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7:16Now PlayingRepublican Michigan Representative Lisa McClain says she hopes senators "don't do a lot" to change the House-passed tax-cut and spending bill because vote margins are so narrow. McClain, who is also Chair of the House Republican Caucus, is optimistic the bill will ultimately pass once it is back in the House.
Significant changes are in store for President Donald Trump’s signature $3.9 trillion tax-cut bill as the Senate begins closed-door talks this week on legislation that squeaked through the House by a single vote.
Senate Republican leaders are aiming to make permanent many of the temporary tax cuts in the House bill, a move that would increase the bill’s more than $2.5 trillion deficit impact. But doing so risks alienating fiscal hawks already at war with party moderates over the bill’s safety-net cuts.
It amounts to a game of chess further complicated by the top Senate rules-keeper, who will decide whether some key provisions violate the chamber’s strict rules. Jettisoning those provisions — which include gun silencer regulations and artificial intelligence policy — could sink the bill in the House.
House Republicans’ top tax writer, Representative Jason Smith, on Friday said that senators need to leave most of the bill untouched in order to ensure it can pass the House in the end.
“I would encourage my counterparts, don’t be too drastic, be very balanced,” he said.
The wrangling imperils Republicans’ goal of sending the “Big, Beautiful Bill” to Trump’s desk by July 4. But the real deadline is sometime in August or September, when the Treasury Department estimates the US will run out of borrowing authority.
The House bill would raise the government’s legal debt ceiling by $4 trillion, which the Senate wants to increase to $5 trillion in order to push off the next fiscal cliff until after the 2026 congressional elections.
Now John Thune gets to walk the legislative tightrope.
After weeks of watching House Republicans wrangle over President Donald Trump’s all-in-one legislative package, the Senate returns today aiming to quickly advance its own version.
Senate Majority Leader Thune (R-S.D.) and Speaker Mike Johnson (R-La.) want the bill on Trump’s desk by July 4. That leaves little time to move it through the Senate and, most likely, through the House again once senators make revisions.
It’s a huge priority for Republicans, likely one of few chances to enact major legislation while they hold the White House and both chambers of Congress.
But it’s also complicated.
Thune, in his first term as Senate leader, will have to weigh competing priorities from moderates and conservatives. He also has to be careful not to topple the balance Johnson struck in the House, where the Republican majority is more precarious, and they barely approved the bill.
Thune can lose no more than three votes, and Sen. Rand Paul (R-Ky.) already sounds dead-set against the measure’s $4 trillion debt ceiling increase. Meanwhile, moderates such as Sens. Susan Collins (R-Maine) and Lisa Murkowski (R-Alaska) are pulling in the opposite direction of conservatives such as Sen. Ron Johnson (R-Wis.).
And some House provisions likely won’t fly with Senate rules for budget reconciliation, the process used to sidestep the chamber’s 60-vote requirement.
House members are digging their heels in, wary of being overruled, and everyone has to watch for Trump’s ever-unpredictable demands.
You don’t have to look far to see how it could go sideways. The first major legislative effort of Trump’s last term ran aground when Senate Republicans couldn’t agree on repealing the Affordable Care Act.
Still, odds are Republicans get something done. As the House showed, lots of lawmakers will use narrow majorities as leverage. But when it’s time to vote, few have shown any desire to get in Trump’s way.
Here are some of the challenges that await in round two of reconciliation negotiations:
Moderates and Medicaid: Republicans from the center-right have raised several objections, with some of the biggest focused on Medicaid reductions and a repeal of clean energy tax credits.
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