Key Takeaways:
- Senate Republicans aim to pass a major tax and spending bill before July 4.
- Some GOP senators worry about Medicaid cuts harming rural hospitals.
- The bill includes changes to Medicaid, a higher debt limit, and tax reforms.
- Senators are divided, with some threatening to vote no if concerns aren’t addressed.
Confidence vs. Concerns
Senate Republican leaders are optimistic about passing their wide-ranging tax and spending bill before the Fourth of July. However, they admit there’s still a lot of work to do. The bill, which includes tax cuts and changes to Medicaid, has sparked debates among GOP senators.
At a press conference, Senate Majority Leader John Thune of South Dakota highlighted the need for Medicaid reforms. “We’re trying to rebalance the program to cover the right people,” he said. But he also acknowledged that senators have concerns and are actively addressing them.
Medicaid and Rural Hospitals
One major point of contention is a proposal to lower the Medicaid provider tax rate from 6% to 3.5% by 2031. This tax allows states to pay healthcare providers who treat Medicaid patients. Some senators fear this change will hurt rural hospitals, especially in states that expanded Medicaid under the Affordable Care Act.
Missouri Sen. Josh Hawley strongly opposes the tax cut, saying it would force rural hospitals in his state to close. “We have to do something,” Hawley said. “If this passes as is, it will be a disaster for rural Missouri.” He wants the tax rate frozen at 6%.
Similarly, West Virginia Sen. Jim Justice expressed concerns about multiple parts of the bill. “I’m not going to rubber-stamp anything,” Justice said. “We need to get this right, even if it takes more time.” He warned against rushing the bill to meet the Fourth of July deadline.
Other Issues in the Bill
Alaska Sen. Lisa Murkowski said she doesn’t have concerns about the Medicaid tax rate because her state doesn’t rely on it. However, she does have issues with other Medicaid changes in the bill. “I don’t think it’ll stay in this form,” she hinted.
Wisconsin Sen. Ron Johnson was more blunt. He said he’d vote against the bill if it’s brought to the floor next week. “If we rush, it will fail,” Johnson warned. “We need time to consider these ideas carefully.”
Raising the Debt Limit
The Senate version of the bill also includes a plan to raise the national debt limit by $5 trillion. This is $1 trillion more than what House Republicans initially proposed.
A Close Vote Ahead
Some senators, like Arkansas Sen. John Boozman, believe the bill will pass if voted on the week of June 23. Otherwise, they might delay their Fourth of July break to keep debating. “The longer it hangs out, the harder it is to pass,” Boozman said.
Meanwhile, Iowa Sen. Chuck Grassley declined to comment on the Medicaid changes, saying discussions are still ongoing.
Support for Other Provisions
Not all senators are critical. Oklahoma Sen. James Lankford praised parts of the bill, such as permanent tax policies for small businesses and changes to the R&D tax credit to compete with China. He also highlighted funding for border security and air traffic control modernization.
A Tough Balancing Act
As the Senate races to meet its deadline, leaders face a tough challenge. They need to address concerns from their own party while pushing through a sweeping bill. With opposition from key senators, it’s unclear whether they’ll succeed.
But one thing is certain: this bill has the potential to impact millions of Americans, from rural hospitals to small businesses. Whether it passes by July 4—or at all—depends on how well GOP leaders can unite their party.