Skip to content
News and updates

Category: Legislation

Senate Tax Package Update

Posted on

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.

 

 

 

 

 

 

 

 

Posted on

House Republicans passed their multi-trillion-dollar reconciliation package this morning, a major victory for Speaker Johnson and President Trump. The passage comes after weeks of infighting amongst Republicans, with both moderate members and conservative hardliners threatening to withhold their support over certain provisions. Eventually, after a meeting with President Trump and last-minute changes made by Republican leadership, the bill passed by a 215-214-1 vote. Every House Democrat voted no. Reps. Thomas Massie (R-KY) and Warren Davidson (R-OH) were the two Republicans who voted against the legislation. House Freedom Caucus Chair Andy Harris (R-MD.) voted present.

The legislation includes $3.8 trillion in tax cuts and cuts to Medicaid and SNAP coupled with the phase out of clean energy tax credits from the Inflation Reduction Act. These programs were cut in order to offset the impact of the extension of President Trump’s 2017 tax cuts, and the Congressional Budget Office estimates that the bill will result in $698 billion in cuts to Medicaid and $267 billion in cuts to SNAP.

Additionally, the bill makes significant changes to higher education legislation — particularly student borrowing. If signed into law, this package would cap lifetime borrowing for a student or their parents at $200,000 and eliminate entirely subsidized student loans and Grad PLUS loans. The bill also includes changes to Pell Grant eligibility, the creation of a risk-sharing program for universities, and would cap the availability of federal aid to the median cost of a specific program nationally.

The reconciliation package now heads to the Senate for consideration, where it will likely be significantly altered.  While reconciliation bills are not subject to the filibuster in the Senate, meaning only a simple majority is needed for passage, there are stricter rules around what can be included in the Senate. Furthermore, many Senators have expressed misgivings over many of the cuts made by House lawmakers.

 

 

 

CR Adopted, Government Funded… At Least Through March 14

Posted on

Just after midnight Saturday, the Senate cleared by a vote of 85 to 11 the continuing resolution that had been approved by the House just a few hours earlier, sending the measure to The White House for the President’s signature.  The legislative package keeps the government funded through March 14, meaning that Congress will need to tackle the question of how to fund the remainder of FY2025 once again the first part of next year.

Now, It’s the Senate’s Turn

Posted on

After a frantic day of discussions, just after 6 PM ET, the House was finally able to pass a continuing resolution to keep the government funded past midnight.  The House leadership brought the bill up under the suspension of the rules, meaning that it needed the support of two-thirds of those Members who voted.  It was eventually agreed to by a vote of 366 to 34, with one Member voting “Present.”

This version of the continuing resolution is a much smaller package than the one that was defeated earlier this week.  Although there are other provisions, its main contents are:  1) an extension of government funding through March 14, 2025; 2) funding for disaster relief; 3) sections related to a set of health-care programs; and 4) one-year extensions of programs funded by the Farm Bill.

It is now up to the Senate to clear the bill and to send it to President Biden’s desk before the clock strikes midnight.

Is there a Plan C?

Posted on

A slimmed-down version of a legislative package to keep the federal lights on past midnight tonight was defeated last night on the House floor.  While this bill was much shorter than the original continuing resolution, it also contained a provision that threw a new wrinkle into the debate:  an increase in the debt ceiling through early January 2027.  Ultimately, when the legislation was brought to the floor, it was defeated 174-235, with one abstention.

The bill was brought up for a vote under “suspension of the rules,” meaning that it would have required a two-thirds of the votes to pass.  The bill was opposed by almost all Democrats and 38 Republicans bucked their leadership and the President-Elect.

While conversations are still on-going, no alternative has emerged as of this morning.  

Please keep an eye on this space for updates.