Republican support wanes as Senate overhauls key provisions in 'big, beautiful bill'

The Senate Finance Committee put out its version of the "big, beautiful bill," and support from Republican lawmakers is already beginning to slip.

The House version of the bill narrowly passed in a 215-214 vote in May after weeks of tumultuous negotiations. The House then sent the bill over to the Senate, where the Finance Committee made key changes to several tax provisions in the bill, once again provoking various ideological factions within the GOP.

'Yeah, I will not vote for this.'

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One of the most contested changes was lowering the SALT cap from the House's $40,000 cap back down to $10,000 in the Senate. The SALT caucus vigorously negotiated for weeks on the House side and quadrupled its original cap, which leaders have said is nonnegotiable.

As expected, SALT Republicans came out strongly against the $10,000 cap put forth by the Senate, calling the bill "insulting" and "dead on arrival." The Senate claims that the lower figure is simply a placeholder to negotiate with the House, but SALT Republicans have made clear that they won't accept anything less than $40,000.

Given their narrow House majority, Republicans can afford to lose only a handful of votes to pass the bill. Without the support from the SALT caucus, the bill would not pass the House.

"I have been clear since Day one: sufficiently lifting the SALT Cap to deliver tax fairness to New Yorkers has been my top priority in Congress," Republican Rep. Mike Lawler of New York said Monday. "After engaging in good faith negotiations, we were able to increase the cap on SALT from $10,000 to $40,000. That is the deal and I will not accept a penny less. If the Senate reduces the SALT number, I will vote NO and the bill will fail in the House."

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The Senate has also taken a gentler approach to rolling back green-energy subsidies first implemented through former President Joe Biden's Inflation Reduction Act. Certain solar and wind subsidies are now going to be extended through at least 2030 and in some cases through 2040.

Fiscal hawks like Republican Rep. Chip Roy of Texas fought for more aggressive cuts in the House version of the bill. While the Senate softened up on green-energy subsidies, Roy is insisting on deeper cuts.

"Yeah, I will not vote for this," Roy said of the Senate's bill.

"The IRA subsidies need [to] end," Roy added. "Period."

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Most critics argue the Senate's bill doesn't go far enough, but with respect to Medicaid, Republican Sen. Josh Hawley of Missouri says it went too far.

The House version freezes new provider taxes, strengthens work requirements, and puts forth certain cuts to the program in order to ensure only eligible individuals are receiving Medicaid benefits. This was crucial in securing support from fiscal conservatives like Roy, who otherwise were inclined to vote against the bill in the House.

The Senate version takes these cuts one step further, capping the expansion states' charges at 3.5% by 2031. Hawley said he was "alarmed" by this provision, noting that many rural hospitals in low-income areas rely on support from the federal government.

"This is gonna defund rural hospitals effectively in order to, what, pay for solar panels in China?” Hawley said. “I’ll be really interested to see what the president thinks about this."

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