Senate Bill's Medicaid Cuts and Clean Energy Tax Credit Revisions Set Stage for Policy Fight

On Monday, Senate Republicans unveiled a bill that would significantly reduce Medicaid funding, exceeding the cuts proposed in the House-passed legislation. This move is intended to advance President Trump's domestic agenda. The Senate's bill also aims to preserve or delay the elimination of certain clean-energy tax credits, setting the stage for a major policy debate within the Republican party.

The Senate Finance Committee's proposal mirrors the core elements of the House's version, which Republicans pushed through last month. They are aiming to expedite the Senate's passage and present the bill to President Trump by July 4th. However, the Senate's version differs considerably from the House's, which is likely to make the legislative process more complex and could jeopardize the proposed timeline.

A key difference is the Senate's approach to clean-energy tax credits. The Senate plan proposes a more gradual and less comprehensive phase-out of these credits, which were established during the Biden administration. To offset the costs, the Senate bill includes more substantial and broader cuts to Medicaid.

Furthermore, the Senate proposal expands the application of work requirements for Medicaid recipients. While the House bill focuses on childless adults, the Senate version would extend these requirements to parents of older children. The Senate bill also takes a stricter stance than the House bill on state strategies involving taxes on medical providers and higher Medicaid service payments.