The Senate GOP’s latest bill is hitting significant roadblocks in the House as various lawmakers express concerns about the legislation.
On Monday, the Senate Finance Committee unveiled the final wording of the proposed law. Key changes have been made to the original framework, such as tightening Medicaid cuts, easing regulations on green energy taxes, and revising the state and local tax (SALT) deduction caps.
“If this bill reached the House in its current form, it would likely be dead on arrival,” said Senator Chip Roy (R-Texas), a member of the Freedom Caucus, during a press conference.
He emphasized the GOP leadership’s self-imposed deadline around Independence Day is “a serious concern right now.”
“This bill, as it stands, won’t pass the House,” added Roy. “There are major concerns about inflation and the deficit. While Medicaid reforms have improved slightly, there are numerous other issues to address.”
Jeff Van Drew (R-N.J.), who switched from Democrat to Republican in 2020, also criticized the Senate bill, particularly its provisions that would cut state Medicaid funding.
“This is just political foolishness. It’s like political suicide. Why would you harm these people?” Van Drew remarked. “There are many low-income individuals who are part of this new Republican party, and ensuring their safety is critical—not just politically, but for moral reasons.”
“I can’t support it unless there are major revisions,” he said firmly. “I’m definitely not voting for it.”
The early resistance presents a challenge for Speaker Mike Johnson (R-La.), who can only afford to lose a few votes in order to pass the law with a slim majority. The Speaker did not address the Senate’s bill on Tuesday evening.
While there could be adjustments to garner support in the Senate, such changes would necessitate a substantial shift, as many leaders have indicated a lack of interest in major revisions.
For instance, some centrist House Republicans are aware of a proposal to reduce provider taxes to 3.5% from the current 6% for states that have expanded Medicaid under the Affordable Care Act. This reduction is set to roll out in stages starting in 2027.
Van Drew expressed a desire to keep the provider tax rate at 6%. He highlighted that the House bill has frozen provider taxes while also implementing work requirements for individuals without disabilities.
“This move will harm many people,” Van Drew noted about the Senate’s proposal. “You don’t want to negatively affect those who shouldn’t be harmed, but these cuts will impact those who are already vulnerable.”
Senate Majority Leader John Thune (R-S.D.) defended the provisions despite concerns raised by moderates in his party, describing the reform as a way to better align Medicaid with its intended beneficiaries.
“We’ve been hearing concerns about various parts of the bill. Our main goal is to get the necessary votes in the Senate and the House,” he stated.
Meanwhile, the rollback of the Senate bill’s Green Energy Tax Credit has also created tensions among the more conservative members. While the measure retains some elements from the Democratic Inflation Reduction Act, it seems to offer fewer restrictions.
For example, the legislation appears to remove requirements for environmentally friendly projects to begin construction within 60 days of the bill’s passage and lessens one of its strictest energy conditions. It now requires construction to start by the end of the year for full credit on solar and wind projects.
Roy had indicated for weeks that he wouldn’t support the law if the green energy tax credits from 2022 were weakened, and now he’s voicing his disappointment.
“This is a significant rollback of the Inflation Reduction Act’s so-called green subsidies,” he told reporters. “We’re moving backward, which is a real concern.”
Members of the Freedom Caucus recently indicated they would not accept any attempts to dilute spending cuts or reverse the measures established by the IRA.
Another key issue is the Senate’s proposed $10,000 cap on the SALT deduction, which has caused disruption among moderate House Republicans from high-tax states.
These lawmakers, particularly from New York, New Jersey, and California, have been negotiating with Johnson to secure a $40,000 deduction limit for individuals earning under $500,000.
Thune mentioned that the $10,000 cap serves as a “marker” for discussions with House Republicans, adding that the two sides would eventually find common ground.
However, House Republicans in the Salt Caucus have warned against accepting any limit below $40,000 and are prepared to oppose the entire proposal.
They have highlighted that if the SALT issue isn’t resolved by year’s end, the deduction cap could revert to unlimited—just as it was before the Trump’s 2017 tax reform established the current $10,000 limit.
“The $10,000 cap in the Senate bill will not survive in the House,” Rep. Nick LaLota (R-N.Y.) stated. “There’s no acknowledgment of the hard work we’ve put in to achieve $40,000 over the past four months, and the Senate now has two options: stick to $40,000 or go unlimited. Anything below $40,000 will sink the bill, and we’ll revert to unlimited next year.”
He concluded with a clear message to his Senate colleagues: “The ball is now in their court, and the time for negotiating on SALT is running out.”
