development, or USAID, are pictured in the reflection of a window that previously had the sign and the seal of USAID, outside the agency’s headquarters at the Reagan Building in Washington, Feb. 7, 2025. (AP Photo/Jose Luis Magana, File)

Then came President Donald Trump’s first term in 2017, when all progress on moving the FBI halted, as Trump said he had no interest in moving the agency to a new, billion-dollar complex. However, with the 2020 election of President Joe Biden, the three locations in Maryland and Virginia were reconsidered.

In late 2023, the GSA announced it had chosen Greenbelt, Maryland, as the FBI headquarters’ new location — an announcement that infuriated , who called it a “corrupt” process after former FBI Director Christopher Wray wrote to the entire agency that a political appointee to the GSA had overridden a three-person panel’s unanimous recommendation to build the new headquarters in Springfield.

Warner, , and almost all of Virginia’s congressional delegation called for a reversal of the decision, condemning “political interference” in the site selection.

But then, Trump was re-elected in 2024, and he called off the move to Maryland, and that leads us back to Tuesday’s news. Formerly home to the U.S. Agency for International Development, which was dismantled and put out of business by the Trump administration, the Reagan complex at 1300 Pennsylvania Ave. NW, was completed in 1998 and houses the U.S. Customs and Border Protection headquarters and private tenants, according to the FBI-GSA announcement.

“This move not only provides a world-class location for the FBI’s public servants, but it also saves Americans billions of dollars on new construction and avoids more than $300 million in deferred maintenance costs at the J. Edgar Hoover facility,” said GSA Public Buildings Service Commissioner Michael Peters. “We are proud to partner with Director Patel to drive efficiency and improve the quality of space for a productive workforce in service to national security and taxpayers.”

Warner and Kaine, both Democrats, criticized the decision in a joint statement Tuesday: “Moving the FBI from the Hoover Building to the Reagan Building isn’t a plan, it’s a punt. For years, Democratic and administrations alike have agreed on the need for a secure, purpose-built headquarters that actually meets the FBI’s mission needs. This announcement brushes aside years of careful planning, ignores the recommendations of security and mission experts, and raises serious concerns about how this decision was made.

“Unfortunately, it fits a broader pattern from this administration — one marked by indiscriminate firings, canceled leases, and a general disregard for the federal workforce.”

CIA pays Peterson Cos. $246M for Virginia office building

The recently purchased a massive, 10-story office building in for $246.4 million, according to tax records. However, the agency has yet to reveal its plans for the building.

Records indicate that DD North 2 — a limited liability company for family-owned Fairfax-based real estate developer — sold its Dulles Discovery 2 , located at 13870 Air and Space Museum Parkway, to the federal government on May 29. The company’s website states that the property features a 434,000-square-foot Class A office building, constructed in 2010.

While the CIA isn’t specifically mentioned in the tax records, the mailing address for the new owner contains the , zip code 20505, which is a code unique to the CIA.

The CIA did not immediately return requests for comment. Bill Smith, senior managing director for commercial with Peterson, said that the CIA had already been leasing Dulles Discovery 2 for , and that the building was originally built to serve the agency’s needs. He said the federal government leases the remainder of the Dulles Discovery buildings, but declined to provide additional details.

The property is part of the Dulles Discovery office campus, east of Route 28 and west of Route 657. It is near a Chick-fil-A, a Wawa and an urgent care. In addition to the building recently sold to the CIA, there are four other Dulles Discovery buildings that total more than 1.8 million square feet of space. The most recent building was built in 2024.

Founded in 1965 by the late Milton V. Peterson, Peterson Cos. has developed multiple major mixed-use projects in Northern Virginia and Maryland, including National Harbor in Maryland, home to the MGM National Harbor casino resort; the Gaylord National Resort & Convention Center; The Capital Wheel; Fairfax Corner; Fair Lakes; Burke Centre; and Tysons McLean Office Park.

2025 GAUGE Report Reveals Keys to GovCon Performance and Resilience

Unanet, a leading provider of ERP and CRM solutions for government contractors (GovCons), and CohnReznick LLP have released the 2025 GAUGE Report revealing timely insights into how GovCons are improving resource planning and program execution, as well as utilization metrics, to stay competitive in today’s dynamic federal contracting market.

“When we team up to publish the GAUGE Report, the GovCon industry pays attention because it’s grounded in real data from over 1,200 of their peers,” said Unanet Vice of Product Marketing Kim Koster, a co-author of the report along with CohnReznick Partner Christine Williamson. “This year’s findings make one thing clear: the most successful GovCons are mastering resource management and building mature, scalable systems that align , projects, and performance.”

The special theme for the 2025 GAUGE Report is resource and operational maturity of high-performing GovCons. The data underscores how firms are embracing centralizing project management offices (PMOs), AI-powered tools, and scalable systems to support growth across multiple programs and locations. From compliance to forecasting, the report provides benchmarking data and best practices rooted in real-world performance.
The GAUGE allows GovCons to benchmark their company vis-à-vis their peers in five key areas:

• G – Government compliance: Business systems, efficiency, and audits
• A – Accounting: Margins, indirect costs, and DSO
• U – Utilization: Resource planning matur

 

Announce your new product launches or updates, company milestones, partnerships & collaborations, industry awards and recognition, events and conferences, corporate social responsibility initiatives, or business updates to our influential audience. Your announcement will be showcased in print and online, as well as in search, so our community stays informed.

