May 20, 2025
House Republicans are aiming to get their megabill through the full House of Representatives and over to the Senate this week, before members return to their districts for Memorial Day. Before that vote, though, the bill could change to garner more GOP votes.
As of this morning, an updated draft of the bill was posted by the House Rules Committee ahead of its 1 a.m. meeting on Wednesday. That version makes changes to the bill’s SNAP and Medicaid provisions, as well as removes two controversial pipeline permitting provisions (of course, some discussions are still ongoing). Here’s a link to the House Rules Committee Website (look for the box labeled “One Big Beautiful Bill”). For more on the changes being contemplated, here’s more from Politico:
(Politico, 5/20/25)
The GOP megabill is undergoing some significant changes in the House as conservative hard-liners, moderates and blue-state Republicans all angle to shape the bill to their liking ahead of a potential floor vote this week.
Conservatives are still pushing for controversial changes to the federal share of Medicaid payments, which could lead to major benefit cuts, but House Republican leadership, moderates and the White House are all still resisting that effort, according to two Republicans granted anonymity to describe the private talks. Medicaid work requirements, though, are expected to be phased in two years, addressing the hard-liners’ push to speed up the previously planned 2029 implementation.
House GOP leaders want President Donald Trump to call off Republican hard-liners who are digging in for deeper Medicaid cuts that are threatening to unravel the “big beautiful bill,” according to a White House official and two senior House GOP aides.
Trump is planning to visit the House Republican Conference meeting on Capitol Hill Tuesday morning, according to two White House officials, a critical step in closing the deal as the clock ticks on Speaker Mike Johnson’s hopes of getting the megabill through the House by the end of the week.
The draft bill, however, includes multiple waivers of those provisions that states can pursue, and those waivers are not expected to substantially change, the Republicans said.
Hard-liners also secured a rough agreement from the speaker over the weekend to speed up the phase-out of clean energy tax credits enacted under former President Joe Biden, though the parameters of how quickly that happens are still a major fight inside the GOP conference. One of the biggest battles is over whether so-called shovel-ready projects will be hit, as hard-liners are pushing for.
Some Republicans bristled at the weekend changes the speaker green-lit. Reps. Andrew Garbarino of New York and Mariannette Miller-Meeks of Iowa, who have been defending many of the tax credits, were both at Pope Leo XIV’s inauguration as GOP leaders agreed to some of hard-liners’ demands to scale them back.
Lawmakers are still negotiating over the cap on the state-and-local-tax deduction, or SALT — a major issue for a group of blue-state Republicans. House Speaker Mike Johnson will meet Monday night with moderates concerned about changes to Medicaid, SALT and federal pensions.
On a call with GOP lawmakers Monday morning, Johnson characterized the latest changes as minor and “technical,” according to two people granted anonymity to describe the private call.
Republican leaders have also changed language in the draft bill before the House Rules Committee that would have barred legal immigrants from receiving SNAP food aid, with significant carve-outs for Cuban nationals that some Florida members had requested. Rep. Don Bacon (R-Neb.) and other centrist Republicans pushed leadership to allow more legal immigrants to receive SNAP. Senate Republicans also made clear the ban in the draft bill would not pass muster in their chamber.
That copy of the bill before the Rules panel — which is set to meet at 1 a.m. Wednesday to take it up — also makes other changes to controversial new cost-sharing requirements for some Medicaid beneficiaries. Those would require some beneficiaries in states that have expanded Medicaid under the Affordable Care Act to pay up to $35 per service.
The initial bill did not have explicit carve-outs for certain types of care despite a committee summary saying that the legislation would have exemptions for primary, prenatal, pediatric and emergency room care. The new version exemption applies to primary care, mental health and addiction treatment.
A GOP Energy and Commerce Committee spokesperson said the changes to the language around the exemptions were to clarify what the bill does.
The new version also omits a Government Accountability Office study on how pharmacy benefit managers, pharmacies, and drugmakers get paid in the prescription drug supply chain. It also removes clawbacks of unobligated funds for a slew of Energy Department programs, including more than $400 million for the Office of Energy Efficiency and Renewable Energy and $8 million for the inspector general.
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Yesterday Governor Hochul’s Office circulated a Press Release regarding the potential impacts to NYS based on the bill as it currently stood over the weekend. Here’s more:
New York State could suffer a $13.5 billion-a-year hit from Congressional Republicans’ proposed budget, according to a fiscal impact assessment released Monday by the Hochul administration.
The so-called megabill would slash about $10 billion in annual federal funding to New York, while shouldering it with $3.3 billion yearly in new Medicaid costs, the state’s analysis found.
Those threats largely stem from proposed work requirements for Medicaid enrollees and an eligibility tweak that would exclude some lawfully present immigrants from accessing federally subsidized health benefits through the Affordable Care Act.
The latter, which was buried in the House Ways and Means Committee’s legislation, would be uniquely devastating to New York because of its impact on the Essential Plan, POLITICO Pro’s Maya Kaufman and Katelyn Cordero reported.
Other provisions would hit New York hard, too.
The state stands to lose $924 million annually as a result of a proposed “penalty” reducing the ACA expansion’s federal Medicaid matching rate for states that use their own money to cover undocumented individuals, according to the impact assessment.
It would also lose $1.6 billion in revenue from a new tax on managed care organizations, thanks to the legislation’s crackdown on the maneuver used to enact it.
Not to mention, the state projects an estimated 1.5 million New Yorkers would become uninsured.
“The proposed changes to federal health care funding would have serious consequences for New York state,” state Health Commissioner James McDonald said in a statement. “Losing coverage for nearly 1.5 million New Yorkers would lead to significantly worse health outcomes for New Yorkers and would put immense strain on our health care system.”
