Senate Advances Trump’s Big Beautiful Bill: GOP Tax Plan, Hospital Tax, and Key Provisions in Latest Version of HR 1

Key Points

  • Research suggests the GOP is divided over Trump’s tax bill in the Senate, with competing demands on spending cuts and social programs.
  • It seems likely that conservatives push for deeper Medicaid cuts, while moderates seek to protect rural hospitals and face election pressures.
  • The evidence leans toward internal conflict, with some senators opposing the bill due to fiscal and political concerns, amid Trump’s push for passage.

Background

The Trump tax bill, dubbed the “big, beautiful bill,” is currently under debate in the Senate as of June 30, 2025. This legislation aims to extend the 2017 Tax Cuts and Jobs Act, eliminate taxes on tipped and overtime income, and lift the state and local tax (SALT) deduction cap from $10,000 to $40,000 for five years. However, it also proposes significant cuts to social programs like Medicaid, leading to division within the Republican Party (GOP). With a narrow 53-47 majority, GOP leaders can afford only three defections, making internal unity crucial.


GOP Internal Divisions

The GOP is torn by competing demands, reflecting ideological and political tensions:

  • Conservative Push for Deeper Cuts: Senators like Rick Scott (FL), Ron Johnson (WI), Mike Lee (UT), and Cynthia Lummis (WY) advocate for amendments to restrict Medicaid expansion further, aiming to reduce spending by $300 billion. They are concerned about the $5 trillion debt ceiling increase, viewing it as fiscally irresponsible.
  • Moderate Concerns and Electoral Pressures: Senators such as Susan Collins (ME) and Lisa Murkowski (AK) are more cautious. Collins, facing reelection in a Democratic-leaning state, pushes for doubling the rural hospital fund from $25 billion to $50 billion. Murkowski is more likely to support the bill after concessions like SNAP work requirement waivers.
  • Individual Opposition: Sens. Thom Tillis (NC) and Rand Paul (KY) have voted against the bill, with Tillis citing Medicaid cuts and not seeking reelection in 2026, and Paul opposing the debt ceiling hike.
  • Trump’s Influence: Trump is pressuring senators to meet his July 4 deadline, calling them directly and criticizing dissenters like Tillis on Truth Social . This has added tension, with some senators resisting his tactics.


Comprehensive Analysis of Trump Tax Bill and GOP Internal Dynamics

This note provides a detailed examination of the Trump tax bill, currently under Senate debate as of June 30, 2025, and the internal conflicts within the Republican Party (GOP) over competing demands. The analysis is grounded in recent news reports, legislative documents, and political analyses, offering a holistic view of the bill’s content, fiscal impact, and the political pressures shaping its passage.

Bill Overview and Key Provisions

The Trump tax bill, often referred to as the “big, beautiful bill,” is a 940-page legislative package that includes significant tax and spending measures . Key provisions include:

  • Tax Cuts: The bill aims to make permanent the tax rates and brackets from the 2017 Tax Cuts and Jobs Act, estimated at $3.8 trillion in cuts over a decade .
  • Spending Cuts and Social Programs: The bill proposes $1.2 trillion in cuts, primarily targeting Medicaid, with work requirements and prohibitions on funding for abortion providers like Planned Parenthood .
  • Other Measures: The bill boosts military spending by $150 billion this year and allocates $350 billion for border and national security, including funds for Trump’s mass deportations, financed by immigrant fees . It also includes a $5 trillion increase to the debt ceiling ahead of the August deadline to avert default.

Fiscal Impact and CBO Analysis

The Congressional Budget Office (CBO) has analyzed the bill’s fiscal impact, highlighting significant concerns :

  • The bill is projected to increase the national debt by $3.3 trillion over 10 years, with revenues falling by $4.5 trillion and spending cut by $1.2 trillion.
  • It is estimated that 11.8 million people will lose health insurance by 2034 due to Medicaid cuts, exacerbating concerns about the safety net .

The Tax Foundation has also analyzed the bill, estimating a $4.7 trillion reduction in federal tax revenue between 2025 and 2034 on a conventional basis, with dynamic scoring showing slightly less impact .

