What’s Inside the Senate Republicans’ Latest Draft of Trump’s ‘One Big Beautiful Bill’
Republican leaders in the U.S. Senate have unveiled a new version of their sweeping budget bill, a key pillar of Donald Trump’s second-term policy agenda, as they race to win over skeptical lawmakers ahead of a self-imposed July 4 deadline.
The updated draft of the One Big Beautiful Bill Act, released early Saturday morning, includes significant changes from the House-passed version, which squeaked through last month by a single vote. The Senate version adds deeper cuts to Medicaid and reworks several provisions to comply with chamber rules.
But the path to passage remains uncertain. Republican lawmakers remain divided on how to fund the bill’s massive tax cuts, which the Congressional Budget Office projects will add nearly $3 trillion to the national debt over the next decade.
Here’s a breakdown of the major provisions in the Senate draft:
🧓 Social Security Tax Relief
Trump pledged on the campaign trail to eliminate taxes on Social Security income. While the House version stopped short, it did offer a temporary increase in the standard deduction—up to $4,000—for seniors aged 65 and older, effective from 2025 through 2028.
The Senate version goes further, proposing a $6,000 tax deduction for older Americans. The benefit would gradually phase out for individuals earning over $75,000 or $150,000 for joint filers.
🏥 Medicaid Overhaul
Medicaid, the healthcare program for low-income and disabled Americans, is one of the biggest targets of the Senate bill. The changes are controversial—even within the GOP.
Key provisions include:
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New work requirements: Childless adults without disabilities would need to work or volunteer at least 80 hours a month starting in December 2026.
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Re-enrollment every 6 months (instead of yearly), with more stringent income and residency checks.
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Lower provider taxes: States would see the limit reduced from 6% to 3.5% by 2031, impacting state Medicaid budgets.
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Stricter eligibility: Parents with children over age 15 would need to meet work requirements.
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$25 billion rural hospital fund added in response to backlash from GOP senators in rural states.
These changes are expected to result in millions losing healthcare coverage.
💸 SALT Deduction Expansion
The bill lifts the state and local tax (SALT) deduction cap from $10,000 to $40,000 for married couples earning up to $500,000. This provision addresses concerns from Republicans in high-tax, Democrat-led states.
However, the expanded cap would only last through 2030, after which it reverts unless extended.
🍽️ SNAP (Food Stamp) Reforms
Changes to the Supplemental Nutrition Assistance Program (SNAP) include:
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Requiring states to shoulder more of the cost.
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Imposing work requirements for able-bodied adults without dependents.
These changes affect over 40 million low-income Americans who rely on SNAP benefits.
⏱️ No Taxes on Overtime or Tips
Fulfilling a signature Trump promise, the bill would eliminate federal taxes on tips and overtime pay.
Other related provisions:
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Allowing interest deductions on car loans—but only for U.S.-made vehicles.
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Raising the child tax credit to $2,500 (House version), with eligibility requiring both parents to have Social Security numbers.
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The Senate version proposes $2,200, but makes it permanent, and allows just one parent to hold a Social Security number.
🌱 Clean Energy Cuts – Gradual Phase-Out
The Senate bill diverges from the House by phasing out Biden-era clean energy tax credits more gradually.
Key points:
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Credits remain fully available for 2024.
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Drop to 60% in 2026, 20% in 2027, and expire in 2028.
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Companies with supply chains tied to “foreign entities of concern” (e.g., China) would be ineligible.
This was a key sticking point for senators in pro-renewable states.
💳 Raising the Debt Ceiling
The Senate version raises the debt ceiling by $5 trillion, higher than the $4 trillion proposed in the House.
Raising the ceiling allows the government to pay for previously approved spending—without doing so risks a government shutdown or default.
🚨 What Happens Next?
The Senate must agree on a final version of the bill before a full vote. Because of the changes, the bill will then return to the House of Representatives, where it is expected to face more challenges.
Some Republicans have already expressed opposition:
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Rep. Mike Lawler (NY) said any Senate bill that retains the $10,000 SALT cap would be “DEAD ON ARRIVAL.”
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Rep. Chip Roy (TX) called the clean energy provisions “not close to enough.”
Trump, meanwhile, continues to urge passage. After the House vote, he wrote:
“It’s time for our friends in the United States Senate to get to work, and send this Bill to my desk AS SOON AS POSSIBLE!”
🧨 Democratic Response
Democrats, though lacking majorities in either chamber, are united in opposition—especially to the cuts to Medicaid and SNAP.
House Minority Leader Hakeem Jeffries blasted the bill as a
“reckless, regressive, and reprehensible GOP tax scam,”
vowing to make it a centerpiece of Democratic campaigns in the 2026 midterms.