Below are some of the biggest changes being discussed and the expected timeline for this package moving forward.
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Why the bill could change |
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The House Rules Committee will meet on Wednesday, May 21 at 1AM Eastern—that’s not a typo—to set the parameters for House debate on the megabill. At this point, we could also see Republican leadership unveil changes to the bill to appease the various GOP factions that aren’t happy with the current product. For instance, four Republicans voted “present” in last night’s Budget Committee meeting, allowing the bill to move to the Rules Committee but indicating that those four votes aren’t guaranteed on the House floor. As a reminder: for this bill to pass the House, Republican leadership can lose no more than three GOP votes. While some of the changes below could earn votes, those same changes could cause concerns among other GOP members. |
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How the bill could change |
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Below are some of the biggest changes under discussion as of this morning, which House Republican votes those changes could earn, and which it could jeopardize. Speeding Medicaid work reporting requirements |
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Medicaid formula changes |
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State and local tax (SALT) deduction cap increase |
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What happens next |
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Below is a brief summary of the big moments to come for this megabill, if it were to move forward. As always, these timelines can change rapidly—so, take this with a grain of salt if you’re reading this after May 19! |
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Advocacy Corner |
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Tax Reconciliation Package Moving. Take Action on Behalf of NonProfits
Nonprofit organizations are under threat. The House of Representatives is slated to vote as soon as this week on a tax reconciliation package that includes several harmful provisions opposed by NCN that would, if enacted, threaten the nonprofit sector. The bill also includes a new deduction for charitable giving. Read NCN’s chart of the tax provisions and full analysis.
Your voice matters! Thanks to the effective advocacy of nonprofit organizations nationwide, House Republicans removed a provision from the tax bill that would have granted unprecedented authority to the Executive Branch to revoke nonprofit status from organizations without due process. Nonprofits warned that this provision would have allowed Administrations to target charitable organizations based on ideological grounds.
This is important progress in ensuring the tax bill doesn’t harm nonprofit organizations, and validation of our effective collective advocacy. NCN will remain vigilant in ensuring such harmful language isn’t added back as tax legislation moves towards enactment.
Action Alert
Nonprofits should contact their Republican Senators and Representatives and urge them to:
OPPOSE granting unprecedented authority to the Executive Branch to revoke nonprofit status from organizations without due process. This provision allows Administrations to target charitable nonprofits based on ideological grounds. See NCN’s one-pager on why Congress should protect nonprofits from Executive Branch overreach.
OPPOSE new or expanded taxes on nonprofit organizations, including foundations. These proposals divert scarce resources away from essential services, undermine the ability of charitable nonprofit organizations to meet needs in their communities, and put greater strain on government. See NCN’s one-pager on protecting nonprofits in tax reconciliation for more information.
OPPOSE limits on charitable donations as a “pay for” for the bill. These proposals discourage charitable donations made by individuals and corporations, ultimately leaving nonprofits with fewer resources to serve their community.
SUPPORT and EXPAND tax incentives for charitable giving. The bill includes a non-itemizer deduction for charitable giving. Congress should expand the deduction to full scale, as proposed in the Charitable Act, introduced by Sen. Lankford (R-OK), Sen. Coons (D-DE), Rep. Moore (R-UT), and Rep. Pappas (D-NH). See NCN’s one-pager on the Charitable Act for more information.
Republicans hope to enact the package through both chambers by July 4, although internal disagreements could lead to delays.
Read about Nonprofits Under Threat: What’s in the House Tax Bill and How You Can Help
Nonprofits Under Threat: What’s in the House Tax Bill and How You Can Help
Analysis of the draft tax legislation approved by the House Ways and Means Committee and suggested actions for nonprofit advocates.
Read about Initial Analysis of the 2025 Tax Bill and Its Impact on Charitable Nonprofits
Initial Analysis of the 2025 Tax Bill and Its Impact on Charitable Nonprofits
Chart of the implications of specific sections in the draft tax legislation.
Read about Transparency, Evidence, and Rule of Law
Transparency, Evidence, and Rule of Law
Discussion of why policymakers should not include a provision providing authority to the Executive Branch to revoke nonprofit status without due process.
Worth Quoting
On tax exempt status
- “If the Trump Administration can silence universities today, who will be next? This is not just an isolated policy; it’s an existential threat to the entire nonprofit sector.”
— Diane Yentel, president and CEO of the National Council of Nonprofits, Trump’s Tax Fight with Harvard Sends Chill Through Nonprofit Sector, Axios, May 5, 2025.
On the impact of budget reconciliation on nonprofits
- “Nonprofits aren’t political tools — they are lifelines rooted in compassion and service. They honor the dignity of every person, regardless of where they live, how they worship, or whom they love. Budgets are moral documents. And right now, we must decide whether we invest in compassion, justice, and community — or allow politics to tear these supports away.”
— Jill Bennett, CEO of the Utah Nonprofits Association, Letter: Nonprofits are Under Attack by the Trump Administration — And so is the Well-Being of Us All, The Salt Lake Tribune, May 7, 2025.
- “While technical to some, these policy choices have very real consequences here at home. Proposals that reduce charitable giving incentives, impose new taxes or fees, or create instability in nonprofit funding could force organizations to scale back services – or shut down altogether.”
— Kimberly Kolakowski, Executive Director of Firefly and board member at the Iowa Nonprofit Alliance, Opinion: Congress Must Protect Iowa’s Nonprofits in Tax Policy, The Daily Nonpareil, May 6, 2025.
