Senate Republicans on Monday released a draft of President Donald Trump’s “big, beautiful bill,” revealing proposals for deeper Medicaid cuts, including new work requirements for parents of teenagers, to offset the costs of making Trump’s 2017 tax breaks permanent.
The legislation aims for a swift passage by Trump’s Fourth of July deadline.
The Senate draft largely maintains the existing $10,000 deduction for state and local taxes (SALT), drawing immediate criticism from GOP lawmakers in high-tax states who had advocated for a $40,000 cap. Negotiations on this point are expected to continue.
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In a move to enhance benefits for seniors, the bill proposes a new $6,000 deduction for low- to moderate-income senior households earning up to $75,000 for singles and $150,000 for couples.
The comprehensive package, unveiled by Senate Finance Committee Republicans, provides the most detailed look yet at the Senate’s proposed changes to the House-approved bill. Senator Mike Crapo, R-Idaho, chairman of the committee, stated the proposal would prevent a tax hike and achieve “significant savings” by cutting green energy funds and targeting waste, fraud, and abuse.
The Congressional Budget Office (CBO) previously estimated the House-passed version would add $2.4 trillion to the national deficit over a decade and leave 10.9 million fewer people with health insurance. The CBO also projected the wealthiest households would see the largest tax breaks, while the poorest would experience a tax hike.
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Both the House and Senate packages include a substantial $350 billion increase for Homeland Security and the Pentagon, with $175 billion earmarked for Trump’s mass deportation efforts, including hiring 10,000 more ICE officers. This comes amid nationwide protests against migrant deportations and concerns from deficit hawks like Senator Rand Paul.
Senate Democratic Leader Chuck Schumer condemned the Senate GOP’s draft, stating its “cuts to Medicaid are deeper and more devastating than even the Republican House’s disaster of a bill.”
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The Senate’s proposed Medicaid changes include broadening work requirements to parents of children older than 14, extending beyond the House’s exemption for parents with dependents. Individuals would need to work 80 hours a month or engage in community service to qualify for Medicaid and SNAP benefits.
Senator Josh Hawley (R-MO) expressed concern over proposed changes to the provider tax, warning of negative impacts on rural hospitals. RELATED: Missouri Sen. Hawley, Speaker Johnson At Odds Over Medicaid Cuts In Trump’s “Big Beautiful Bill”
The bill also seeks a slower phase-out of some Biden-era green energy tax breaks, while immediately eliminating tax breaks for electric vehicles. Some conservative Republicans argue the cuts do not go far enough and oppose the bill’s provision to raise the national debt limit by $5 trillion.
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