The Senate Finance Committee is expected to reveal at least some of its revisions to the House-passed ‘big beautiful bill’ on Monday. The panel’s text will likely include placeholders for key provisions such as Medicaid and tax measures as negotiations continue. Chair Mike Crapo (R-Idaho) will brief Senate Republicans on his proposals around 6 p.m., according to three individuals who were not permitted to speak publicly about the unannounced plans.
Expect the state-and-local-tax (SALT) deduction to be one of the outstanding issues as GOP senators continue to discuss how much they want to roll back the House’s $40,000 SALT cap. Senate Majority Leader John Thune hinted at a potential compromise on the SALT deduction in a pre-taped ‘Fox News Sunday’ interview. He noted there isn’t a high level of interest among senators to follow the House in quadrupling the $10,000 deduction currently in effect. However, Thune maintained that President Donald Trump’s tax priorities, which include no taxes on tips and overtime, will be incorporated into the Senate’s version of the megabill, despite Senate Republicans’ preference to make business tax incentives permanent.
According to an anonymous source, Senate Republicans still plan to make business tax incentives permanent, a decision that aligns with the goals of Thune, Crapo, and other members of the Finance Committee. With the Senate scheduled to be out on Thursday and Friday, this shortened week will be crucial in ensuring the bill reaches Trump’s desk by July 4. The Senate parliamentarian will engage in bipartisan discussions with committees, and staff anticipate she will start issuing rulings now that nearly every committee has released text.
Other developments related to the megabill include the recent conversations between Trump and Sen. Rand Paul. Paul, who has previously objected to the bill’s debt ceiling increase, informed NBC News that he spoke with Trump on Saturday. While Paul indicated he is not an absolute no to the bill, he also mentioned that Republicans are not investing much effort in persuading him. Additionally, Mark Meadows, the former House Freedom Caucus chair and former chief of staff to Trump, is serving as a sounding board for conservatives seeking to preserve some of their major priorities in the megabill. Meadows has been in contact with both House and Senate hard-liners and is currently engaged with House Freedom Caucus members.
Senate GOP leaders are also receiving external support as they navigate the Medicaid revisions and provider tax provisions in the megabill. Hospital associations from 13 states have sent a letter to Thune and Crapo, urging them to move forward with the carefully negotiated Medicaid provider tax-related and Medicaid directed payment program provisions in the House-passed budget reconciliation bill. Furthermore, Senators are set to receive a classified security briefing on Tuesday morning from the chamber’s sergeant at arms and the Capitol Police following a Saturday shooting that killed and injured Minnesota state lawmakers and their spouses. The internal announcement from Thune about the bipartisan briefing came after GOP senators and Minority Leader Chuck Schumer requested one.