Senate Republicans have released a massive $4.2 trillion tax and spending bill just days before President Donald Trump’s July 4 deadline. The late-night move signals the party’s urgency to finalize negotiations and pass the legislation under intense political pressure.
The 940-page bill was published Friday night after weeks of internal debates and compromises. Republican leaders made significant adjustments aimed at attracting both compulsive and liberal legislators. Among the most notable changes is an increase in the cap on the deduction of State and Local Taxes by five years. The amount, which is now capped at 10,000, would increase to 40,000 – a major point by senators of high-tax states.
A further significant change moves the scheduled federal Medicaid provider tax cap to 2028. Senators such as Thom Tillis, a Republican of North Carolina, strongly opposed the previous timeline, citing that his state alone was set to lose over 30 billion dollars in funding.
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Rural Hospital Fund Emerges as Key Deal-Maker in Final Bill
The revised legislation introduces a $25 billion fund for rural hospitals to address healthcare concerns in underserved regions. Of that amount, $20 billion will be allocated during the 2028 and 2029 fiscal years. This move followed intense negotiations that narrowed a wide gap between earlier proposals ranging from $15 billion to $100 billion.
Several provisions from the original draft were dropped after consultations with the Senate parliamentarian. This led to further behind-the-scenes adjustments in order to ensure the bill could move forward procedurally.
The bill’s Initial Senate vote is scheduled for Saturday at noon. If all steps are completed on time, a final vote may occur in the early hours of Sunday.
The House of Representatives is expected to be recalled next week to vote on the legislation. As President Trump has urged, Republican leaders aim to wrap up the entire process before the July 4 holiday.
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