Update: Federal Megabill Status

July 1, 2025

The Senate has passed the Republican megabill by a vote of 51-50, with Republican Senators Thom Tillis of North Carolina, Susan Collins of Maine, and Rand Paul of Kentucky — opposed. The bill’s latest text became public less than an hour before the vote. 

The House Rules Committee has already begun to debate the bill before putting it on the floor for a full vote.  If the House changes anything in the bill it just received from the Senate, once it passes the House it will have to be returned to the Senate for another vote, exposing it to all of the procedural tactics Senator Dems just used to slow the bill down and try to kill it.  

It is commonly held that the longer a bill hangs out in the ether without being disposed of (one way or another) by lawmakers the more problems will develop as people READ the bill and as long as lobbyists and others continue to pressure lawmakers to think a certain way. There is every reason to believe the President will immediately land on any House lawmaker willing to state (for the record either before the vote or during) that they will vote no. For all of these reasons and more, I think the House will now try to move at warp speed, and whip any Republican member that gets out of line.

Over the last 24 hours all eyes were on Alaska Senator Lisa Murkowski who stated for the record that she knew people across the country ‘would not benefit’ from passage of the bill (with a tone in her voice that told everyone she was measuring her words carefully) however the sweeteners that were added to the Senate bill for Alaska that ultimately got Murkowski to ‘yes’ were apparently too good to pass up.  Had Murkowski voted down the bill, it would have failed in the Senate.  There’s an article from The Bulwark (below) on the Senator from Alaska.

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Here’s some great information from the Congressional Progressive Caucus Coalition:

Now the bill heads back to the House, where a handful of Republicans have claimed they could vote the bill down. Whether they’ll make good on those claims remains to be seen. After all, numerous House Republicans had major qualms with the House version of the megabill but went on to support it without getting everything they wanted—and that was when the stakes were arguably lower. They’re now three days from their self-imposed deadline to get the bill to the President’s desk. 

All that being said: until the House votes, this is not a done deal. 

Senate Republicans used a so-called wraparound amendment to make a host of last-minute changes to the megabill to win holdouts’ votes. Those changes include: 

  • Delayed Supplemental Nutrition Assistance Program (SNAP) cuts for certain states. In an effort to appease senators from Alaska, the bill will delay a provision shifting SNAP costs to states for the first time, but only for states with sufficiently high “payment error rates.” This will likely apply to Alaska, DC, Florida, Georgia, Maryland, Massachusetts, New Jersey, New Mexico, New York, and Oregon. This will create a perverse incentive for states to pursue more errors to delay cuts. 
  • Bandaid for rural hospitals. The bill’s Medicaid cuts are expected to be devastating to rural hospitals, many of which may close if the bill becomes law. The bill now includes $50 billion in an effort to soften the blow for those hospitals. 

Below I’ll summarize some of the most important things to know about the Republican megabill as it stands now, notable impacts on specific issues and communities, and—should the bill become law—key dates in the months and years ahead. This summary is not exhaustive.

I know a lot of folks who read this have spent the last several days monitoring many hours of Senate debate and amendments, so I’ll start with a hat tip to all those working tirelessly to analyze this gargantuan legislation and inform the public about its impacts. I see you. 

WHAT TO EXPECT UNDER REPUBLICAN MEGABILL 

This bill will give more to the richest Americans and corporations, while taking from those who have the least. Yale’s Budget Lab found that the bill will result in the bottom 40% of American households losing income, while the top 0.1% gain an extra $118,000. These giveaways to the ultra-wealthy, corporations, and Big Oil are coupled with billions of dollars for the already-bloated Pentagon budget and the Trump immigration agenda, which is tearing families and communities apart. 

All of this is paid for by taking health care and food assistance from millions: nearly 20 million people are expected to lose their health care under this bill. These coverage losses will result in higher out-of-pocket costs, more medical debt, and more evictions as families struggle to keep up with the cost of health care. Folks who cannot cover those costs will go without needed prescriptions and forego appointments, like prenatal care.  

