Overview

• The Senate Finance Committee version reverts the SALT deduction cap to $10,000 as a placeholder well below the $40,000 agreed by House negotiators.
• The draft imposes deeper Medicaid savings by tightening eligibility requirements and limiting provider taxes to reduce federal matching funds.
• Senators make the 2017 Tax Cuts and Jobs Act permanent and scale back the Child Tax Credit increase to $2,200 versus the House’s $2,500 proposal.
• Blue-state members of the House’s SALT caucus warn they will withhold votes if the cap remains below their negotiated level.
• Lawmakers now face a ticking clock to reconcile stark differences before their self-imposed July 4 deadline or risk collapsing the entire package.