Senate Democrats Unexpectedly Pass Bill to Deliver Trump Promise

In a rare display of bipartisan unity, the U.S. Senate on Tuesday unanimously passed a key campaign promise of President Donald Trump.

The legislation, deemed the “No Tax on Tips Act,” aims to eliminate federal income taxes on tips, providing significant financial relief to millions of service industry workers across the nation.

It allows traditionally tipped employees to deduct up to $25,000 in tips from their federal income taxes.

The deduction applies to cash tips reported to employers for withholding purposes and is available to workers earning $160,000 or less in 2025, with the threshold set to adjust for inflation in subsequent years.

The bill specifically targets workers in traditionally tipped industries, as defined by the Treasury Department.

Democrats Align with Trump’s Vision

The bill’s passage was initiated by Senator Jacky Rosen (D-Nev.), who brought it to the floor expecting opposition.

However, none of the other senators decided to object, allowing the measure to pass via unanimous consent.

“I just want to say: This is great news for Nevada,” Rosen said after the bill was advanced, lauding the work of the millions of hospitality and service workers in her home state, who she says are being “squeezed by rising costs.”

Rosen emphasized the bill’s importance to her constituents, noting that Nevada has more tipped workers per capita than any other state.

“Nevadans, our families, are being squeezed, and we need real relief,” Rosen said in her floor remarks.

“For some, many service and hospitality workers, tips aren’t extra, it’s part of their income that they use to make ends meet.”

Cruz Praises Trump’s Initiative

Senator Cruz, who co-sponsored the bill, praised President Trump’s foresight in proposing the tax exemption during his campaign.

He described the initiative as a moment of “political genius” by the president to back the idea.

Cruz also highlighted the bill’s potential to provide immediate relief to hardworking Americans.

“Here’s the good news: With what we just saw now, the certainty that we will see no tax on tips become the law of the land, I think, is very close to 100 percent,” Cruz said. “One way or another, no tax on tips is going to become law.”

The legislation now moves to the House of Representatives, where it is expected to pass either as a standalone measure or as part of President Trump’s broader tax reform package.

Speaker Mike Johnson (R-La.) has indicated plans to bring the bill to a vote promptly, reinforcing the administration’s commitment to delivering on its promises to American workers.