Trump’s ‘No Tax on Tips’ Agenda Clears Senate Without a Fight [WATCH]

The U.S. Senate on Tuesday unanimously passed legislation to eliminate federal taxes on tipped wages, moving forward a significant component of President Donald Trump’s 2024 campaign agenda.

The bill passed by unanimous consent, with no senator objecting to its advancement.

🚨BREAKING: The Senate has passed President Trumps “No Tax on Tips Act.” 100-0 vote.

Promises made. Promises Kept. pic.twitter.com/coG7S39b1b

— Benny Johnson (@bennyjohnson) May 20, 2025

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The legislation, introduced by Sen. Ted Cruz (R-TX), gained bipartisan support and passed unexpectedly without delay. Sen. Jacky Rosen (D-NV), who brought the bill to the Senate floor anticipating resistance, expressed surprise at the swift passage.

“This is great news for Nevada,” Rosen said following the vote.

“This bill is not the be-all, end-all, but it’s going to offer immediate financial relief while the Senate continues to work to lower costs and find other avenues of relief for hard-working families.”

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The bill would exempt tips from federal income taxation, directly impacting millions of workers in industries such as food service, hospitality, and delivery.

Supporters say it will provide significant relief to employees who rely heavily on tips to make ends meet.

Sen. Cruz praised the outcome and emphasized the measure’s significance for working Americans.

“Whether it passes free standing or as part of the bigger bill one way or another, ‘No Tax on Tips’ is going to become law and give real relief to hard working Americans,” Cruz said.

“So I’m proud of what the Senate just did, and I commend Democrats and Republicans, even at a time of partisan division, coming together and agreeing on this common sense policy.”

The bill now advances to the House of Representatives, where lawmakers are weighing whether to pass it as part of a broader legislative package aligned with President Trump’s policy agenda or to vote on it as a standalone bill.

House Republican leaders have signaled strong support for the measure, particularly given its inclusion in President Trump’s 2024 platform.

The proposal to eliminate federal taxes on tips was highlighted by Trump during multiple campaign events as a way to put more money directly into the hands of workers.

Senate Majority Leader Chuck Schumer (D-NY) also expressed support for the measure while attempting to draw a contrast with broader Republican tax policy.

“Working Americans — from servers, to bartenders, delivery drivers, and everything in between — work hard for every dollar they earn and are the ones who deserve tax relief, not the ultra-rich,” Schumer said Tuesday.

“While President Trump and Republicans push tax breaks for billionaires and stick the middle class with the bill, Senate Democrats are standing strong to protect America’s working families.”

Despite Schumer’s remarks, the bill is closely associated with Trump’s economic agenda and marks one of the few areas of bipartisan agreement in recent months.

The legislation’s path through the House will likely determine whether it is enacted before the end of the current congressional session.

If signed into law, the measure would eliminate federal income taxes on tips — a move that supporters argue would simplify tax reporting, reduce IRS audits targeting service workers, and provide immediate financial benefits to millions of Americans working in tipped professions.

Further details regarding the bill’s progress in the House are expected in the coming days.

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