What's In and Out of Trump's Big Bill as Senate Races to Meet Fourth of July Deadline
President Donald Trump insists that no one goes on vacation until the 'big, beautiful bill' reaches his desk by the Fourth of July deadline. Republicans in Congress are complying, with the Senate preparing for weekend work and House Speaker Mike Johnson advising representatives to maintain schedule flexibility.
Senate Majority Leader John Thune (R-S.D.) expressed optimism about Senate passage by the end of the week, followed by swift House action. However, the Republican majority in both chambers is facing challenges in implementing their proposed cuts to federal programs, including Medicaid and SNAP, due to internal disagreements and procedural obstacles. Democratic opposition further complicates matters, leaving GOP leaders scrambling before the final votes.
The bill's main objective is to prevent a potential tax hike by extending Trump-era tax cuts set to expire. It aims to make current tax rates permanent and introduce temporary new ones, including tax exemptions for tips, overtime pay, and some auto loans, alongside an increased deduction for seniors. The Congressional Budget Office (CBO) projects varying impacts across income levels, with the wealthiest benefiting most and the poorest experiencing a negative effect. The bill also increases the child tax credit but restricts access for lower-income families. A point of contention is the cap on state and local tax (SALT) deductions.
Beyond tax cuts, the bill allocates substantial funding toward Trump's border security agenda, including increased ICE staffing, detention beds, and grants for states assisting with deportations. It also finances the 'Golden Dome' missile defense system and Trump's proposed 'National Garden of American Heroes.'
To offset the cost of tax cuts, Republicans propose reductions to Medicaid, SNAP, and green energy incentives. They argue these changes are necessary to address waste and refocus programs on their intended beneficiaries. The proposed changes include stricter work requirements for Medicaid and SNAP recipients, potentially affecting millions. Additional Medicaid changes are being debated, including adjustments to the provider tax that have raised concerns among some GOP lawmakers about the impact on rural hospitals.
The CBO estimates these cuts would save approximately $1.3 trillion over a decade. The overall cost of the bill, including tax cuts and spending, is estimated at $3.8 trillion over ten years by the CBO, with the Senate version slightly higher. Senate Republicans are using a strategic accounting method that excludes existing tax breaks from the cost calculation, leading to a lower figure. This discrepancy has drawn criticism from Democrats and budget watchdog groups. Trump, currently in Europe, has urged senators to expedite the bill's passage.
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