The Senate Finance Committee has unveiled its portion of the “big, beautiful bill,” a cornerstone of President Trump’s second-term agenda. Senate Republicans are proposing adjustments that could lead to clashes with the House, including provisions on Medicaid and clean energy tax credits. The bill aims to prevent a significant tax hike and make the 2017 Trump tax cuts permanent. Despite criticism from Senate Democrats, Republicans plan to use reconciliation to pass the bill without bipartisan support.

One major point of contention is the state and local tax deductions (SALT), with the Senate maintaining the $10,000 cap but open to negotiation. The bill also addresses the debt limit, taxes, and various business tax breaks. Differences between the House and Senate versions, such as SALT deductions, debt limit increase, and tax credit amounts, could complicate the bill’s passage.

Additionally, the Senate proposal includes provisions on Medicaid that are raising concerns, including work requirements and reductions in provider taxes. These changes have sparked debates among lawmakers, with some expressing optimism for a bipartisan agreement and others voicing skepticism. The delicate balance between the House and Senate versions, along with the narrow majorities in both chambers, add complexity to the bill’s journey towards passage.