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The 51-to-48 vote came over the objections of two Republicans. The House is expected to give final approval to the package later this week, sending it to Mr. Trump for his signature.
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The Senate voted 51 to 48 to reclaim spending previously approved by Congress.
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Get the latest news on President Donald Trump's second term in the White House and the Republican-led Congress.
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(Top headline, 1st story, link)
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Republicans on the Senate Foreign Relations Committee said the changes were needed and called the outrage overblown.
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The vote to take up legislation to rescind $9 billion in congressionally approved funds suggested that Republicans would bow to the president's wishes in the simmering fight over spending powers.
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The law is creating backlash from the gambling industry and bettors who could owe taxes even if they break even.
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Tucked into the huge set of tax cuts that Republicans passed into law this month was the expansion of an unusually valuable tax break for start-up investors.
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Get the latest news on President Donald Trump's second term in the White House and the Republican-led Congress.
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(First column, 9th story, link)
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