Senate GOP wants deeper Medicaid cuts to offset Trump’s “big, beautiful bill” tax cuts
Senate Republicans made a deep proposal Monday Medicaid cutas a way to offset the costs of making President Donald Trump’s tax cuts more permanent with bills revealed for him, including new labor requirements for teenage parents. “A big and beautiful bill.”
The proposal from Republicans maintains the current $10,000 deduction for state and local taxes called salt, and has been hit quickly by GOP lawmakers in New York and other high-tax states.Fighted with a $40,000 capWith the bill that was passed. The senators argued that negotiations would continue.
The Senate draft also strengthens Trump’s proposed new tax credit for seniors, with a larger $6,000 deduction for low-to-medium high-income households making under $75,000 per year for singles and $150,000 for couples.
The text revealed by Republicans on the Senate Treasury Committee provides the most comprehensive look for changes GOP Senators want to make into a 1,000-page package.It was approved by House Republicans last month. GOP leaders are pushing to quickly track the bill for Trump’s July 4th deadline vote.
Chairman Sen. R-Idaho said the proposal would reduce the green energy fund and target waste, fraud and abuse, preventing tax hikes and achieving “significant savings.”
It comes as an AmericanSignificant supportAccording to a poll from the popular safety net program, funding levelsAssociated Press-NORC Civil Service Research Center. Many Americans consider Medicaid and the Food Aid program to be underfunded.
So far, what are the big bills?
Trump’s big bill is at the heart of his domestic policy agenda and a mound of GOP priorities.Unified opposition from the Democrats– High orders for the slowly moving Senate.
The basics of the package are some extensionsTax credit: $4.5 trillionIf approved during his first term in 2017 and Congress fails to act, it will expire this year. There are also newer things like no tax on tips and program cuts of over $1 trillion.
After the house passes the version,Non-partisan Congressional Budget BureauThe bill estimated that it would add $2.4 trillion to the national deficit over the decade, with 10.9 fewer people without health insurance, primarily due to proposed new work requirements and other changes.
The largest tax credit of about $12,000 a year isThe wealthiest householdCbo said the poorest people are seeing tax increases of around $1,600. Middle-income households have a tax deduction of between $500 and $1,000 a year, the CBO said.
Both the House and Senate packages are focusing on a large scaleAccumulation of $35 billionHomeland Security and the Pentagon Funding. This includes around $175 billion for Trump’s massive deportation efforts, including hiring 10,000 officers for immigration and customs enforcement.
This is because last week’s protests against deportees in Los Angeles, including Sen. Alex Padila’s stunning handcuffs, erupted nationwide, and as deficit Hawks such as Kentucky Sen. Rand Paul questioned the enormous spending on homeland security.
Senate Democratic leader Chuck Schumer warned that the Senate GOP draft was “deep and devastating than the disaster of the Republican House bill.”
Invoice Risk GOP Support Tradeoffs
As the package now moves to the Senate, changes to the Medicaid, salt and green energy programs are part of a series of trade-offs that GOP leaders attempt to pass the package with a slim majority, and rarely vote.
But criticism of the Senate version came soon after House Speaker Mike Johnson warned the Senators with major changes.
“We have made it clear that we have negotiated in good faith with our speakers and that the White House must remain on the final bill,” House Salt Caucus co-chairs Young Kim, R-Calif and Andrew Garbarino (RN.Y.) said in a joint statement Monday.
Posted by New York Republican Rep. Nicole Mariotakis x “The $10,000 cap on the Senate bill was not only shaming, but also slapped face-to-face with the White House and a triple Republican quarters.”
Medicaid and Green Energy Reduction
Some of the biggest cost savings in the package come from a GOP plan to impose new work requirements on healthy single adults, without dependents, who receive Medicaid, a healthcare program used by 80 million Americans, between the ages of 18 and 64, without dependents.
The House first proposed new Medicaid job requirements, but exempts dependent parents. The Senate version expands the requirement to include parents of children over the age of 14 as part of an effort to combat the waste of the program and promote personal responsibility.
Already, Republicans had proposed expanding job requirements with supplemental nutrition assistance programs. snapincluding parents of older Americans up to the age of 64 and school-age children over the age of 10. The house had requirements on parents of children over the age of seven.
People need to work 80 hours a month or engage in community service programs to qualify.
One Republican Missouri Sen. Josh Hawley has joined several others pushing to save Medicaid from sudden cuts.
The Senate plan proposes phased out its provider tax, up to 6% now. From 2027, the Senate aims to gradually lower that threshold until it reaches 3.5% in 2031, with the exception of nursing homes and intermediate care facilities.
Holy condemned the Senate bill’s provider tax changes. “This requires a lot of work. It’s really concerning and I’m really surprised by it,” he said. “Country hospitals will be in bad condition.”
The Senate is also maintaining a new $35 co-payment of $35 per $35 imposed on poor patients proposed in the House.
And Senate Republicans are delaying phase-out during the Biden eraGreen Energy Tax CreditTo allow for the continued development of wind, solar and other projects that Congress’ most conservative Republicans want to finish faster. Tax cuts on electric vehicles will be eliminated soon.
Conservative Republicans say overall cuts aren’t going well enough, and they oppose the bill’s provisions and allow them to pay the bill by increasing the national debt limit by $5 trillion.
“There’s a way to continue doing this,” said Sen. R-Wis.
This story was originally introduced Fortune.com