The Senate Finance Committee announced its proposed changes to the version last by the Chamber of the “Great and Beautiful bill” of President Donald Trump on Monday night, which could put the two chambers in a collision course.
The Senate proposal reflects an extension of Trump’s tax cuts 2017, an increase in the debt limit to avoid possible breach in late this summer and cuts Medicaid.
Chamber leaders have warned senators to make minimum changes in the bill to ensure that it can be approved, given the thin margin of shaving in the lower chamber. There are also several senators who have conditioned their support for this bill on certain proposals in the Senate bill version.
The Republicans of the Senate met Monday night behind closed doors to review the proposal.
The Capitol is seen in Washington, on June 9, 2025.
J. Scott Applewhite / AP
Here are potential award points:
State and local tax tax
The legislation of the Senate as written would maintain the limit of state and local tax deductions (PALT) at $ 10,000 per year, while the Chamber’s bill offers deductions of up to $ 40,000 per year for those who earn less than $ 500,000 per year.
Some Republicans of the House of Representatives have said that they will not vote in the final bill if the deduction is less than the $ 40,000 that they negotiate carefully.
Senators have said that the $ 10,000 limit is currently only a position score, it is not finished and is still being negotiated. The inclusion of a value allows the non -partisan Congress budget office to begin to write down the bill, but the senators say that the score could be modified as the salt lid changes.
“I called the salty and said: ‘Hey, don’t go nuclearly,” said Senator Markwayne Mullin party, who has been a key mediator between the camera and the Senate. “We had to put something there because we are still negotiating from one place to another.”
The leader of the majority of the Senate, John Thune, answers a question from the media while walking to his office at the Washington Capitol, on June 5, 2025.
Shawn Thew/EPA-EFE/Shuttersock
Disease insurance
Similar to the camera version, the Senate bill implements the work requirements about Medicaid for “capable body adults who choose not to work and do not have dependent children or older parents under their care.”
It also increases the frequency of eligibility verifications for adults with capable body.
Healthy adults without dependents can work, participate in a job training program, register in school or be volunteers for 20 hours per week to receive the cover of taxpayers subsidized.
It also ends the payments of Medicaid financed by taxpayers for abortion services and gender transition procedures and guarantees that immigrants who lack permanent legal status do not receive benefits from Medicaid.
The biggest difference between Chamber and Senate plans to reduce “waste, fraud and abuse” in Medicaid involves the supplier tax, a tax imposed by the State on medical care providers used mainly to help finance the state programs of Medicaid. From 2027, Senate legislation would reduce the taxes of the medical care provider in the states that chose to expand Medicaid to 3.5%, below 6% in the Chamber’s bill, which means that the load of the states to finance Medicaid could be higher under the version of the Senate.
Taxes
The Senate version permanently extends Trump’s tax cuts 2017, something that Senate Republicans say it is essential for companies and families that seek to plan the future.
Nor does it include taxes on tips or taxes on extra hours, a key priority of Trump. The bill allows deductions of up to $ 25,000 in qualified tips and deductions of up to $ 12,500 in extra time. Meanwhile, the house version does not have an explicit limit in overtime advice and deductions.
The Senate bill would also offer older people a new tax deduction of $ 6,000, more generous than the deduction of $ 4,000 in the Chamber version.
It would also make the diverse and other permanent tax incentives, including the spending of investments in equipment and research and development.
The president of the House of Representatives talks about his discussions with Elon Musk this week while he meets journalists to discuss the work on the bill of tax exemptions and expenses of expenses of President Donald Trump, in the Washington Capitol, on June 4, 2025.
J. Scott Applewhite / AP
Children’s fiscal credit
The Senate bill supports the fiscal credit of the children of $ 2,500 in the version of the House of Representatives at $ 2,200 per child. Like the house, it excludes families without income.
The bill also establishes savings accounts for newborns, similar to the Chamber’s bill.
Debt limit
The Senate package includes an increase of $ 5 billion to the federal debt limit, higher than the $ 4 billion from the camera. Congress must act before autumn principles to increase the debt limit or risk breach.
Republican senator Rand Paul has made it clear that he will not support a package with an increase in the debt limit. The inclusion of this provision means that Republicans will probably lose their vote.
Eliminating the tax credits of IRA
The version of the Senate phase to the fiscal loans of solar energy that were part of the Law to reduce inflation at a slower pace than the version of the Chamber by allowing more projects to access the credits before they finish.
The Senate bill also eliminates hundreds of billions of dollars of Ira subsidies, such as immediately putting the fiscal credit of electric vehicles and its “lease escape”, similar to the camera bill.
