Senate Republicans Push Massive Spending and Tax Bill Towards July 4 Deadline
Senate Republicans Push Massive Spending and Tax Bill Towards July 4 Deadline
Senate Republicans are poised to begin votes on a sweeping spending and tax cut package this weekend, aiming to pass key elements of President Trump’s domestic agenda before a self-imposed July 4 deadline. The updated ‘megabill’ largely mirrors legislation narrowly passed by the House in May, featuring an extension of Trump’s 2017 tax cuts, increased funding for border security, defense, and energy production.
The legislative process is expected to include an open-ended series of amendments that could extend into Sunday, potentially leading to further modifications. Despite broad agreement on priorities, divisions persist within the GOP over funding mechanisms. The Senate’s version differs from the House bill in several areas, including a higher proposed increase to the debt limit and significant changes to Medicaid. Provisions deemed not compliant with reconciliation rules by Senate Parliamentarian Elizabeth MacDonough have been removed, streamlining the path for a simple majority vote.
Key changes in the Senate bill include temporary tax incentives like deductions for tip wages and overtime pay, an increased child tax credit, and a permanent expansion of the standard deduction. The bill proposes raising the national debt limit by $5 trillion, a critical move to allow the government to meet existing obligations and avoid a potential default. Reforms to the Supplemental Nutrition Assistance Program (SNAP) include expanded work requirements and increased state cost-sharing, while the contentious State and Local Tax (SALT) deduction cap would be temporarily lifted for certain married couples.
Medicaid faces proposed changes requiring work for able-bodied adults and a gradual reduction in the tax states can impose on providers, although a new $25 billion fund is included to support rural hospitals. Other consistent elements across both chambers’ bills include billions for border security, new immigration fees (with some asylum fees removed by the parliamentarian), and a significant overhaul of student loan repayment options, replacing existing programs with new standard and income-based plans. The Senate bill also allocates $500 million for broadband access, with a controversial condition preventing states from regulating AI for 10 years if they receive the funding.
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