Senate Finance Committee Releases Revised Trump Tax, Medicaid Bill

The Senate Finance Committee unveiled its version of President Trump’s "Big, Beautiful Bill," which includes making many 2017 tax cuts permanent, but scales back some provisions compared to the House version, such as lowering the child tax credit increase to $2,200 from $2,500 and capping SALT deductions at $10,000 instead of the House's $40,000. The Senate bill also proposes deeper Medicaid cuts, including lowering the provider tax cap to 3.5% by 2031 for Medicaid expansion states, a stricter reduction than the House's freeze at 6%, raising concerns about impacts on rural hospitals. Senate Republicans face potential clashes with the House, which has warned them to keep changes minimal to avoid defections, as the House passed the bill narrowly and some members strongly oppose lower SALT caps. The Senate version softens the phase-out of solar energy tax credits compared to the Inflation Reduction Act, allowing more projects to qualify before credits end. Republican leaders are now working to secure sufficient votes to pass the legislation before the July 4th recess, with the bill aiming to prevent a $4 trillion tax hike and extend critical tax reliefs to support middle-class families and economic growth. These developments set the stage for negotiations as both chambers seek to reconcile differences before sending the final bill to President Trump for signature.