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The Daybreak Insider
Wednesday, July 2, 2025
1.
Senate Passes Trump’s Big, Beautiful Bill

By the narrowest of margins: 51-50, with Vice President J.D. Vance serving as the tie-breaking vote. The Hill: Senate Republicans delivered a huge legislative victory for President Trump on Tuesday by passing his One Big, Beautiful Bill Act after hours of tense negotiations that lasted through the night. The final vote came after lawmakers worked through the weekend before launching a 27-hour marathon of amendment votes on the floor, during which Republican leaders sought to win the support of holdouts. GOP Sens. Thom Tillis (N.C.), Rand Paul (Ky.) and Susan Collins (Maine) voted against the measure, along with every Democrat (The Hill). Axios: The bill makes permanent Trump 2017 tax cuts and adds additional tax benefits — no tax on tips, no tax on overtime and no tax on social security. It makes significant changes to the Medicaid program, including imposing work requirements and eventually lowering provider taxes from 6% to 3.5%. It raises the debt ceiling by $5 trillion, and provides $175 billion for border security as well as $150 billion for defense (Axios).

2.
How Did John Thune Get the Bill Passed?
The Senate Majority Leader thread the needle, with not a single vote to spare. Semafor: Moderate in temperament but conservative in ideology, Thune surprised more centrist Republicans in recent days by adding more aggressive Medicaid cuts to President Donald Trump’s tax-cuts bill and aligning with conservatives who want to rein in Obamacare’s Medicaid expansion. Working with Trump, Thune also worked to gut clean energy subsidies, many of which were leftovers from Joe Biden’s presidency. All told, Thune shaped a more conservative bill than the House did in several key areas. He acknowledged as much in an interview with Semafor: “And it’s not just me: That was the consensus. “I’ve tried to … indicate to (the House) when they were moving their bill over there that we were going to be as conservative — or more so — than they are,” Thune told Semafor in an interview about the bill, which passed 51-50 and now heads to the House. “And in the end, we did”…. Then Trump’s administration gave Thune until the next holiday to get it done. Using Trump as vinegar and a July 4 recess as honey, the South Dakotan rammed through a bill that many Republicans probably would have opposed under other circumstances. Now comes an arguably harder chapter: Making sure the bill and its Medicaid cuts don’t become a political albatross for Republicans. (Semafor).

3.
Speaker Johnson Promises Big, Beautiful Bill by Independence Day
Jeff Charles of Townhall: House Speaker Mike Johnson vowed to pass the One Big Beautiful Bill by Independence Day, hours after the Senate passed the measure. In a post on X, the Speaker joined several other lawmakers in issuing a statement detailing the plan. “The House will work quickly to pass the One Big Beautiful Bill that enacts President Trump’s full America First agenda by the Fourth of July. The American people gave us a clear mandate, and after four years of Democrat failure, we intend to deliver without delay,” he wrote. Republicans were elected to do exactly what this bill achieves: secure the border, make tax cuts permanent, unleash American energy dominance, restore peace through strength, cut wasteful spending, and return to a government that puts Americans first. This bill is President Trump’s agenda, and we are making it law. House Republicans are ready to finish the job and put the One Big Beautiful Bill on President Trump’s desk in time for Independence Day (Townhall).

4.
Trump Responds to Progress on Megabill
Trump: Almost all of our Great Republicans in the United States Senate have passed our “ONE, BIG, BEAUTIFUL BILL.” It is no longer a “House Bill” or a “Senate Bill”. It is everyone’s Bill. There is so much to be proud of, and EVERYONE got a major Policy WIN — But, the Biggest Winner of them all will be the American People, who will have Permanently Lower Taxes, Higher Wages and Take Home Pay, Secure Borders, and a Stronger and More Powerful Military. Additionally, Medicaid, Medicare, and Social Security Benefits are not being cut, but are being STRENGTHENED and PROTECTED from the Radical and Destructive Democrats by eliminating Waste, Fraud, and Abuse from those Programs. We can have all of this right now, but only if the House GOP UNITES, ignores its occasional “GRANDSTANDERS” (You know who you are!), and does the right thing, which is sending this Bill to my desk. We are on schedule — Let’s keep it going, and be done before you and your family go on a July 4th vacation. The American People need and deserve it. They sent us here to, GET IT DONE! (Townhall).

