The Senate Finance Committee is on the verge of releasing its major legislative package, which could include critical tax and Medicaid reforms, as early as Friday. This development comes after Senate Majority Leader John Thune reassured POLITICO that President Trump’s campaign promises, including tax relief provisions for tips and overtime work, are likely to be included in the bill. Thune emphasized that the president’s priorities are expected to remain intact, despite earlier considerations of modifying some of Trump’s tax policies to accommodate larger business tax cuts.
The decision to potentially delay the release of the bill text until next week is attributed to Senate Finance Chair Mike Crapo (R-Idaho), who is concerned about the exposure of such sensitive legislation to lobbying scrutiny. His move reflects a strategic decision to keep the proposal under wraps until a more opportune time, minimizing potential amendments from external stakeholders.
The bill has the potential to spark significant policy disagreements, as demonstrated by Sen. Josh Hawley (R-Mo.) who has indicated that if the legislation does not sufficiently ease Medicaid cuts, he might push for a Senate floor vote that could include the rollback of tax limits that affect state obligations for the program. Despite his willingness to amend the bill on the floor, Hawley acknowledges that such a move may not align with leadership’s preferences.
Blue-state House Republicans could also face internal challenges if the legislation reduces the $40,000 state-and-local-tax (SALT) deduction cap. Notably, Rep. Nick LaLota, a key supporter of the SALT provisions, changed his vote during a House session after meeting with House Speaker Mike Johnson. This shift in support could indicate a growing sentiment in favor of maintaining the SALT deductions, potentially impacting the bill’s reception.
Meanwhile, bipartisan tensions within the Republican Party are emerging, with some hardliners like Ron Johnson (Wis.), Mike Lee (Utah), and Rick Scott (Fla.) showing signs of potential support for the megabill despite their previous opposition. These changes may come in response to private conversations with Trump and interactions with administration officials, including Vice President JD Vance and National Economic Council Director Kevin Hassett.
In addition, the Republican factions have released differing proposals for the Homeland Security portion of the megabill, as highlighted by Rand Paul (Ky.) and Lindsey Graham (S.C.), who have presented competing plans. These proposals have been deemed by GOP leaders as unworkable, further complicating the legislative process.
Internationally, the recent Israeli strike against Iran’s nuclear facilities has sparked reactions from U.S. politicians, with many Republicans expressing support for Israel and highlighting the potential for broader regional conflict. In domestic matters, Speaker Johnson is suggesting that Sen. Alex Padilla should be censured for interrupting a press conference, while Democrats are advocating for Noem to testify or resign, reflecting the potential political fallout from this incident.