Several Senate Republicans are pushing back against their party's tax and spending package, threatening to derail the legislation despite new details unveiled by GOP leadership. The critical holdouts remain unmoved by changes to Medicaid provisions and tax policies outlined in text released Monday by the Senate Finance Committee.
According to The Hill, Senators Ron Johnson (R-Wis.) and Josh Hawley (R-Mo.) expressed clear dissatisfaction with the bill after a Senate Republican conference meeting where members were briefed on its contents. Both senators could prove crucial to the bill's passage as GOP leadership faces a tight vote count.
The updated legislation contains numerous departures from the House-passed version, including significant changes to Medicaid eligibility requirements, Child Tax Credit amounts, and the handling of green energy tax credits from President Biden's Inflation Reduction Act.
Senator Ron Johnson delivered perhaps the most pointed criticism of the bill, declaring it fundamentally inadequate to address the nation's fiscal challenges. The Wisconsin Republican has consistently demanded more substantial spending cuts, pushing for a return to pre-pandemic spending levels.
"We're not doing anything to significantly alter the course of the financial future of this country," Johnson stated after emerging from the GOP conference meeting. He indicated plans to release his own report explaining why he's "not particularly uplifting" about the nation's financial condition.
Johnson, who has been heavily lobbied by the White House due to his pivotal vote, dismissed any possibility of meeting the party's self-imposed July 4 deadline for passage. "Not by July 4th. No way," he declared, suggesting the legislation remains far from ready for consideration.
Senator Josh Hawley maintained his firm opposition to Medicaid cuts, raising specific concerns about how the bill might affect rural hospitals in his home state of Missouri. His resistance centers on the bill's approach to healthcare spending while delaying the phaseout of renewable energy subsidies.
The Senate version takes a more aggressive approach to Medicaid than the House-passed bill, proposing to tighten eligibility requirements and lower the provider tax in expansion states to 3.5 percent from the current 6 percent. These changes have alarmed moderates and representatives from states with vulnerable rural healthcare systems.
Senator Susan Collins (R-Maine), another key moderate whose vote remains uncertain, declined to comment on the updated text as she left the meeting. She has consistently expressed concerns about how Medicaid spending cuts might impact her constituents.
Senate Republican leaders face a challenging mathematical reality as they work to secure enough votes for passage. With a narrow majority, they can afford to lose no more than three votes, and Senator Rand Paul (R-Ky.) is already considered a definite "no" due to his opposition to the debt ceiling increase included in the package.
Senator Rick Scott (R-Florida) indicated he hasn't yet committed to supporting the legislation, telling reporters he's still reviewing the updated text. Like Johnson, he has advocated for more substantial spending cuts throughout the negotiation process.
Senate Finance Committee Chairman Mike Crapo (R-Idaho) presented the package during a special conference meeting Monday evening, with colleagues acknowledging ongoing disagreements. "It's just what you expect: Everybody's got an opinion, and I think it's going to be that way right up until we vote," observed Senator John Hoeven (R-N.D.).
The treatment of the State and Local Tax (SALT) deduction cap has emerged as another contentious issue threatening the bill's prospects. The Finance Committee's text maintains the cap at $10,000, significantly lower than the $40,000 level negotiated in the House version.
This difference has sparked fierce resistance from House Republicans representing high-tax states like New York, New Jersey, and California, who struck a deal with Speaker Mike Johnson (R-La.) for the higher cap. These members have warned they won't accept anything less than the agreement they already reached.
Senate Majority Leader John Thune (R-S.D.) acknowledged the disparity, calling the $10,000 figure a starting point for negotiations. "We understand that it's a negotiation," Thune said. "Obviously, there had to be some marker in the bill to start with, but we're prepared to have discussions with our colleagues here in the Senate and figure out a landing spot."
Republican leaders face increasing pressure as they work to reconcile competing demands within their caucus while maintaining their self-imposed July 4 deadline. The critical holdouts show no signs of wavering in their opposition to key provisions of the legislation.
Senator Johnson's dismissal of the July 4 timeline suggests significant work remains before a consensus can be reached. His concerns about inadequate spending cuts continue to be a major obstacle for leadership trying to advance the package.
As negotiations continue, Senator Markwayne Mullin (R-Okla.), who serves as an unofficial liaison to the House, has been working to ease tensions with House members concerned about changes to their hard-fought SALT cap agreement. "Everything is being negotiated. Everything's being talked about," he assured reporters, adding that "everybody wants their fingerprints on it and make the bill better."