5.
Israel’s Ron Dermer at White Amidst News of Breakthrough on Gaza Ceasefire
Trump sums it up: My Representatives had a long and productive meeting with the Israelis today on Gaza. Israel has agreed to the necessary conditions to finalize the 60 Day CEASEFIRE, during which time we will work with all parties to end the War. The Qataris and Egyptians, who have worked very hard to help bring Peace, will deliver this final proposal. I hope, for the good of the Middle East, that Hamas takes this Deal, because it will not get better — IT WILL ONLY GET WORSE. Thank you for your attention to this matter! (Truth) Ron Dermer Strategic Affairs Minister for Israel’s Prime Minister Netanyahu was in the White House preparing for meetings of Trump and Netanyahu next week: Dermer is reportedly slated to meet with US special envoy Steve Witkoff, Secretary of State Marco Rubio, and Vice President JD Vance (Times of Israel). Israel Hayom: Washington conversations between Minister of Strategic Affairs Ron Dermer and Special Envoy Steve Witkoff produced at least two proposals addressing the core issues, with Israel demonstrating remarkable flexibility. Simultaneously, Hamas accepted several previously rejected conditions – notably agreeing to provide hostage status information, accept international oversight of food distribution in territories under its control, and crucially, show flexibility regarding its post-war role. Nevertheless, discussions with senior Israel Defense Forces officials and security sources raised concerns that intensified pressure on Hamas and severe operational damage might endanger hostages through resulting in anarchy and internal conflicts with armed factions from various groups and organized clans. These developments accelerated Prime Minister Benjamin Netanyahu’s planned Washington visit next week. (Israel Hayom).

6.
Syria and Israel in Conversations to Normalize Relations
It’s a notion that seemed like the stuff of fiction only a year ago. Times of Israel: Israel and Syria are holding “advanced talks” on a bilateral agreement halting hostilities between the countries, a senior Israeli official told The Times of Israel on Monday. The contacts are focused on coordination around security matters, said the official, who would not speculate on when a full peace deal between the two enemy states could turn into reality. “Could it develop into something beyond (security arrangements)?” the official asked. “We will wait and see. For now, there isn’t anything concrete” (Times of Israel). What are the terms or the conditions of such an development? Israel Hayom: According to a report by Lebanon’s LBCI news channel, Syria has outlined several conditions for normalizing relations with Israel. These reportedly include official Israeli recognition of the regime led by Ahmed al-Sharaa, a full withdrawal from territories captured by Israel last December, an end to Israeli airstrikes in Syria, security arrangements in southern Syria, and US guarantees and support for the Syrian regime. In return, Syria may agree to permanently recognize Israeli sovereignty over the Golan Heights (Israel Hayom). That last part– Israeli sovereignty over the Golan Heightsis enormously significant. Michael Oren explains: We must not miss this opportunity … (Oren). Lazar Berman: Could this lead to Syria joining the Abraham Accords? And what position does this put Turkey in, even as its neighbor, Iran, just suffered a defeat at the hands of the US and Israel? (TOI).

7.
Gas Prices Down Nationwide—but Up in California as New Standards Kick In
As the nation goes into the holiday weekend, gas prices nationwide are down—with the national average now at $3.16 at gallon. In California the average is at $4.59 per gallon, the highest in the nation (EIA; AAA). That number is set to soar even higher as new rules that have just gone into effect on July 1: Formally called the Road Repair and Accountability Act, the SB 1 gas tax expects to raise $52.4 billion over 10 years. More than $3.2 billion per year will go to the Road Maintenance and Rehabilitation Program that includes $400 million for bridges and culverts, $200 million for local entities and $100 million for bicycle and pedestrian projects. Since 2018, the gasoline excise tax has gone up 20 cents (San Diego Union Tribune). The exact price impact of the new program is speculative, but estimates are up to 65 cents a gallon. Richard Grenell: Today, California gas prices will dramatically increase by 65 cents.  Gavin Newsom says it will only be 10 cents but he’s not including all of the impact. He’s not smart enough to understand the consequences of his radical ideas (Grenell). California Rep. Kevin Dalton: Gavin Newsom attempts to explain California’s extraordinarily high gas prices and fleeing refineries are because of global market changes and other national issues, and definitely not the backbreaking taxes and regulations he and the democratic supermajority have imposed on the oil companies over the last decade (Dalton). Separate and aside from the new standards that kick in, California’s gas tax went up an additional 1.6 cents per gallon on July 1 (Fox 11).

