The Senate Finance Committee has unveiled key components of President Donald Trump’s ‘big, beautiful bill,’ attempting to balance House compromises on Medicaid and the state and local tax (SALT) deduction cap while facing internal Republican pressures. The committee, led by Senator Mike Crapo, R-Idaho, has taken a stance to ensure the permanence of the 2017 Tax Cuts and Jobs Act, reduce spending on the ‘Green New Deal,’ and protect Medicaid programs for the most vulnerable populations.
Despite House Speaker Mike Johnson’s efforts to keep the bill’s provisions largely intact, Senate Republicans have proposed significant changes, including lowering the SALT deduction cap and further Medicaid cuts, which have drawn criticism from blue-state Republicans. These provisions have sparked concerns about potential negative impacts on healthcare access, particularly in rural areas, and have led some lawmakers to threaten a revolt if the Senate continues to alter key tax rules.
Apart from the SALT deduction cap and Medicaid reforms, the Senate’s version has introduced modifications to green energy tax credits and the Child Tax Credit. These changes reflect an attempt to provide more flexibility in the expirations of Biden-era subsidies. Additionally, the Senate’s offering includes an increased debt limit to $5 trillion, a move that has drawn scrutiny from certain Republican senators, including Sen. Rand Paul, who advocates for a separate vote on the debt limit.
The impetus for advancing the Senate’s version of the ‘big, beautiful bill’ is also tied to the looming debt deadline, as the Treasury Department forecasts that Congress will have until August to increase the debt limit. This timeline adds further urgency to the legislative process, as lawmakers aim to secure the necessary funding before the fiscal year’s end.