Overview

• Lawmakers have yet to agree on the reconciliation package’s final text, clashing over $793 billion in proposed Medicaid cuts that analysts say could shrink enrollment by more than 10 million by 2034.
• A fight over the state and local tax deduction persists after House members demanded a $40,000 cap and Senate hardliners insisted on maintaining the $10,000 limit.
• Republicans have proposed a $15 billion rural hospital stabilization fund, but several senators warn it won’t offset cuts to provider taxes that critics say risk closures.
• House Speaker Mike Johnson privately cautions that deeper Senate Medicaid cuts could cost Republicans their House majority, and Senator Ron Johnson calls the July 4 deadline a stretch.
• Senate Majority Leader John Thune remains confident of a vote by week’s end, though senators acknowledge they may need to work through the holiday weekend to finalize the bill.