Senate Passes Sweeping Budget Bill After Intense Debate

Clear Facts

• The Senate passed a comprehensive budget bill after extensive negotiations and amendments.
• Key changes included adjustments to Medicaid provisions, clean energy tax credits, and new tax credits for nonprofit contributions.
• The bill’s original name, “One Big Beautiful Bill Act,” was removed by Democrats using special Senate budget rules.

In a significant legislative move, the Senate approved President Donald Trump’s extensive budget bill, but not without a series of negotiations that stretched into the early hours. This near-1,000 page document, described by Trump as “one big, beautiful bill,” underwent several amendments before it could secure the necessary votes.

Senators Lisa Murkowski and Susan Collins were at the forefront, advocating for changes to Medicaid and clean energy tax credits. Their efforts were pivotal in shaping the final version of the bill.

Collins, despite ultimately voting against the bill, pushed for increased funding for rural hospitals impacted by Medicaid provider tax legislation. Her initial proposal for a $100 billion fund was scaled down to $25 billion. An attempt to further increase it to $50 billion through a tax on billionaires failed, but the $25 billion fund was included without raising taxes.

Adjustments to green energy provisions were also made, removing a controversial excise tax and offering tax credits to solar and wind projects starting construction within a year. However, projects must produce electricity by the end of 2027 to qualify if they begin after summer 2026. Senators Joni Ernst, Chuck Grassley, John Curtis, and Murkowski were instrumental in these negotiations.

A new tax credit was introduced for contributions to nonprofits that provide scholarships to elementary and secondary school students. This addition aims to encourage educational support through charitable giving.

Additionally, Democratic Sen. Mark Kelly’s proposal to modify the Internal Revenue Code of 1986 was included. This measure aims to restore the Real Estate Investment Trust (REIT) subsidiary asset test, increasing the asset percentage threshold to provide more flexibility in subsidiary holdings.

The original name of the legislation, the “One Big Beautiful Bill Act,” was removed by Democrats using special Senate budget rules. This move is reminiscent of past actions, such as the revocation of the Inflation Reduction Act title in 2022.

In a nearly unanimous decision, the Senate voted to remove a ten-year ban on state and local AI regulation. Sen. Marsha Blackburn championed this amendment, citing concerns over Big Tech’s potential exploitation of vulnerable groups.

Murkowski also secured modifications to the Supplemental Nutrition Assistance Program (SNAP) specifically for Alaska, though this drew criticism from some Democratic senators who argued for similar provisions for other states.

Despite the changes, Murkowski expressed dissatisfaction with the bill, urging the House to return it to the Senate for further revisions. “Do I like this bill? No. But I tried to take care of Alaska’s interests,” she stated, emphasizing the need for ongoing adjustments.

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