8.
A Warning on EU’s Digital Services Act and Their “Code of Conduct on Disinformation”
The title alone ought to set off alarms over Orwellian control of speech: As of July 1, 2025, Europe’s Code of Conduct on Disinformation is officially in effect. What was once a voluntary self-regulatory framework is now locked into the Digital Services Act (DSA), requiring the Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) to meet tougher transparency and auditing obligations aimed at stamping out disinformation. Full compliance with the Code now counts as a key risk-mitigation measure and marker of DSA compliance. And come audit time, tech platforms will have to prove they’re sticking to their commitments – or face scrutiny from Brussels. The Code comes into effect just ahead of high-stakes trade talks between the EU and the US, with a July 9 deadline looming. But the EU has so far held firm. “The DSA and the DMA are not on the table in trade negotiations,” a Commission spokesperson said Monday, adding “we are not going to adjust the implementation of our legislation based on actions of third countries. If we started down that road, we’d have to do it with many countries” (Tech Policy). ADF: The DSA threatens free speech across the world and must be repealed (ADF). Our FCC Chairman Brendan Carr has been a strong voice against the DSA: The chairman of the U.S. Federal Communications Commission (FCC) on Monday called out European Union’s content moderation law as incompatible with America’s free speech tradition and warned of a risk that it will excessively restrict freedom of expression. “There is some concern that I have with respect to the approach that Europe is taking with the DSA (EU Digital Services Act) in particular,” Brendan Carr, a Republican appointed to the FCC helm by President Donald Trump in January, said at the Mobile World Congress in Barcelona, Spain. For U.S. tech companies in Europe, Carr said, DSA’s approach was “something that is incompatible with both our free speech tradition in America and the commitments that these technology companies have made to a diversity of opinions.” Carr is the second high-ranking U.S. official in recent months to challenge European regulations. In February, Vice President JD Vance denounced content moderation at an AI summit in Paris, calling it “authoritarian censorship” (Reuters).

9.
Trump Visits Alligator Alcatraz

The detention facility in Florida for illegal immigrants awaiting deportation. Bob Hoge of Red State: Donald Trump visited the new “Alligator Alcatraz” illegal immigrant holding center in the swamps of Florida Tuesday and toured the facilities with Homeland Security Secretary Kristi Noem and Sunshine State Gov. Ron DeSantis. Although the president and the governor clashed during the ’24 presidential campaign—with Trump taking to calling his opponent “Desanctimious”—things took a nicer turn on this trip. “You will always be my friend,” the president said in a news conference after the tour (Red State). Sarah Arnold of Townhall: While “Alligator Alcatraz” may sound like a nightmare for those in the country illegally, Trump and Noem offered a simple message: “No one has to come here illegally.” They emphasized that if individuals choose to self-deport and return home, they still have the option to come back—legally (Townhall). David Strom: Trump’s threats of terrible consequences have already closed the border–sure, enforcement has made a difference, but most of the decline is due to deterrence. The same plan is at work here.  So yes, the cruelty is the point, but the point is not being cruel to be cruel, but to make the choice between staying and going crystal clear. The goal is to make deportations eventually unnecessary–nobody wants to face the consequences of breaking the law in the first place, so the need for places like Alligator Alcatraz dissipates (Hot Air).

10.
Houthis Launch Ballistic Missile at Israel; Huckabee: B-2 Bombers “need to visit Yemen”

Jerusalem Post: US Ambassador Mike Huckabee said that US B-2 bomber planes “need to visit Yemen” after the Houthis launched a missile towards Jerusalem on Tuesday. “We thought we were done with missiles coming to Israel, but Houthis just lit one up over us in Israel,” the ambassador wrote on X/Twitter. “Fortunately, Israel’s incredible interception system means we go to the shelter & wait until all clear. Maybe those B2 bombers need to visit Yemen!” (Jerusalem Post).

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