GOP Internal Conflicts and Competing Demands

The GOP is deeply divided over the bill, with competing demands reflecting ideological and political tensions. The following table summarizes key aspects of these conflicts:

AspectDetails
Conservative DemandsSenators like Rick Scott (FL), Ron Johnson (WI), Mike Lee (UT), Cynthia Lummis (WY) push for amendments to prevent new Medicaid expansion enrollees (able-bodied, no dependent children) from 9-to-1 FMAP, reducing spending by $300 billion. Supported by Sen. John Thune (SD) as part of deal . Concerned about $5 trillion debt ceiling hike.
Moderate ConcernsSens. Susan Collins (ME), Lisa Murkowski (AK) seek concessions like doubling rural hospital fund from $25 billion to $50 billion (Collins previously suggested $100 billion). Murkowski more likely to support after SNAP work requirement waivers, $25 billion rural hospital fund . Facing reelection pressures in Democratic-leaning states.
Individual OppositionSens. Thom Tillis (NC), Rand Paul (KY) voted “no” due to Medicaid cuts and debt ceiling hike. Tillis not seeking reelection in 2026 .
Trump’s PressureTrump called senators, golfed with Paul, Lindsey Graham (SC), Eric Schmitt (MO), attacked Tillis on Truth Social for vote . Pushed for July 4 deadline, badgered Tillis, threatened primary challenge.
House ConcernsReps. Nick LaLota (NY), David Valadao (CA) oppose SALT cap at $10,000, Medicaid language, threatening House passage .

The vote on the bill was 51-49, with Paul and Tillis joining Democrats in opposition, initially opposed by Murkowski, Scott, Lee, Lummis, and Johnson, but Johnson switched his vote after securing an amendment on Medicaid restrictions for single, childless able-bodied people . Senate Majority Leader John Thune (SD) has been resolving disputes, with Vice President JD Vance at the Capitol for a potential tie-break.

Political Pressure and Electoral Considerations

Trump’s involvement has been significant, with him hosting meetings, calling senators, and using social media to pressure dissenters. He has praised supporters like Johnson, Lee, Lummis, and Scott on Truth Social, while criticizing Tillis and Paul.

Electoral considerations are also at play, with Collins facing reelection in Maine, a Democratic-leaning state, and pushing for rural hospital funding to appeal to voters . Tillis’ decision not to seek reelection in 2026 may have freed him to vote against the bill, reflecting the political calculus at play.

Democratic Opposition and Procedural Tactics

Democrats, led by Sen. Chuck Schumer (NY), have opposed the bill, calling it “reckless and irresponsible” and a “gift to the billionaire class” .

Comparative Analysis and Implications

The interplay between these developments highlights the dynamic nature of the legislative process, with the GOP navigating internal divisions while facing Democratic opposition. The following table summarizes the timelines and stakes:

AspectDetails
Bill StatusAdvanced 51-49, vote-a-rama starts Monday, June 30, 2025, at 9 a.m. ET
Fiscal ImpactAdds $3.3 trillion to debt over 10 years, 11.8 million lose insurance by 2034
Conservative DemandsPush for $300 billion Medicaid cut, concerned about $5 trillion debt ceiling
Moderate ConcernsSeek rural hospital funding, face reelection pressures in blue states
Trump’s RoleHeavy lobbying, July 4 deadline, social media pressure on dissenters
House PassageNeeds to pass Senate version, can afford 3 defections, some opposition

The situation remains fluid, with the GOP’s ability to unify behind the bill uncertain. Trump’s push for passage by July 4 adds urgency, but the internal conflicts and Democratic tactics could delay or derail it.

Conclusion

As of June 30, 2025, the Trump tax bill is at a critical juncture in the Senate, with the GOP torn by competing demands between its conservative and moderate wings. Conservatives seek deeper spending cuts, particularly to Medicaid, while moderates are concerned about electoral and social implications. Trump’s aggressive lobbying and the looming vote-a-rama add complexity, with the bill’s fate hinging on GOP unity and Democratic opposition. This analysis, drawing from news reports and legislative documents, provides a comprehensive view for stakeholders monitoring this critical legislative battle.

Key Citations

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