Senate Republicans prepare to enhance tax cuts in Trump’s ‘Big Beautiful Bill’ while navigating Medicaid concerns that could derail the landmark legislation.
Key Takeaways
- Senate Majority Leader John Thune plans to modify the House-passed bill to include more permanent business tax cuts while finding additional savings.
- The Senate’s narrow 53-47 Republican majority means only three GOP senators can oppose the bill, with Paul, Johnson, and Scott pushing for deeper spending cuts.
- Concerns over Medicaid reforms are causing hesitation among some Republican senators, despite President Trump’s assurance of no benefit cuts.
- The bill aims to balance the budget with $1.6 trillion in savings while eliminating taxes on tips, overtime, and Social Security for seniors.
- Senate Democrats have pledged unanimous opposition, making Republican unity essential for the bill’s passage before the July 4 deadline.
Senate GOP Leaders Push for Enhanced Tax Cuts
Senate Majority Leader John Thune revealed plans Monday to strengthen the tax cut provisions in President Trump’s landmark legislation that narrowly passed the House. Republican leadership is particularly focused on making permanent certain business tax provisions that the House version limited to five-year windows. “A lot of our members are interested in permanence in some of the areas that the House made five-year windows,” said John Thune, Senate Majority Leader.
The Senate’s modifications aim to balance fiscal responsibility with the President’s ambitious agenda of tax cuts while meeting the July 4 deadline set by Trump. With a 53-47 Republican majority in the Senate, Thune can only afford to lose three GOP votes, making the balancing act particularly delicate. The challenge intensifies as fiscal hawks like Senators Rand Paul, Ron Johnson, and Rick Scott demand more substantial spending reductions beyond the $1.6 trillion in savings already included in the bill.
Medicaid Reforms Spark Internal Debate
The House version’s Medicaid reforms have become a flashpoint within the Republican caucus. While the bill includes work requirements for able-bodied Medicaid recipients and removes illegal immigrants from the program, some GOP senators worry about potential impacts on their constituents. Senator Josh Hawley publicly sought and received reassurance from President Trump on this contentious issue. “Just had a great talk with President Trump about the Big, Beautiful Bill. He said again, NO MEDICAID BENEFIT CUTS,” shared Josh Hawley, Senator from Missouri.
Alaska’s Senator Lisa Murkowski has also expressed reservations about the Medicaid provisions, highlighting the challenge of maintaining support in states heavily dependent on the program. Speaker Mike Johnson has warned that excessive Senate modifications could jeopardize the fragile coalition that enabled the bill’s passage in the House by a mere two votes. The proposed reforms would redirect Medicaid funding toward American citizens while implementing accountability measures for recipients.
Murkowski on blowing bill up: “I don’t know about blowing things up"
“You can kind of see the writing on the wall here. You’ve got Republicans in the House that have been able to move something … a Republican majority here, and you have a president who very clearly wants this" https://t.co/iljZMR77Oc
— Burgess Everett (@burgessev) May 22, 2025
Fiscal Impact Debate Intensifies
The bill’s fiscal impact has become a central point of contention, with conflicting assessments from various stakeholders. While the White House and Republican leadership tout the $1.6 trillion in savings, the Committee for Responsible Federal Budget projects the bill could add approximately $3 trillion to the national debt when accounting for interest. Some critics suggest the long-term impact could be significantly higher, with estimates reaching $20 trillion over a decade.
“It’s not going to add to the debt,” insisted Speaker Mike Johnson.
This assertion has been met with skepticism from budget hawks who point to the current national debt of nearly $37 trillion. Senator Rand Paul’s opposition has drawn direct criticism from President Trump, who warned of political consequences. “Rand will be playing right into the hands of the Democrats, and the GREAT people of Kentucky will never forgive him!” stated President Trump. The bill includes a $4 trillion increase in the federal debt limit, a provision that further complicates efforts to win over fiscal conservatives.
Trump’s Vision for Economic Revival
President Trump has framed the One Big Beautiful Bill as a comprehensive solution to reverse what he describes as “four disastrous years” under the previous administration. The legislation encompasses far more than tax cuts, including expedited energy permitting, refilling the Strategic Petroleum Reserve, updating the Air Traffic Control System, and enhancing border security. “We will take a massive step to balancing our Budget by enacting the largest mandatory Spending Cut, EVER, and Americans will get to keep more of their money with the largest Tax Cut, EVER, and no longer taxing Tips, Overtime, or Social Security for Seniors — Something 80 Million Voters supported in November,” declared President Trump.
“It will kick millions of Illegals off Medicaid, and make sure SNAP is focused on Americans ONLY! It will also restore Choice and Affordability for Car purchases by REPEALING Biden’s EV Mandate, and all of the GREEN NEW SCAM Tax Credits and Spending,” explained President Trump.
The bill would eliminate taxes on tips for service workers, overtime pay, and Social Security benefits for seniors—popular provisions that Republicans believe have broad public support. It also includes funding for “The Gold Dome,” a new air security system, and additional construction of the border wall. Democrats, led by Senate Minority Leader Chuck Schumer, have pledged unanimous opposition through procedural tactics and public messaging campaigns.