WHAT TO EXPECT FOR HEALTH CARE

  • New work reporting requirements under Medicaid. This new red tape alone would kick millions off their health insurance—without actually promoting employment. Most Medicaid enrollees already work, and most within the minority who do not are caring for family members, have a disability, or attend school. People who lose coverage due to work reporting requirements suffer long-term consequences: Arkansas data shows that half struggle to pay off medical debt and nearly two-thirds delay taking medications. 
  • New paperwork requirements to “re-prove” Medicaid eligibility. This added red tape results in people who are Medicaid-eligible losing insurance due to paperwork errors or processing delays. 
  • Hurting states’ ability to fund Medicaid programs. A new cap on Medicaid provider taxes could force states to slash Medicaid payment rates for health care providers—which, in turn, may force some providers to close. One study found more than 300 rural hospitals could cut back on the care they offer or close entirely due to this bill. 
  • Killing tax credits that lower families’ health care costs. The bill lets tax credits that help families afford their insurance premiums expire, raising their costs. For example, older Americans will pay an extra $1,200 annually, on average, for their current health care plans under this bill. 
  • Enacting a backdoor abortion ban. The bill bars Medicaid payments to Planned Parenthood, where 4-in-10 Medicaid recipients have received care, for one year. This would risk the closure of almost 200 health centers across 24 states, jeopardizing access to care for more than 1.1 million patients. 

WHAT TO EXPECT FOR FOOD ASSISTANCE 

  • New work reporting requirements for people who receive food assistance through SNAP—including for older Americans and parents of children as young as 13-years-oldSimilar to Medicaid reporting requirements, this new red tape would have little effect on the number of people working, but would hurt working families, including children. 
  • Forcing states to cut back on or end food assistance. The bill pushes SNAP benefit costs onto states for the first time since the program’s creation during the Great Depression. This is expected to force states to cut back on the assistance hungry Americans can receive, narrow SNAP eligibility, or end their food aid programs entirely.
  • Preventing food assistance from keeping up with rising costs. In 2021, at Congress’ direction under a law then-President Trump signed, the Biden administration updated the grocery budget the Agriculture Department uses to determine the monthly SNAP allotment for the first time in 15 years. The change meant, on average, an extra $12-$16 per person per month for SNAP households. Republican members of Congress strongly criticized this increase, and this bill would forestall similar updates in the future. 

WHAT TO EXPECT FOR AMERICANS’ COSTS 

  • New out-of-pocket costs under Medicaid. This bill would let states charge low-income Americans up to $35 per health care service. Research shows that people seek care less when they’re subject to out-of-pocket costs, and that such costs correlate with worse patient health.
  • Making energy bills more expensive. The bill ends or restricts several tax credits for clean energy, electric cars, and home efficiency improvements, raising Americans’ energy costs. 
  • Cutting funding for the Consumer Financial Protection Bureau (CFPB). This watchdog agency has returned $20 billion to defrauded Americans and investigated consumer complaints against companies. Without adequate resources, CFPB cannot recoup Americans’ costs when companies rip them off. 
  • Raising student borrowers’ costs. By limiting options for students to repay their loans, this bill could force the average borrower to pay thousands of dollars more each year.

WHAT TO EXPECT FOR CHILDREN & YOUNG ADULTS

  • Kicking about 2.6 million U.S. citizen kids off the child tax credit. The bill would deny the child tax credit—an essential tool for combatting child poverty—to U.S. citizen kids whose parents do not have Social Security Numbers. In addition, children who do not have Social Security Numbers would continue to be excluded from the credit. 
  • Cutting off access to food assistance and school meals. SNAP cuts in the bill are expected to impact 16 million kids. Kids who lose even some of their SNAP benefits become more likely to skip medical care as their families try to make ends meet. Many could also lose access to school meals

WHAT TO EXPECT FOR IMMIGRANT FAMILIES

  • Cutting off immigrants’ access to basic needs. The bill excludes refugees, asylees, human trafficking and domestic violence victims, and other non-exempt immigrants from Medicaid, Medicare, the Children’s Health Insurance Program (CHIP), and SNAP.
  • Handing ICE billions to imprison immigrants and take parents from their children. This bill includes $45 billion to construct immigrant jails—a 365% increase to ICE’s detention budget, rendering ICE’s detention budget 50% larger than that of the U.S. federal prison system. 
  • Taxing remittances. The bill slaps a 3.5% tax on money that immigrants in the U.S. send abroad. A remittance tax could worsen economic insecurity in those countries and prompt more migration to the U.S. People with Social Security Numbers may claim credits to offset the remittance tax. 

WHEN POLICIES TAKE EFFECT

The tables below highlight important dates to know as policies from the Republican megabill take effect, should this bill become law. These lists are not exhaustive.

These tables also highlight timing gimmicks within the bill to shield its GOP backers from accountability and limit benefits for ordinary Americans. Major cuts take effect after the 2026 midterms, delaying their full impact until after lawmakers face re-election. Meanwhile, tax breaks for the wealthy last longer—such as a permanent estate tax exemption—while provisions like the tipped income deduction expire as the Trump administration ends.

