Senate GOP Bill Deepens Medicaid, Energy Cuts

Senate Republicans have released their version of President Donald Trump’s tax and spending bill, which features deeper Medicaid cuts than the House bill by lowering the provider tax cap, tightening eligibility, and adding work requirements, resulting in reductions surpassing $700 billion. The bill maintains the $10,000 cap on state and local tax (SALT) deductions instead of making the deduction permanent, diverging from the House approach. It also repeals more clean energy tax credits than the House version, further rolling back incentives from President Biden's Inflation Reduction Act. These changes have led to strong opposition from Democrats and some Republican senators, particularly those concerned about impacts on rural hospitals and low-income Americans’ coverage. Internal GOP divisions over Medicaid provisions threaten the bill’s passage, as leaders require near-unanimous support due to their slim majority. The final outcome remains uncertain as Republicans seek to avoid a prolonged debate that could risk a US default later in the summer.