Senate Finance Republicans are increasingly looking to dial back key items on President Donald Trump’s tax policy wish list, creating tension with the architect of the House-passed tax legislation, Ways and Means Chair Jason Smith. The House version of the megabill includes measuresTrump has indicated he supports, such as extended tax incentives for research and development, business equipment, and debt interest through 2029. However, Senate Republicans are concerned about the financial implications of making these incentives permanent, as they could add hundreds of billions to the deficit. Instead, they are looking to water down other provisions, including no taxes on tips and overtime, which together cost around $230 billion, according to the Joint Committee on Taxation. Smith is warning senators to tread carefully in challenging Trump’s desires, emphasizing the importance of maintaining the president’s priorities. But some Senate Republicans, such as Sen. Ron Johnson (R-Wis.) and Thom Tillis (R-N.C.), have made clear they have their own ideas, arguing that certain provisions like no taxes on tips or overtime are not as pro-growth. Johnson told POLITICO that these provisions are making a case to increase the labor supply, but he prefers to extend the current tax law. Tillis has also been pushing to make changes to the overtime provision, suggesting it should apply only to those working over 40 hours a week. Meanwhile, House Republicans are preparing to revise some language in their bill to ensure compliance with the budget reconciliation process. They plan to use a procedural maneuver within the Rules Committee to avoid a standalone vote on a revised measure. House Republican leaders expect a report on potential Senate issues by Tuesday morning, though they may not have the full list before the Rules hearing later that day. Speaker Mike Johnson acknowledged that while there may be some surprises, they are part of the legislative process. Additionally, the House Rules Committee is scheduled to vote on the White House’s rescission package, which could lead to a floor vote by Thursday. The committee is also preparing to consider a landmark cryptocurrency bill, with Senate Majority Leader John Thune wanting to pass stablecoin legislation as soon as Wednesday. A series of Trump administration officials will also testify before House and Senate committees on the president’s fiscal 2026 budget requests, including Defense Secretary Pete Hegseth, Joint Chiefs of Staff Chair Gen. Dan Caine, NIH Director Jay Bhattacharya, CIA Director John Ratcliffe, and Energy Secretary Chris Wright.