Senate Finance Committee unveils Trump budget bill with Medicaid cuts, tax changes

The Senate Finance Committee, led by Republicans, unveiled its version of President Donald Trump’s "Big, Beautiful Bill," focusing on extending the 2017 Tax Cuts and Jobs Act permanently, instituting work requirements in Medicaid, and proposing deeper Medicaid cuts than those approved by the House. The committee maintained the $10,000 cap on state and local tax (SALT) deductions, rejecting the House’s compromise to raise the cap to $40,000 for married couples earning $500,000 or less, a move that has drawn criticism from lawmakers in high-tax states. Senate Republicans emphasize reducing spending on programs linked to the "Green New Deal" and addressing fraud and waste in spending, while protecting vulnerable populations. Despite House Speaker Mike Johnson’s plea to keep the bill largely intact, the Senate is making notable alterations, especially regarding Medicaid and tax provisions. The American Hospital Association is reviewing the Senate’s draft legislation, which includes additional restrictions on state-directed payments and provider taxes. Both chambers aim to finalize the bill ahead of a July 4 deadline to enact President Trump’s economic agenda.