House Passes Trump Tax Cut Bill Amid Senate Uncertainty

‌ ​ ​ Updated May 27, 2025

the House of Representatives passed landmark⁤ legislation‌ early Thursday that overhauls the‌ tax code ⁣while significantly
​ reducing funding for healthcare and food assistance programs. The “One Big Beautiful ​Bill Act,” celebrated by
⁢⁣ President Trump, faces an uncertain path in the Senate.

The bill aims to boost border⁤ security and defense spending,⁣ eliminate taxes on tips and overtime, provide tax
‍ deductions for seniors, and renew the ‌2017 tax cuts. These measures would be funded by eliminating green energy
tax benefits and cutting an estimated $1 trillion from medicaid and the Supplemental Nutrition assistance​ Program
​ ⁢(SNAP).

The Congressional Budget Office (CBO) projects the bill would substantially increase the national ‌debt, possibly
triggering across-the-board spending⁣ cuts, including ⁤meaningful reductions to Medicare.

Democrats​ argue the bill‌ would create barriers to ⁤Medicaid coverage⁢ and increase Affordable​ Care Act​ premiums,
‌ ‌ potentially causing millions of Americans to lose health insurance. several Republican senators have voiced
reservations about⁢ the proposed Medicaid cuts.

Sen. susan Collins,R-Maine,expressed wariness about cutting Medicaid. Sen. ‌Josh Hawley, R-Mo., stated he could
‍ not ​support significant cuts to Medicaid benefits. Sen. Roger marshall, R-Kansas, indicated that ‍the Senate ⁢would
likely make material changes to‌ the House bill.

“We need ​to go back through that ⁣bill with a fine-tooth comb and​ make it better,” Marshall said, ​suggesting
⁢ ⁤ opportunities to strengthen and preserve Medicaid for those most in need.

Any Senate efforts to restore Medicaid funding could face opposition from‌ the House ‌Freedom Caucus,⁢ which advocates
⁢for ⁢even deeper cuts ⁣to the program. Rep. Andy Harris,R-Md., chairman of the⁢ House Freedom Caucus, voted
“present,” maintaining negotiating leverage as the bill ‍moves forward.

“I voted to move the bill along in the process for the president,” ‍Harris wrote, emphasizing the need for
​ ​ deficit reduction and addressing waste, fraud, and abuse in Medicaid.

Sen. Lindsey Graham, R-S.C., dismissed the Freedom Caucus’s proposed cuts as insufficient to significantly reduce
⁤ the national debt. sen. Kevin Cramer, R-N.D., criticized the ​caucus for advocating fiscal conservatism while
​ supporting a ⁣bill that ⁣the CBO‌ estimates‌ would increase the deficit by $3.8 trillion. This tax cut bill is a
‍ major piece of legislation‍ that could impact tax planning and financial security for many
Americans, especially concerning healthcare access.

what’s next

If enacted, the Medicaid work requirements would begin at⁤ the end of 2026. Green energy tax credits would be phased
out for ‌projects not already under⁣ construction shortly after the⁤ law takes effect. The ​state and local tax
‍ deduction (SALT) cap would increase to $40,000, ⁣phasing out for higher-income individuals and households.
⁣ Speaker Johnson⁤ aims to send‍ the bill​ to the president by Independence Day, while the White House prepares for
‌Senate negotiations.