WASHINGTON (AP) – House Republicans celebrated the dynamic President Donald Trump’s “Grand Tax and Immigration Reform” with a single vote. However, senators across the Capitol remained more reserved.
Senate Majority Leader John Thune has lost three Republican senators but still aims to pass the bill, facing more challenges ahead. Like at home, he must navigate the concerns of both moderate and conservative members of his caucus.
The ambitious deadline for Republicans is July 4th, especially with the looming potential for default. Thune mentioned that a group of senators has convened to discuss the legislation and hopes to review it promptly. “Then we’ll stamp it,” he added.
“We’ll see what happens,” Thune stated. “What do we need to secure 51 votes?”
Here are some potential areas of concern in the Senate:
Spending
Multiple Republican senators expressed that the House’s trillion-dollar tax proposal lacks sufficient savings. Thune remarked that while many in the GOP support tax reductions in the bill, “This is a unique moment in our history when we control the House, Senate, and White House; we have an opportunity to make significant changes in how we manage government spending.”
Sen. Ron Johnson (R-Wis) is a staunch critic of the House bill, advocating for a return to previous spending levels. He has vocalized his opposition and mentioned that he is joined by at least three other senators.
Medicaid and Food Stamp Cuts
Senate Republicans generally favor stricter work requirements for older Medicaid recipients, who account for much of the $700 billion savings from the program. However, Senators Jerry Moran (R-MO), Susan Collins (R-ME), and others have raised concerns over modifications that could cut funding for rural hospitals and increase healthcare costs for beneficiaries.
Senators have a reliable ally in Trump, who frequently states that he wants to protect Medicaid despite supporting the House bill. He reportedly told Senator Josh Hawley this week, “His exact words were, ‘Don’t touch them, Josh.’
Concerns also linger regarding the House bill’s proposal to shift the financial burden of food stamp programs to states, which poses a significant issue for some Republican states with a high number of food aid recipients. The House bill aims to save $290 billion from food assistance, but Senate Agriculture Committee Chairman John Boozman indicated that Senate savings would “likely be lower.”
Permanency of Tax Cuts
This week, Thune noted that “a key difference” between the House and Senate positions is that Senate Republicans prefer many tax cuts to be made permanent. Elimination of taxes related to overtime hours, car loan interest, and other areas is on the table.
Senate Finance Committee Chairman Mike Crapo stated that making some of the cuts permanent is currently the “primary goal.”
Funding the Legislation
One of the primary questions in the Senate is whether the tax credits should be offset by spending cuts elsewhere.
To counterbalance potential tax losses, House Republicans propose over $1 trillion in spending reductions across Medicaid, food assistance, and cuts to Green Energy Programs. However, Senate Republicans are skeptical about whether permanent tax extensions carry associated costs and are wary of the political and procedural conflicts that could ensue.
Debt Limit Increases
The House bill proposes a $4 trillion boost in debt limits. Treasury Secretary Scott Bescent has warned that the U.S. might run out of funds to meet its obligations as soon as August without Congressional intervention.
Senator Rand Paul has stated he will not support any bill that increases the debt ceiling but is open to consideration if that provision is removed.
Most Republican senators aim to avoid another contentious Senate battle requiring 60 votes. Texas Senator John Cornyn voiced that negotiating non-legal debt limits would necessitate “paying a king’s ransom” to gather enough support.
Energy Tax Credits
Several Republican senators have expressed concerns about the House’s proposed regulations to eliminate clean energy tax credits established in 2022, which spurred investment across many states.
Senators Lisa Murkowski (R-AK), Tom Tillis (R-NC), John Curtis (R-UT), and Moran recently penned a letter arguing that removing credits could “lead to uncertainty in capital allocation, long-term project planning, and impacts on both the energy sector and the broader economy.”
Artificial Intelligence Regulations
The House bill seeks to regulate artificial intelligence in a way that restricts states and regions for ten years, giving the federal government substantial control over policies. This approach is popular among those in the AI industry but raises concerns from members across the political spectrum.
Even with ample support, this provision may struggle to pass in the Senate due to its limited impact on the federal budget.
Other Concerns
With only 53 Republicans in the Senate, the priorities of individual senators bear significant weight. South Dakota Senator John Thune supports the House bill; however, he indicated that the treatment of spectrum auctions and the sale of communication signal rights could be a “deal breaker.” He is currently discussing the matter with other senators.
Senator John Hoeven (R-ND) has emphasized that one of his primary objectives is to ensure the passage of various farm bills later this year, including funding for essential farm safety net programs.
“Ultimately, we need the support of 50+1 votes,” Hoeven remarked. “So, we have some work to do.”
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Associated Press writer Lisa Mascaro contributed to this story.
Source: apnews.com