Senate Passes Trump’s Budget Bill After Lengthy Negotiations
The Senate approved President Donald Trump’s extensive budget law, dubbed “One Big, Beautiful Bill,” early Tuesday morning, after hours of negotiations over the nearly 1,000-page document.
Some Republican senators, including Lisa Markowski from Alaska and Susan Collins from Maine, pushed for amendments related to Medicaid regulations and clean energy tax credits. They leveraged their positions to negotiate with Senate Majority Leader Thune throughout the night. This resulted in a final change to the budget adjustment package.
Collins was among three Republican senators who ultimately opposed the legislation. She advocated for additional funding for rural hospitals through a proposed $100 billion Rural Hospital Fund, which would be affected by the Medicaid Provider Tax Act. Instead, Senate Republicans inserted a $25 billion protection fund into the bill. Collins even tried to raise that amount to $50 billion by introducing a tax on billionaires, but that amendment failed with a vote of 22-78, garnering support from 18 Republicans and four Senate Democrats. Despite this setback, an increase for rural hospitals was included in the final bill without any tax hikes.
Changes to Green Energy Tax Credits
In a surprising twist, Republican senators made last-minute modifications to green energy regulations, causing some controversy. The bill now offers tax credits for solar and wind projects, provided they begin construction within a year of the bill’s passage. However, projects starting after the summer of 2026 must qualify for credits by the end of 2027.
Key negotiators on these energy-related amendments included Republican Senators Chuck Grassley of Iowa, John Curtis of Utah, and Markowski.
New Tax Credits for Nonprofits
A new tax credit was also introduced for donations to nonprofits providing scholarships for primary and secondary schools. The taxable contributions come from scholarship organizations that support eligible students within their respective states.
Additionally, a measure spearheaded by Arizona Senator Mark Kelly aimed to amend the 1986 Internal Revenue Act by adjusting asset tests for real estate investment trusts (REITs), raising the asset percentage threshold from 20% to 25% to give REITs more flexibility. This new provision is set to take effect on December 31, 2025.
Changes to Bill Title
The original title, “One Big Beautiful Bill Act,” has been officially removed. Democrats utilized Special Senate Budget Rules to revoke the title given by Trump, reminiscent of when Republicans stripped the Inflation Reduction Act of its original name in 2022. A similar tactic was used by Democrats in 2017 when they removed the name of the Republican Tax Cuts and Jobs Act.
Artificial Intelligence Regulations
In a separate move, the Senate voted 99-1 to impose a 10-year moratorium on state and local regulations regarding artificial intelligence. Republican Senator Marsha Blackburn from Tennessee introduced amendments to lessen the restriction, aiming to shorten the moratorium to five years after breaking ties with Senator Ted Cruz over a different topic. Blackburn’s change came about due to concerns that the current compromise might not adequately protect children and conservative creators from exploitation.
SNAP Programming Changes
During the negotiations, Markowski also succeeded in making adjustments to Alaska’s Supplementary Nutrition Assistance Program (SNAP), advocating for “more flexibility” in its components. This was supported by Democratic senators such as Amy Klobuchar of Minnesota. Despite the modifications, Markowski is pushing for further changes in the House, insisting that the bill needs more work.
She expressed her mixed feelings about the legislation, saying, “Do I like this bill? No. But I tried to take care of Alaska’s interests,” to NBC News after the final vote. “My hope is for the House to see this and realize that we are not there yet.”
