House, Senate set for clash over Trump bill
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The latest in politics and policy. Direct to your inbox. Sign up for the Morning Report newsletter SubscribePresident Trump’s second-term legislative agenda is experiencing a Senate GOP makeover that puts Republicans on a collision course with their House colleagues.
The approach drafted by Republican members of the powerful Senate Finance Committee and introduced to colleagues during a private briefing Monday evening would raise the nation’s borrowing authority to $5 trillion, higher than a House-proposed $4 trillion proposal, which deficit hawks in Congress have said could cost the narrow majority critical votes.
The Senate text would also include key changes for Medicaid and green energy tax credits, and keep the cap on state and local tax (SALT) deductions at $10,000 a year — provisions that risk upsetting various Republicans in both chambers.
The legislation would lower to 3.5 percent, down from the current 6 percent, by 2031 the health care provider taxes in states that expanded Medicaid, an explosive change expected to spark pushback in red states.
The existing tax adjustment, used in every state but Alaska, has allowed states to increase federal funding for their programs. Critics complain it’s a form of “money laundering,” but the reduction would mean significant holes in state Medicaid budgets, and could result in lower payments to hospitals or other cuts to state budgets.
And the committee’s proposal would block states that previously did not expand Medicaid under the Affordable Care Act from increasing the rate of health care provider taxes as a way to hike their federal funding, The Hill’s Alexander Bolton reports. Draft Senate language goes beyond House-passed language to tighten Medicaid eligibility requirements, two Republican aides said. The White House previously suggested this change could curb program “abuse,” but would not conflict with Trump’s pledge to protect federal health benefits.
The Senate’s approach would make permanent the 2017 corporate tax cuts Republicans enacted during Trump’s first term and phase out renewable-energy tax cuts enacted under former President Biden. It also includes Trump’s campaign vow to shield certain workers’ tips from federal taxes.
A group of moderate House Republicans from high-tax states who had secured a deal with House GOP leadership to raise the SALT deduction cap to $40,000 are seething over the Senate's proposal, The Hill's Mychael Schnell reports. (Read the Finance Committee text here).
LAWMAKER SECURITY ALARM: Separately, bipartisan lawmakers want input from House and Senate leaders, the U.S. Capitol Police and the Senate sergeant-at-arms about enhanced protection for members of Congress and relatives in the aftermath of the shootings of two Minnesota state lawmakers and their spouses, which resulted in two fatalities on Saturday and shocked elected officials and the public nationwide.
Senators will receive a security briefing today in the Capitol, along with a discussion about resources that would be required to protect rank-and-file lawmakers who do not currently receive around-the-clock protection.
Axios: Members of Congress fear any one of them could be the target of an unanticipated attack, particularly at home in their districts and while in transit.
The suspect in the Minnesota shootings, Vance Boelter, has been hit with with federal and state charges, including two counts of murder and two counts of attempted murder. Boelter allegedly researched and planned his attacks and posed as a police officer. A list of about 70 names was found in writings recovered from the suspect’s vehicle, including names of elected officials. Authorities have not publicly identified a motive for the shootings.
Michigan Democratic Rep. Hillary Scholten on Monday postponed a town hall event after learning her name was listed. "Out of an abundance of caution and to not divert additional law enforcement resources away from protecting the broader public at this time, this is the responsible choice,” Scholten said in a statement.
Some of Wisconsin's top Democrats were also among the politicians listed in documents recovered by authorities in Minnesota, including Sen. Tammy Baldwin and Reps. Mark Pocan and Gwen Moore, Milwaukee Journal Sentinel reported. The newspaper previously reported that © The Hill
