Senate Passes Donald Trump’s Megabill: Here’s What’s In And Out

Key Concepts:

• Medicaid cost sharing
• Inflation Reduction Act credits
• Rural hospital fund
• Tax bracket for high earners
• Debt ceiling

Senate Approval of President Trump's Policy Bill

On Tuesday afternoon, the Senate approved President Donald Trump's signature policy bill after a record-breaking 25 hours of negotiations. The 887-page bill underwent changes from both the House-passed version and the initial Senate draft. The Senate passed the legislation with a 51-50 vote, with Vice President JD Vance casting the tie-breaking vote.

Key Omissions and Additions

• Omission: Cuts to Medicaid Cost Sharing: An amendment proposed by Republican Senator Rick Scott of Florida, which would have blocked a significant portion of federal Medicaid funding for some states under Obamacare, was omitted from the final bill.
• Inclusion: Wind and Solar Tax Credits: The bill includes tax credits for wind and solar projects. Projects starting construction within one year of the bill's enactment will be eligible for Inflation Reduction Act credits. The bill also eases the phase-out of the tax credit, removing the original requirement for projects to be placed into service before the end of 2027 to be eligible.
• Inclusion: Rural Hospital Fund: The federal government will double its funding portion to rural hospitals to $50 billion between 2026 and 2030.
• Omission: Taxes on the Wealthy: A proposal to establish a new tax bracket for individuals earning over $25 million annually and married couples earning over $50 million was omitted.

Senate Vote and Dissension

Three Republicans voted against the bill: Senators Susan Collins of Maine, Bran Paul of Kentucky, and Tom Tillis of North Carolina, joining all 47 Democrats. Collins and Tillis opposed the bill due to the Medicaid cuts, while Paul cited concerns about the bill increasing the debt ceiling.

President Trump's Reaction and House Vote

Upon being informed of the bill's passage while visiting a migrant detention facility in Florida, President Trump responded, "Wow, music to my ears." House leadership plans to vote on the Senate version of the legislation on Wednesday, aiming to meet the July 4th deadline set by Trump for the bill to reach his desk for signing.

Synthesis/Conclusion

The Senate's approval of President Trump's policy bill involved significant negotiations, resulting in the omission of certain provisions like Medicaid cost-sharing cuts and taxes on the wealthy, while including wind and solar tax credits and increased funding for rural hospitals. The bill passed with a narrow margin, highlighting divisions within the Republican party. The House is expected to vote on the bill soon, with the goal of getting it to President Trump for his signature by July 4th.