The Senate is finalizing its version of the House-passed reconciliation bill, while managing competing demands, including:
- Calls for deeper spending cuts, including any additional tax cuts to be matched dollar for dollar by “real, enforceable spending reductions” from House members;
- Making permanent the House-passed temporary restoration of business tax incentives for research and development, business equipment, and debt interest;
- Limiting the “no tax on tips” and “no tax on overtime provisions” backed by President Trump;
- Addressing concerns from “Medicaid moderates,” Republican Senators opposed to the House’s proposed Medicaid cuts;
- Running the bill through the Senate’s “Byrd-Bath” to strike items without a budgetary impact, which will be removed by the Parliamentarian;
- Restoring the timelines and transferability to clean energy tax credits that were modified in the House version; and
- Navigating pushback on the SALT cap, which some Senators argue remains too high.
The Senate Banking, Housing, and Urban Affairs committee released its portion of the bill text, which includes proposals to eliminate CFPB funding and rescind any uncommitted Green and Resilient Retrofit Program (GRRP) money.
- Go deeper: Most of the $1 billion in GRRP funding is committed, with the exception of pending awards and administrative funds.
What’s Next: The Senate is weighing changes with the narrow House majority in mind—where just a few defections could sink the bill—as remaining committees prepare to release their portions in the coming days, aiming to finalize the legislation by July 4th.
