• Senate Republicans have unveiled their version of President Trump's tax bill, which includes significant cuts to Medicaid.
• The proposed legislation features stricter Medicaid eligibility requirements and a reduction in provider tax limits.
• House Republicans are resistant to the Senate's SALT deduction cap, putting the unity of the GOP at risk.
• Critics warn the Medicaid cuts could leave millions without health coverage.

The Senate Republicans have proposed a draft of President Trump's "Big, Beautiful Bill," which intends to deliver aggressive cuts to the Medicaid program while retaining the current $10,000 cap on state and local tax (SALT) deductions. This proposal has sparked significant backlash from House Republicans, particularly those from high-tax states who favored raising the SALT cap to $40,000, as passed in the House version. Senators assert that ongoing negotiations are necessary to address these concerns, according to Los Angeles Times and HuffPost.

The Senate's proposal includes stricter Medicaid eligibility requirements, affecting enrollees who are parents of children over the age of 14, and aims to further limit provider taxes that states use for funding, lowering the allowable tax from 6% to 3.5% by 2031. Many Republican senators, including Josh Hawley of Missouri, have expressed concern that these restrictions could threaten the viability of rural hospitals, highlighting the deep intra-party conflicts this proposal may create, according to Bloomberg and CBS News.

While the House-passed version predicted a $2.4 trillion increase in the national debt over the next decade, the Senate version is seen as making deeper cuts and restrictions to further curb expenses without significantly affecting tax cuts for wealthier Americans. These potential changes are seen as critical to align with the party’s vision of a more fiscal-responsible agenda, as noted by Senate Finance Committee Chair Mike Crapo, according to The Hill and Newsweek.

As the Senate prepares for a vote before the self-imposed July 4 deadline, the evolving discussions over Medicaid and the SALT deduction are reflective of broader tensions within the GOP as they attempt to achieve unanimous support for legislation that is central to Trump's domestic policy agenda. Critics, including several Democratic senators, have raised alarms over the extensive Medicaid cuts that could further destabilize health coverage for millions, according to The Hill and The Hill.