Senate Finance Committee Chair Mike Crapo (R-Idaho) confirmed Tuesday that his panel will not formally review the GOP tax package recently released by the committee, opting instead to send it directly to the Senate floor as part of the GOP’s broader legislative effort. While Crapo maintains that this decision is unrelated to opposition within the committee, speculation suggests that Senator Ron Johnson (R-Wisconsin), a key swing vote and vocal critic, may have influenced the move.
The Senate package introduces an endowment tax hike for private institutions, though it is more modest than the House version. Additionally, it eliminates the proposed logo and licensing income tax included in the House’s provision.
The committee’s proposal also contains controversial Medicaid and debt ceiling provisions. One key Medicaid-related measure would gradually reduce most states’ ability to impose provider taxes on hospitals and other health care providers, capping the rate at 3.5% by 2031—down from the current 6% limit. However, this restriction would only apply to the 40 states and the District of Columbia that have expanded Medicaid for low-income adults.
For states that have not expanded Medicaid—primarily GOP-led—new provider tax rate increases would be restricted but would not face as drastic an impact. The Senate package also introduces stricter Medicaid work requirements, mandating that parents with children aged 15 and older engage in work, volunteer activities, school, or job training for at least 80 hours a month to maintain benefits. The House version had exempted parents of dependent children from this requirement.
Regarding the debt ceiling, the Senate committee proposes a $5 trillion increase, surpassing the House’s $4 trillion adjustment. This provision is designed to extend the timeframe for President Trump’s policy implementation, reducing the necessity for negotiations with Democrats over the cap.
If the committee’s proposal withstands scrutiny under the Senate Byrd Rule process, it will be incorporated into the “Big, Beautiful Bill” package, requiring only a simple majority to pass. GOP leaders aim to send the bill to President Trump by July 4, though some lawmakers have voiced concerns about the ambitious timeline.