Senate Republicans Challenge House Tax, Medicaid Plans

Republican efforts to pass President Donald Trump’s comprehensive legislative package, known as the “big beautiful bill,” face significant challenges in both the House and Senate due to internal disagreements. The bill, which aims to cut taxes by hundreds of billions and reduce Medicaid spending, has divided Republicans, with fiscal hawks like Sen. Ron Johnson demanding deeper spending cuts and others, including senators representing rural states, expressing concern over potential harm to Medicaid beneficiaries and rural hospitals. Senate Republicans have signaled they will rework the House bill, particularly criticizing the proposed Medicaid changes, such as increased cost-sharing and limitations on health care provider taxes, which could result in millions losing coverage according to a Congressional Budget Office analysis. Additionally, there is opposition to the bill’s phaseout of renewable energy tax credits and skepticism about its effectiveness in reducing the federal deficit. Speaker Mike Johnson has been tasked with securing enough votes in the House, but any Senate amendments will require reconciliation, complicating the timeline to pass the legislation before mid-July to avoid a debt default. Key Senate Republicans, including Josh Hawley, Rand Paul, Lisa Murkowski, and Susan Collins, remain potential holdouts, underscoring the fragility of the GOP consensus on this ambitious agenda.