HEALTH CARE — KEY DATES

FOOD ASSISTANCE — KEY DATES

ENDING CLEAN ENERGY INCENTIVES — KEY DATES

TAX CHANGES — KEY DATES

 
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I couldn’t resist sharing this with everyone.
More on Senator Murkowski’s big pay day here:

The haphazard budget is almost over the finish line.

Joe, Perticone,  The Bulwark

Polar payoff

The business proposition of organized crime isn’t complicated: Parasitic gangsters suck the hard-earned money out of good citizens’ wallets to line their own pockets and deliver kickbacks up the chain of command. In the United States Senate, Lisa Murkowski has made Alaska into pretty important turf. Her unique ability to waffle on major deals or rebel against major nominations in the Trump era has put her in a prime position to collect when it’s time.

So last night and well into the early hours of this morning, Republican leaders turned their attention to Murkowski. They may have titles like “chairman” or “majority leader” or “whip,” but for at least 24 hours no one doubted who the boss really was.

To appease Murkowski, Republicans initially sought two special carveouts for Alaska: One would exempt Alaska from cuts to the SNAP food-assistance program for people with low incomes, and the other would create an Alaska-shaped exception to Republicans’ efforts to gut Medicaid. Because the bill had to conform to the Senate’s strict rules for budget-reconciliation bills, the parliamentarian threw out the Medicaid exemption. But they kept the SNAP one—by making it so that states with elevated error rates in their payments could delay implementing work requirements. Yes, it literally would pay to have an error-prone system.

Other major bosses that Republicans tried to buy off included Sens. Rand Paul (R-Ky.), Susan Collins (R-Maine), and Thom Tillis (R-N.C.). Among other offers, GOP leadership proposed eliminating an excise tax on solar and wind energy and doubling the rural hospital fund (a pocket of money that was there to undo the harm caused by the other parts of the bill they were passing) to $50 billion through 2030.

They weren’t won over. Fresh off an announcement that he will not seek re-election, Tillis felt comfortable calling the bill a sham that will wreak havoc on the health care system. Collins was less vocal in her opposition, but it didn’t seem like Republican leaders saw her as gettable. For Paul, there was a brief discussion about lowering the debt ceiling from a $5 trillion increase to just $500 billion. That was not entertained for long, as it would hand Democrats a major leverage point likely later this year and no other Republican besides Paul actually cares about the national debt anymore.

So Murkowski became the final senator to court in order to get the necessary 50 votes on their swamp water budget. (Budget-reconciliation bills can’t be filibustered, hence the 50-vote threshold; Vice President JD Vance ultimately cast the deciding vote.)

Ironically, Murkowski has played this role before only to scoff at the idea of a “polar payoff.” In 2017, when Republicans were seeking to repeal and replace the Affordable Care Act, then-Senate Majority Leader Mitch McConnell sought to allow Alaska—and Alaska only—to access a multi-billion-dollar fund. The legislation reserved $182 billion for states with high health insurance premiums, but one percent of that fund was specifically dedicated to states with premiums at least 75 percent higher than the national average; only Alaska met that threshold.

To Murkowski’s credit, she saw through the cynicism of the kickback, saying at the time, “Let’s just say that they do something that’s so Alaska-specific just to, quote, ‘get me.’ Then you have a nationwide system that doesn’t work. . . . That then comes crashing down and Alaska’s not able to kind of keep it together on its own.”

When Republicans attempted to repeal Obamacare again later that year, they also sought carveouts for Alaska to get Murkowski over the finish line. Among these was a proposal for grandfathering native Alaskans into Medicaid to exempt them from expansions that were set to be rolled back several years later. Alaska’s low population density would have also helped it obtain special access to federal funds.

Nonetheless, Murkowski held firm and refused to help Republicans rip apart the Affordable Care Act.

Less than a month ago, it seemed like we’d see the same show again. Murkowski promised to make sure that “Alaskans and people around the country are not impacted in a negative way” (emphasis ours).

That didn’t last. On Tuesday, Murkowski voted to gut Medicaid for the nation (in addition to all the other components of this bill). Instead of raising a principled objection to stop it from happening, she suggested she would try to work in the future to make the very thing she just allowed to happen less bad.

“My hope,” she told reporters after the vote, “is that the House is gonna look at this and recognize that we’re not there yet.”

When a reporter asked Murkowski (quoting Rand Paul) whether the deal Republicans struck to obtain her vote counted as a “bailout” for Alaska, Murkowski glared at him silently for thirteen seconds before defending herself and saying “I find that offensive.”

