Overview

• Senate Republicans released their version on June 16 featuring deeper Medicaid cuts that impose work requirements on parents of children older than 14 and cap provider taxes at 3.5% by 2031.
• The proposal retains a placeholder $10,000 cap on SALT deductions despite the House’s $40,000 deal, risking opposition from blue-state Republicans.
• Key tax provisions make the 2017 income tax cuts permanent, introduce deductions capped at $25,000 for tips and $12,500 for overtime through 2028, and expand a $6,000 senior deduction.
• The legislation phases out green energy credits—60% for projects beginning in 2026 and 20% in 2027 with no credits after 2028—raises the debt ceiling by $5 trillion, and provides $175 billion for homeland security and deportation efforts.
• Senators including Rand Paul, Josh Hawley, Susan Collins and Lisa Murkowski remain undecided, and GOP leaders must secure their support before a planned July 4 conference vote.