 "The U.S Capitol. Reuters")
Senate Republicans are grappling with growing internal divisions over a revised version of former President Donald Trump’s sweeping second-term legislative agenda, informally dubbed the “One Big Beautiful Bill.”
The latest proposal, unveiled by the Senate Finance Committee, outlines a $5 trillion increase to the nation’s borrowing authority, $1 trillion more than the House version, setting the stage for a potential standoff between the two chambers of Congress.
Though most Senate Republicans exited a closed-door briefing without publicly opposing the measure, several are raising serious concerns, casting doubt on whether the bill has enough support to pass. Senate Majority Leader John Thune can afford to lose only three Republican votes on the Senate floor, and while no senators have explicitly pledged to vote against it, the vocal unease suggests a rocky path forward.
House, Senate diverge on key provisions
A major source of contention lies in the bill’s fiscal and healthcare measures. The Senate version includes stricter Medicaid changes than the House’s, in addition to preserving the $10,000 cap on state and local tax (SALT) deductions, a sticking point for moderate House Republicans from high-tax states who had secured a deal to raise the cap to $40,000 in their chamber’s version.
The Senate bill also proposes phasing out green energy tax credits and making permanent the corporate tax cuts enacted in 2017 during Trump’s first term. It includes a campaign pledge to shield tipped workers’ income from federal taxation.
Medicaid cuts prompt GOP pushback
One of the most contentious provisions is the reduction of healthcare provider taxes in Medicaid expansion states from 6% to 3.5% by 2031. Critics say the current tax model allows states to artificially increase their federal reimbursements, an approach some Republicans label “money laundering.” However, slashing provider taxes could punch holes in state Medicaid budgets and impact hospital funding, especially in red states.
Additionally, the Senate proposal would block non-expansion states from raising provider tax rates to draw more federal dollars. Two GOP aides noted the draft legislation goes further than the House version in tightening Medicaid eligibility requirements, a move the White House has cautiously supported to reduce potential program abuse, while still upholding Trump’s pledge to protect federal health benefits.
Impact Shorts
More ShortsCBO flags $863b in Medicaid, CHIP cuts
The Congressional Budget Office estimates that the House version of the bill would cut $863 billion from Medicaid and the Children’s Health Insurance Program (CHIP) over the next decade. The figure is likely to intensify scrutiny from within the Republican Party and draw significant public attention, especially from healthcare advocates and state officials.
Security concerns rise amid legislative tensions
Amid the policy debates, lawmakers are also confronting rising safety concerns. In the wake of recent shootings involving two Minnesota state legislators and their spouses, incidents that left two people dead, members from both parties are calling for improved security measures for Congress and their families.
Discussions involving House and Senate leadership, the U.S. Capitol Police, and other officials are underway as tensions on Capitol Hill continue to rise.