Senate Bill Tightens Medicaid, Keeps SALT Cap

The Senate Finance Committee has released its revised version of President Trump’s central tax and budget bill, making the 2017 tax cuts permanent and introducing steeper Medicaid cuts and stricter work requirements compared to the House version. The Senate draft maintains the state and local tax (SALT) deduction cap at $10,000, reversing the House's proposed increase, and slightly lowers the Child Tax Credit increase. Limited new deductions are included for tips, overtime, and auto loan interest, while several business tax breaks are extended. The Senate bill also gradually phases out certain clean-energy tax credits and raises the federal debt ceiling by $5 trillion. These provisions have drawn criticism from Democrats, who warn of potential health coverage losses and rural hospital closures, as well as from fiscal conservatives concerned about the rising deficit. Narrow majorities and intraparty disagreements present significant challenges to the bill’s passage.