House Republicans have finalized the revisions to their megabill, making critical adjustments to secure Senate approval. The bill, which spans multiple policy areas, has undergone significant changes in the hours before its floor debate. Key provisions include adjustments to Medicaid expansion, modifications to clean-energy tax credits, and changes to the state-and-local-tax deduction cap. These amendments reflect the GOP’s strategic efforts to balance party priorities and address lobbying pressure and political considerations.
Among the most significant changes are the adjustments to Medicaid expansion. The amendment includes provisions that disincentive states from expanding their Medicaid programs, a decision that has drawn criticism from Democrats and some progressive Republicans. Meanwhile, the clean-energy tax credits have been modified to align with Republican priorities, while also considering the impact on the broader energy market. The state-and-local-tax deduction cap, a contentious issue, has also seen alterations that may affect both state and local governments.
Other notable changes include adjustments to federal pension calculations, with the removal of provisions that would have altered the way retirement payments for federal employees are calculated. This change, supported by Rep. Mike Turner and many Democrats, reflects efforts to address concerns about pension benefits. Additionally, provisions related to gun silencers have been eliminated, removing both the $200 transfer tax and the $200 tax on the manufacture of silencers, a decision influenced by Rep. Andrew Clyde and his allies.
Public land sales in Nevada and Utah have also been struck from the bill, despite initial support from members of those states. Rep. Ryan Zinke’s opposition to using land sales for revenue highlights the internal conflicts within the Republican Party. The bill also includes new provisions related to tax-advantaged savings vehicles, now known as ‘Trump Accounts,’ which were a campaign promise by former President Donald Trump. Other amendments affect the tanning salon industry, retaining an excise tax on tanning beds that was initially part of the Affordable Care Act.
The remittance tax has been scaled back from 5 percent to 3.5 percent, a move that has been met with mixed reactions from financial institutions and foreign governments. Additionally, new language restricts payments to Affordable Care Act plans offering abortions outside specific circumstances, a provision that has sparked debate on reproductive rights. In the area of nuclear energy, the revisions have softened some tax credit phase-outs for advanced reactors, a move that has been welcomed by the nuclear industry.
These revisions underscore the GOP’s effort to navigate a complex landscape of lobbying interests, party priorities, and political considerations. As the bill moves to the Senate, it remains to be seen how these changes will impact the broader policy landscape and the future of American legislation.