Submit your form here

Senate passes Trump’s big tax breaks and spending cuts bill as Vance breaks 50-50 tie

Summary

  • Senate passes bill with VP breaking 50-50 tie.
  • Package includes tax breaks and steep spending cuts.
  • House Speaker warns against major changes.
  • Senate clashed over Medicaid reductions and deficit impact.
  • Rand Paul and two other Republicans opposed the bill.

(AP) — Senate Republicans hauled  Donald ‘s big tax breaks and spending cuts bill to passage Tuesday on the narrowest of margins, pushing past opposition from Democrats and their own GOP ranks after a turbulent overnight session.

The outcome capped an unusually tense weekend of work at the Capitol, the president’s signature legislative priority teetering on the edge of approval or collapse. In the end that tally was 50-50, with Vice President JD Vance casting the tie-breaking vote.

Three senators — Thom Tillis of North Carolina, Susan Collins of Maine and Rand Paul of Kentucky — joined all Democrats in voting against it.

“The big not so beautiful bill has passed,” Paul said after the vote.

The difficulty it took for Republicans, who have the majority hold in Congress, to wrestle the bill to this point is not expected to let up. The package now goes back to the House, where Speaker Mike Johnson had warned senators not to deviate too far from what his chamber had already approved. But the Senate did make changes, particularly to Medicaid, risking more problems as they race to finish by Trump’s Fourth of July deadline.

The outcome is a pivotal moment for president and his party, which have been consumed by the 940-page “One Big Beautiful Bill Act,” as it’s formally titled, and invested their political capital in delivering on the GOP’s sweep of power in Washington.

Trump acknowledged it’s “very complicated stuff,” as he departed the White House for Florida.

“I don’t want to go too crazy with cuts,” he said. “I don’t like cuts.”

What started as a routine but laborious day of amendment voting, in a process called vote-a-rama, spiraled into a round-the-clock slog as Republican leaders were buying time to shore up support.

The droning roll calls in the chamber belied the frenzied action to steady the bill. Grim-faced scenes played out on and off the Senate floor, amid exhaustion.

Senate Majority Leader John Thune of South Dakota was desperately reaching for last-minute agreements between those in his party worried the bill’s reductions to Medicaid will leave millions without care, and his most conservative flank, which wants even steeper cuts to hold down deficits ballooning with the tax cuts.

The GOP leaders have no room to spare, with narrow majorities. Thune could lose no more than three Republican senators, and two — Tillis, who warned that millions of will lose access to Medicaid health care, and Paul, who opposes raising the debt limit by $5 trillion — had already indicated opposition.

Attention quickly turned to two other key senators, Lisa Murkowski of Alaska and Collins, who also raised concerns about health care cuts, as well as a loose coalition of four conservative GOP senators pushing for even steeper reductions.

Murkowski in particular became the subject of the GOP ‘s attention, as they sat beside her for talks. She was huddled intensely for more than an hour in the back of the chamber with others, scribbling notes on papers.

Then all eyes were on Paul after he returned from a visit to Thune’s office with a stunning offer that could win his vote. He had suggested substantially lowering the bill’s increase in the debt ceiling, according to two people familiar with the private meeting and granted anonymity to discuss it.

Senate Democratic Leader Chuck Schumer of New York said “Republicans are in shambles because they know the bill is so unpopular.”

An analysis from the nonpartisan Congressional Budget Office found 11.8 million more Americans would become uninsured by 2034 if the bill became law. The CBO said the package would increase the deficit by nearly $3.3 trillion over the decade.

And on social media, billionaire Elon Musk was again lashing out at Republicans as “the PORKY PIG PARTY!!” for including the $5 trillion debt ceiling in the package, which is needed to allow continued borrowing to pay the bills.

Senators insist on changes

Few Republicans appeared fully satisfied as the final package emerged, in either the House or the Senate.

Collins had proposed bolstering the $25 billion proposed rural hospital fund to $50 billion, offset with a higher tax rate on those earning more than $25 million a year, but her amendment failed.

And Murkowski was trying to secure provisions to spare people in her state from some food stamp cuts, which appeared to be accepted, while she was also working to beef up federal reimbursements to hospitals in Alaska and others states, that did not comply with parliamentary rules.

What’s in the big bill

All told, the Senate bill includes $4.5 trillion in tax cuts, according to the latest CBO analysis, making permanent Trump’s 2017 rates, which would expire at the end of the year if Congress fails to act, while adding the new ones he campaigned on, including no taxes on tips.

The Senate package would roll back billions of dollars in green energy tax credits, which Democrats warn will wipe out wind and solar investments nationwide. It would impose $1.2 trillion in cuts, largely to Medicaid and food stamps, by imposing work requirements on able-bodied people, including some parents and older Americans, making sign-up eligibility more stringent and changing federal reimbursements to states.

Additionally, the bill would provide a $350 billion infusion for border and national security, including for deportations, some of it paid for with new fees charged to immigrants.

Democrats fighting all day and night

Unable to stop the march toward passage, the Democrats tried to drag out the process, including with a weekend reading of the full bill.

A few of the Democratic amendments won support from a few Republicans, though almost none passed. More were considered in one of the longer such sessions in modern times.

One amendment overwhelmingly approved stripped a provision barring states from regulating artificial intelligence if they receive certain federal funding.

Sen. Patty Murray of Washington, the ranking on the Appropriations Committee, raised particular concern about the accounting method being used by the Republicans, which says the tax breaks from Trump’s first term are now “current policy” and the cost of extending them should not be counted toward deficits.

She said that kind of “magic math” won’t fly with Americans trying to balance their own household books.