WASHINGTON – Senate Republicans are proposing deeper cuts to Medicaid than the House of Representatives' recently passed budget bill to help pay for President Donald Trump's major tax cuts under a budget plan released on June 16.
The measure released by GOP leaders serving on a key panel responsible for writing the nation's tax laws also seeks a more limited tax cut for tips and overtime than the House, changing one of Trump's most recognizable 2024 campaign promises.
Setting up a showdown with the Republican-led House, which adopted its own version of Trump's so-called "big beautiful bill" in late May, the Senate Finance Committee would not increase the federal deduction for state and local taxes from $10,000 to $40,000 for people earning less than $500,000 per year. Senate Republicans plan to continue to negotiate changes to the so-called SALT tax deduction.
The proposal is the culmination of weeks of negotiations among Senate Republicans on the GOP bill that would be Trump's biggest legislative accomplishment in his second term thus far. Senators have been pushing to complete work on the package by July 4, before reconciling changes with the House and passing the bill before August.
