Senate Republicans are in a hurry to push through a budget bill that’s crucial for President Trump’s second-term plans. They aim to pass it by July 4, which they set as a tight deadline. The party is working hard to get a vote on the "Big Beautiful Bill" by Saturday, especially after releasing a hefty 940-page document shortly after midnight.
The main issue? Republicans are split on how much to cut welfare programs to afford approximately $3.8 trillion in tax breaks. The House of Representatives narrowly approved the bill two weeks ago.
In a recent memo to Senate offices, the White House backed the bill and stressed that rejecting it would be a huge mistake. Senate Majority Leader John Thune called the planned Saturday vote "aspirational," as there’s still uncertainty about party unity. Senator Ron Johnson from Wisconsin even announced he would vote "no," claiming he needs more time to read the bill he received at 1:23 AM.
To win over some reluctant Republicans, the latest version of the bill includes more funding for rural hospitals after moderates raised concerns about its impact on their constituents. It also addresses the contentious State and Local Taxes (SALT) cap. Currently, taxpayers can only deduct up to $10,000 in federal taxes, but the new bill raises the limit to $40,000 for married couples earning under $500,000. However, this higher cap will drop back to $10,000 after five years.
The bill also proposes changes to the Supplemental Nutrition Assistance Program (SNAP), which helps low-income Americans. Alaska and Hawaii would be temporarily spared from a new requirement for states to partially fund SNAP, a move pushed by their Republican senators.
Core elements of the original bill remain, such as extending tax cuts from 2017 and introducing new ones that Trump campaigned on, including a tax deduction for Social Security benefits. However, it still contains controversial measures that impose restrictions on Medicaid, a program vital for many elderly and low-income Americans. The Congressional Budget Office predicts that around 7.8 million people could lose their health insurance due to these cuts.
Senator Patty Murray, a Democrat from Washington, voiced her concerns online, calling this bill one of the most drastic healthcare cuts in history.
Recent debates show a growing divide within the Republican Party. While some prioritize tax cuts, others emphasize the need for social safety nets. As this situation unfolds, it’s clear that the budget bill’s passage will shape the future of healthcare and welfare policies in the U.S.
For more on Medicaid impacts, check out this report from the Congressional Budget Office.