In an unusual turn of events, the Senate is poised to work through the weekend as Republicans scramble to meet President Donald Trump's July Fourth deadline for his comprehensive package of tax cuts and spending reductions.
Despite facing political and policy hurdles, the Republicans are leveraging their congressional majorities to overcome Democratic resistance. However, not all GOP members are in agreement with the proposed cuts to Medicaid, food stamps, and other programs, which are intended to offset the cost of Trump's $3.8 trillion tax breaks.
According to the Associated Press, the 940-page bill was unveiled just before midnight on Friday. A procedural vote was anticipated on Saturday to initiate debate on the legislation, but the timing remained uncertain. The path forward is fraught with at least 10 hours of debate and an overnight voting session on numerous amendments.
The bill's passage through the Senate could take several days, and it would need to return to the House for a final round of votes before reaching the White House.
Senate Majority Leader John Thune, R-S.D., commented on the fluid nature of the situation, stating, "It's evolving." The weekend session could prove pivotal for Trump's party, which has staked much of its political capital on his signature domestic policy plan.
Despite occasional mixed signals about allowing more time, Trump is pressuring Congress to expedite the process. In recent White House events, he has urged GOP holdouts to align with the party. "We can get it done," Trump declared in a social media post, adding, "It will be a wonderful Celebration for our Country."
The proposed legislation is a complex amalgamation of GOP priorities. It aims to make permanent many of the tax breaks from Trump's first term that would otherwise expire by year's end if Congress fails to act, potentially leading to a tax increase for Americans.
The bill also proposes new tax breaks, including tax-free tips, and allocates $350 billion to national security, including Trump's mass deportation agenda. However, the spending cuts that Republicans are relying on to compensate for the lost tax revenues are causing discord within the GOP ranks.
Some lawmakers argue that the cuts are excessive, particularly for those receiving healthcare through Medicaid. On the other hand, conservatives concerned about the nation's debt are advocating for more drastic cuts.
Sen. Thom Tillis, R-N.C., expressed his reservations about the package's fundamentals and stated he would not support the procedural motion to begin debate. "I'm voting no on the motion to proceed," he said. Sen. Ron Johnson, R-Wis., who is advocating for deeper cuts, stated he needed to review the final legislative text. The release of the draft had been delayed as the Senate parliamentarian reviewed the bill to ensure it complied with the chamber's strict "Byrd Rule," named for the late Sen. Robert C. Byrd, D-W.Va.
This rule largely prohibits policy matters from being included in budget bills unless a provision can secure 60 votes to overcome objections. Given the Senate's 53-47 GOP advantage and the Democrats' unified opposition to Trump's bill, this would be a significant challenge.
The Republicans encountered a series of setbacks after several proposals were deemed non-compliant by the chief arbiter of the Senate's rules. These included a plan to shift some food stamp costs from the federal government to the states and another to dismantle the funding structure of the Consumer Financial Protection Bureau. However, Republicans quickly revised and reinstated these proposals.
The final text includes a proposal for cuts to a Medicaid provider tax that had faced parliamentary objections and opposition from several senators concerned about the future of rural hospitals. The revised version postpones the start date for these cuts and establishes a $25 billion fund to support rural hospitals and providers.
The nonpartisan Congressional Budget Office (CBO) has indicated that under the House-passed version of the bill, approximately 10.9 million more people would be without healthcare, and at least 3 million fewer would qualify for food aid. The CBO has not yet publicly assessed the Senate draft, which proposes steeper reductions. According to the CBO, top income-earners would receive about a $12,000 tax cut under the House bill, while the poorest Americans would face a $1,600 tax increase.
One unresolved issue is the so-called SALT provision, a deduction for state and local taxes that has been a top priority for lawmakers from New York and other high-tax states. The current cap is $10,000. The White House and House Republicans had agreed on a plan for a $40,000 cap, but for five years instead of 10. Republican senators argue that this is too generous. At least one House GOP holdout, Rep. Nick LaLota of New York, stated he could not support the compromise.
Senate Democratic leader Chuck Schumer of New York criticized Republicans for rushing to finalize the bill before the public fully understands its contents. "There's no good reason for Republicans to chase a silly deadline," Schumer said. House Speaker Mike Johnson, who sent his colleagues home for the weekend with plans to be on call to return to Washington, said they are "very close" to finishing up. "We would still like to meet that July Fourth, self-imposed deadline," said Johnson, R-La.
With the Republicans' slim majorities in the House and Senate, leaders need almost every lawmaker on board to ensure passage. Johnson and Thune have remained in close contact with the White House, relying on Trump to pressure holdout lawmakers. As the Senate gears up for a weekend of intense deliberation, the fate of Trump's ambitious tax and spending package hangs in the balance.
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