The Senate is back in session today, ready to tackle a massive budget plan that reflects much of President Trump’s domestic agenda. This plan, which passed the House by a narrow margin, faces skepticism from some Republicans and criticism from Democrats. It includes extended tax cuts and alterations to defense, energy, and immigration policies. While it proposes some spending cuts, it also suggests increased borrowing.
NPR’s congressional correspondent Claudia Grisales highlighted that the Senate has a different challenge than the House. With only three votes to spare, Senate Republicans must tread carefully. Some senators have already expressed concerns about parts of the bill, and the Senate’s rules could complicate the process further. They aim to finalize the bill by a July 4 deadline, partly to raise the federal debt limit and prevent a financial crisis.
The budget plan extends tax cuts for individuals and businesses that were part of Trump’s earlier policies. It also includes some of his key campaign promises, like eliminating taxes on tips and overtime pay. However, the plan comes with a hefty price tag of over $4 trillion. To offset costs, there are proposals to cut Medicaid, which could potentially leave millions without coverage. This is a major sticking point for moderate Republicans like Susan Collins and Lisa Murkowski, who are wary of deep cuts.
As the Senate considers the bill, about 60% of it is expected to remain unchanged. However, contentious issues, especially regarding Medicaid cuts, could spark significant debates among Republicans. If they attempt to soften these cuts, they risk alienating members who favor more aggressive spending reductions. Another potential flashpoint is the repeal of tax breaks for clean energy, which some Republicans are looking to revise.
To pass the bill, Republicans are utilizing a special budget rule that allows them to bypass a Democratic filibuster. However, any amendments will require approval from the House again, which could lead to more difficult negotiations and jeopardize their timeline.
Overall, the road ahead for this budget plan is fraught with challenges. The Senate must balance the demands of its members while ensuring they meet the critical deadline to avoid a financial default.