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Center for Budget and Policy Priorities Release, 7/1/25:

Statement of Sharon Parrott, CBPP President, on passage of Senate Republican reconciliation bill:

Following a series of middle-of-the-night backroom deals, and less than an hour after the final language was unveiled, Senate Republicans voted to pass a bill that would raise food and health care costs on families, increase poverty and hunger, and take health coverage away from millions of people while doubling down on costly tax cuts for the wealthy and corporations.

The Senate Republican bill’s federal Medicaid cuts are even deeper than the massive House cuts, making it more likely that states would cut their programs and putting rural hospitals and other community health providers at even greater long-term risk of closure.

House Republicans, many of whom looked to the Senate to craft a bill that was less damaging than the House bill, must stand up for their communities and reject it.

The more people have learned about the bill, the more opposition has grown. Now we will learn whether House Republicans, with time to reflect on the damage this agenda would cause and the ways the Senate made the bill worse, are as thoughtful as the people they serve.

Just days ago, some House Republicans expressed opposition to the additional Medicaid cuts the Senate was considering. Those additional cuts are in the Senate Republican bill that the House is expected to vote on as soon as tomorrow.

The Senate Republican bill would cut Medicaid by nearly $1 trillion, compared to $800 billion in the House Republican bill. The deeper cuts translate into larger harmful impacts.

The bill also would expand the House Republican bill’s provision that takes Medicaid coverage away from people who don’t meet a red-tape-laden work requirement by applying it to parents enrolled through the Medicaid expansion who have children older than 13.

Working parents who get tripped up by red tape, parents who get laid off and are looking for work, parents who lose their jobs when they get sick or need to care for a sick child — as well as adults without children who have disabilities, are between jobs, or are working — would lose access to the health care they need to work, to care for their children, and to beat treatable illnesses.

Relative to the House Republican bill, the Senate version would make it even harder for some states to finance their Medicaid programs. Senate Republicans know the bill would hurt rural hospitals — that’s why they added a face-saving temporary fund, but it won’t rescue rural providers when the funding runs dry and the permanent cuts to Medicaid and Affordable Care Act (ACA) marketplace coverage remain. This is particularly true because the revised Senate fund gives the Health and Human Services secretary significant discretion in how the funds would be allocated. Rural providers need people in their communities to have health coverage they can count on. Without that, more rural hospitals will close and more people with and without coverage will be cut off from care they need.

The Senate Republican bill also would take health coverage away from even more immigrants living and working in the U.S. lawfully than the House bill would. The Senate bill would take away federal funding of Medicaid and Children’s Health Insurance Program coverage for refugees, people granted asylum, certain victims of sex or labor trafficking, and certain victims of domestic violence, among others. This ban includes children, and as in the House bill, it also would take away Medicare, ACA premium tax credits, and food assistance through SNAP from these groups. Despite countless misleading statements, immigrants in the country without a documented status are already ineligible for all of these programs; everyone who would lose health coverage and food assistance because of this bill is living lawfully in the U.S. (One anti-immigrant health provision in the House bill was not included due to a parliamentarian ruling.)

The Senate Republican bill would also raise families’ grocery costs, taking food assistance away from millions of people, including children and veterans, and forcing unaffordable costs on states. When states can’t pay those costs, they would be left with two choices — take SNAP benefits away from large numbers of people or end their SNAP programs entirely.

Again, it is clear that at least some Senate Republicans understand how damaging the provision is — they created a preposterous carve out to delay implementation of the cost-shift for states with the highest error rates in the country as a way to secure the votes they needed. But delaying for a handful of states a harmful provision that could unravel our most important anti-hunger program as a national program would not undo its damage.

Even as the Senate Republican bill would make deeper health care cuts, it continues the House’s approach of large tax cuts for the wealthy, including raising the amount heirs can inherit tax free from the largest estates to $30 million per couple and extending a deduction for business owners that would deliver more than half its benefits to millionaires.

The Senate bill would cost about $3.3 trillion when you remove the gimmick of assuming it is free to extend tax cuts. That is basically the same cost as extending all of the 2017 tax law’s expiring tax cuts for families — including millionaires — without any cuts to Medicaid and SNAP.

House Republicans should step back and find the courage to say no to any bill that would raise costs and take health coverage and food assistance away from people struggling to afford the basics — all while making deficits and debt soar and exposing our economy to more long-term risk.

But at the very least, as House Republican leaders seek to jam the Senate bill through the House, concerned House Republicans should follow through on their promise not to support a final bill that threatens access to Medicaid coverage and reject it.

If they don’t, they, along with their Senate counterparts, will own its impacts. Unfortunately, it is their constituents who will pay the price for their poor leadership.