Washington – The Senate Republicans published the latest version of President Trump Massive expenses and tax invoice Friday night While the GOP looks at an ambitious deadline of July 4 to approve the legislation on the centerpiece of the president’s agenda.
After the house has narrowly approved the legislation This deals with the tax, borders and energy priorities of the president last month, the Senate Republicans put their mark on the bill. But the leaders of the GOP are looking for common ground to appease the upper room without alienating the Republicans of the Chamber, which must approve the changes to the Senate before the bill can go to the president’s office for its signature.
At the center of the bill is an extension of Mr. Trump Law on tax reductions 2017, planned at sunset at the end of the year, seeking make the cuts permanent In what was a key priority for the Senate Republicans. It also includes increased expenses for border safety, defense and energy production, which are partially offset by cuts in health and nutrition care programs.
But with different dynamics in the Senate, the Republicans also faced the contribution of the Senate regulations, known as the parliamentarian. It weighed on the components of the bill to determine if they can fly within the framework of the reconciliation process, which allows the GOP to move forward with the bill without any support of the whole aisle.
Here is what is in the updated version of the Senate of “Big, Beautiful Bill”, some of which remain in flow:
Medicaid restrictions
Legislation includes Medicaid restrictions, which provides government -sponsored health care for low -income and disabled Americans. As the bill adopted by the Chamber, legislation requires work requirements for certain valid adults and more frequent eligibility checks. But the Senate parliamentarian determined The fact that a measure reduced federal funds to states that use Medicaid infrastructure to provide health care coverage to undocumented immigrants, while prohibiting Medicaid from covering gender transition services, does not comply with the rules of the Senate.
The parliamentarian has also weighed on the providers’ tax, which states use to help finance their part of Medicaid costs, in a blow for the initial plan of the GOP Senate.
The Senate Republicans have proposed stronger reductions in Medicaid financing, partly by gradually reducing service providers from 6% to 3.5% by 2032. The calendar is delayed by one year compared to the initial GOP Senate proposal, after the question has become one of the collision points of the bill in the Senate in recent weeks. This is a gap in relation to the bill sentenced to the House, which sought to reduce federal costs by freeing the taxes of states providers at current rates and prohibiting them from establishing new service providers.
The bill also includes a rural hospitals stabilization fund after some GOP senators are worried about how rural hospitals could be affected by Medicaid restrictions, allocating $ 25 billion to rural hospitals during the same period as provider of providers would be reduced.
Increase state and local tax deduction, or salt
The package also includes an increase in the ceiling on the state and the local tax deduction, by bringing it from $ 10,000 to $ 40,000. After five years, he would return to $ 10,000, a departure from the house bill.
The problem was a major point of collision in the House, where the Blue State Republicans threatened to hold their support without increasing the deduction. But without Republicans from the Blue States in the Senate, the upper room faced its own dynamics.
Before the rule, taxpayers could deduce all their state taxes and premises from their federal taxes, who, according to some decision -makers, mainly benefit rich owners in high tax states, such as New York and California. But defenders of the increase in caps argue that the $ 10,000 ceiling has an increasing impact on the owners of the middle class who live in regions where land taxes increase.
Restrictions on food coupons
The Senate bill always moves the costs of the additional nutritional aid program, also known as Snap, or food coupons, in certain states. The program is currently entirely funded by the federal government.
The federal government would continue to fully finance the advantages of states which have an error payment rate of less than 6%, from 2028. States with error rates above 6% would be on the hook for 5% to 15% of costs. States also have a certain flexibility in the calculation of them.
However, Alaska and Hawaii would receive temporary exemptions from the requirement for cost sharing. The two states would receive a two -year reprieve if the Ministry of Agriculture determines that they “actively implement a corrective action plan”.
The package is also aligned with the version of the house with the age requirements for valid adults to qualify for the SNAP advantages. Currently, in order to qualify, valid adults between 18 and 54 must meet the work requirements. The bills of the Senate and the Chamber would update age requirement at 18-64, with some exemptions for parents.
Alaska and Hawaii could also receive derogations from work requirements if they have determined that they make a “good faith effort” to comply.
Approach the debt limit
The legislation would increase the debt ceiling by 5 billions of dollars, going beyond the 4 billions of dollars described in the bill adopted by the Congress, while the Congress faces a deadline to respond to the limit of debt later this summer.
The secretary of the Treasury, Scott Bessent, urged the congress to approach the limit of the debt in mid-July, stressing that the United States could be unable to pay his bills in August, when the congress is in recess.
Addressing the debt ceiling as part of the wider package, the Republicans in the Congress aim to bypass negotiations with the Democrats on the issue. Unlike most other Senate laws, the budgetary reconciliation process that governs the package requires a simple majority, rather than the 60 -one threshold to move forward with a bill.
Children’s tax credit
The current children’s tax credit of $ 2,000 is expected to return to $ 1,000 in $ 1,000 in 2026. The tax credit would permanently increase to $ 2,200 under the Senate invoice, $ 300 less than increase in the room. The version of the house makes the increase at $ 2,000 after 2028.
Limits on overtime and deductions
The bill would allow individuals to deduct up to $ 25,000 for tips and $ 12,500 for overtime. But the provisions would expire in 2028. The Senate bill would reduce deductions for people earning more than $ 150,000, while the Bill of the Chamber does not include income limits.
Standard deduction changes
The Senate wishes to permanently extend the basic standard deduction, which was almost doubled in 2017. The increases will expire at the end of the year. The House bill, however, would only widen the deduction until 2028.
Asylum fees
The legislation also includes minimum costs of $ 100 for those looking for asylum, down compared to the costs of $ 1,000 described in the Bill of the Chamber. The Senate parliamentarian excluded the costs of $ 1,000 for anyone asking for asylum fees and other costs on diversity immigrant visas.
Mailratory of AI
A revised proposal over a 10 -year moratorium on state regulations on artificial intelligence has also made the Senate bill. The update provision provides federal aid to the States as long as they do not regulate AI. According to the Democrats of the Senate Budget Committee, the parliamentarian determined that the provision has remained in compliance “as long as the conditions apply only to the $ 500 million provided by the reconciliation bill”.
Public lands
The Senate version would order the sale of up to 0.5% of public land in 11 states, including Alaska, Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Washington and Wyoming. Eligible land should be located less than 5 miles from a population center and the sale of land protected by the federal government is prohibited.
Supporters of the provision indicate that it would address the availability of housing and the affordability crisis.
