A number of Senate Republicans have expressed hesitance to back the party’s extensive tax and spending proposal, indicating that the content shared by GOP leaders on Monday did not sway their opinions.
The text unveiled on Monday by the Senate Treasury Committee highlighted several of the more contentious matters Republicans are currently addressing, including Medicaid, taxation, and Green Energy Tax Credits, featuring significant departures from the version initially approved by the House.
Senators Ron Johnson (R-Wis.) and Josh Hawley (R-Mo.) stand out as notable critics of the bill, making their dissatisfaction with the proposed changes clear.
Johnson, perhaps the most outspoken opponent of the emerging package, did not hold back his feelings after a Senate GOP meeting meant to inform members about the bill.
“We have not significantly altered our country’s financial trajectory,” Johnson stated, indicating his intention to release a report soon to explain “why I am not particularly optimistic” regarding the nation’s economic outlook.
“At this moment, I just don’t see it. It’s simply insufficient,” he elaborated.
Johnson has persistently criticized the legislation for not enacting sufficient spending cuts and is advocating for a return to previous funding levels.
While he holds considerable influence regarding the potential passage of the bill, he pointed out that the legislation is not yet fit for approval and has tentatively suggested a July 4 deadline.
“It won’t happen by July 4th. No way,” he remarked.
Meanwhile, Hawley continues to emphasize a hard stance against Medicaid cuts, opposing any legislation that would reduce benefits.
On Monday, he raised concerns that the bill includes delays in phased renewable energy subsidies and proposed Medicaid cuts affecting rural hospitals.
The Senate’s proposed bill adopts a more adaptable strategy for phasing out tax credits from President Biden’s Inflation Reduction Act compared to the House version, while escalating the Medicaid modifications.
“This would be a tough sell in Missouri,” Hawley noted.
He added that due to the extensive nature of the text, “I believe this requires additional work.”
GOP leaders view winning over Johnson and Hawley as crucial for passing the bill, especially if they aim to present a finalized version to President Trump by the nation’s birthday.
Additionally, there has been no indication from moderate Senator Susan Collins (R-Maine) regarding her position on the bill. Upon exiting the meeting, she declined to comment on the revised text.
Collins has consistently expressed concerns about the repercussions of Medicaid spending cuts included in the House bill.
Another skeptic, Senator Rick Scott (R-Fla.), made it clear he is not yet in favor and told reporters he is still reviewing the updates. He has been one of those pushing for deeper spending cuts, but his vote is perceived as potentially more challenging to secure than Johnson’s.
The Senate GOP can afford to lose up to three votes, with Senator Rand Paul (R-Ky.) widely viewed as a definite “no” vote opposed to the proposed increase in the debt ceiling. This indicates that further votes may need to be secured.
Senate Finance Committee Chairman Mike Crapo (R-Idaho) introduced the package during a special conference meeting on Monday evening, with committee members acknowledging that the process is ongoing.
“That’s what you hope for. Everyone has a perspective, and I anticipate it will remain that way until the vote,” said Senator John Thune (R-S.D.). “It’s still evolving.”
The financial language includes numerous alterations from the House package that Senate Republicans have been pursuing.
These revisions propose stricter Medicaid eligibility standards and suggest reducing the expanded provider tax from 6% to 3.5%.
The child tax credit is being raised to $2,200 in the Senate compared to the House’s $2,500 level.
One contentious topic remaining unresolved is the fate of the state and local tax (SALT) deduction caps.
The Finance Panel’s text stabilizes the $10,000 cap, which has drawn criticism from members representing high-tax states like New York, New Jersey, and California, with Speaker Mike Johnson (R-La.) addressing these concerns.
While Senate Republicans show limited enthusiasm for adhering to transactions that don’t favor representatives from high-tax blue states, they acknowledge that the $10,000 price tag is merely a starting point.
“We recognize that this is a negotiation,” said Senate Majority Leader John Thune. “Clearly, the bill required an initial marker, but we’re ready to engage with our colleagues here in the Senate to find common ground.”
Many House GOP members from these states are advocating for significant changes to the House agreement, asserting they won’t accept anything less than what has already been agreed upon with Johnson.
Senator Markwayne Mullin (R-Okla.), acting as an informal liaison to the House, mentioned he has been in discussions with Representative Mike Lawler (R-N.Y.) and others to smooth out the differences.
“Everything is under negotiation. All points are being discussed,” he stated. “Everyone has a stake in it, and they want to leave their imprint on the bill and make improvements.”
Alexander Bolton contributed.
Source: thehill.com