Senate GOP Releases Key Portion of Trump Agenda Bill—Here’s What’s Inside

The committee’s revisions to the One Big Beautiful Bill Act cover many of the biggest agenda items in the legislation.

Senate Finance Committee Chairman Mike Crapo (L) and Treasury Secretary Scott Bessent (R) arrive for a hearing on Capitol Hill on June 12, 2025. Andrew Harnik/Getty Images

The Senate Finance Committee on June 16 released a revised draft of its section of the One Big Beautiful Bill Act to implement President Donald Trump’s agenda.

The committee text covers most of the biggest agenda items in the legislation, including the federal debt ceiling, energy and tax credits, and other budget items. Its release comes as the rest of the Senate continues to work on revisions to the House-passed legislation.

In spite of a request from House Speaker Mike Johnson (R-La.) that changes to the House’s bill be limited—in part because of the difficulties in passing the bill during the first attempt—the proposal includes some major revisions and omissions that could cause trouble when the bill returns to the House.

Committee Chairman Mike Crapo (R-Idaho) described the bill as a boon to the middle class.

“I look forward to continued coordination with our colleagues in the House and the Administration to deliver President Trump’s bold economic agenda for the American people as quickly as possible,” Crapo said in a June 16 statement accompanying the bill text.

But there may be difficulties in the Senate as several provisions touch on issues regarding which some upper chamber Republicans have already drawn red lines. Senate Majority Leader John Thune (R-S.D.) can spare no more than three defections to pass the bill.

Here’s what’s in the Senate Finance Committee proposal.

$5 Trillion Debt Ceiling Bump

As directed by the Senate’s budget blueprint, passed earlier this year to begin the process of crafting the bill in the House, the legislation would raise the federal debt ceiling by $5 trillion.

That provision is likely to irk several House conservatives, including members of the House Freedom Caucus who have set a red line against such a steep increase. The House’s version of the bill would raise the ceiling by $4 trillion, already a concession for some budget hawks.

Sen. Rand Paul (R-Ky.) has said this provision makes it impossible for him to support the legislation.

The Treasury Department is currently using “extraordinary measures” to keep the government afloat, but those are expected to run out around August. Congress will need to increase the debt ceiling to avoid a default.

Medicaid

The Senate’s bill would go further than the House in making cuts to Medicaid.

The House version would impose new work requirements and increase states’ burden in funding Medicaid. This latter provision had already alienated Sen. Josh Hawley (R-Mo.), who addressed his GOP colleagues in a New York Times op-ed titled “Don’t cut Medicaid.”

The Finance Committee’s revisions would further cut the entitlement program by restricting the rate that states can tax health care providers to pay for Medicaid. Currently, the rate is 6 percent; it would gradually be lowered to 3.5 percent by 2031.

$10,000 SALT Cap

One of the fiercest debates in the House is over the State and Local Tax (SALT) deduction, which allows voters to deduct state taxes from their federal tax burden.

Purple district House Republicans from blue states sought—and won—a bump in the cap to $40,000. That concession was essential to the bill’s passage through the lower chamber.

The Senate’s draft would do away with the increase, however, bringing it back to $10,000, a figure that is extremely unlikely to pass muster in the House if it’s retained.

Deregulation of Silencers, Several Gun Types

While the House legislation would have removed a $200 excise tax on silencers, which reduce the sound of a gunshot, the Senate’s bill goes a step further.

It would extend the tax cut to short-barreled rifles, short-barreled shotguns, and “any other weapons” as defined by the National Firearms Act of 1934.

Wrapping in the “Stop Harassing Owners of Rifles Today” Act, introduced by Sen. Roger Marshall (R-Kansas), the bill would also remove the paperwork requirements and other regulations imposed by the 1934 law on the affected weapon and attachment types.

Medicaid-Funded Transgender Procedures Banned

The bill would also ban the use of Medicaid funds for any type of transgender-related procedures.

The bill lists several specific procedures that are banned, as is prescribing estrogen or testosterone at levels that go beyond what an individual of the same age and sex would produce naturally.

Limited exceptions are provided for treatment of medically verified disorders of sexual development, including intersex conditions.

Green Energy Tax Credits

The legislation would phase out all Inflation Reduction Act green energy tax credits by 2036, with many expiring by 2028.

Wind and solar tax credits will begin phasing out in 2026 and will receive no federal funding by 2028. Nuclear, hydropower, and geothermal tax credits won’t be fully phased out until 2036.

Child Tax Credit Reduced

Where the House version of the bill would have increased the Child Tax Credit to $2,500 per child, the Senate bill will reduce that to $2,200.

Lawrence Wilson contributed to this report.