As time ticks down to the July 4 recess, Republican senators are working to pass an important piece of legislation. They need to make sure that that happens by President Donald Trump’s desk by that date. This bill, which proposes to raise the nation’s debt limit by $4 trillion, is designed to allow for more borrowing to cover the nation’s expenses. However, it is meeting with serious pushback from inside the party, especially on its major provisions and fiscal impacts.
The Treasury Department has begun sounding alarms on the dire necessity of raising the debt limit by mid-July. If we wait too long, we’ll be confronted with catastrophic financial disasters. While that’s all great, key GOP senators are sounding uncertain notes about some of its most critical pieces. Still, they express scant excitement about a House-passed provision. This new provision adds billions of dollars of funding by further raising the SALT cap and allows state and local tax deductions.
Senator Rand Paul of Kentucky, along with Senators Ron Johnson of Wisconsin, Mike Lee of Utah, and Rick Scott of Florida, argue that the legislation does not sufficiently prioritize saving taxpayer money. Since the bill was first introduced in the House, none have been as outspoken as Johnson. He claims that it fails to make long-term cuts in federal spending.
“We’re on our way to cannibalizing ourselves,” – Jim Justice, Senator from West Virginia.
Senator Susan Collins and Senator Lisa Murkowski represent at least the appearance of the GOP’s moderate wing. Their support is critical to moving the bill forward. However, their support is still very much in doubt. Murkowski has expressed concern over the impending expiration of ACA subsidies and the dangers of removing Medicaid access for millions of Americans.
Senator Jim Justice concurs on almost all other points of the bill. He has expressed wider worries about what it could mean for the future. He argues that the cuts they’re proposing could create catastrophic problems for states. Senator Tommy Tuberville of Alabama has been particularly vocal about the threat provider taxes pose to his state. He made the case that these funds are absolutely essential to Medicaid.
“You start cutting that out, we’ve got big problems,” – Tommy Tuberville.
The conversation between senators has largely shifted to how to address growing administrative costs associated with food stamp programs. The bill proposes shifting 5% of these costs to state governments, prompting further debate about the impact on state budgets. Senator John Hoeven of North Dakota echoed this sentiment, arguing that the input of sitting governors would be critical to crafting real solutions.
“We don’t know if the states have really looked at the impacts of some of this yet,” – John Hoeven.
Also, others have expressed concern that the bill would adversely impact rural healthcare providers. Sen. Senator Josh Hawley of Missouri cautioned that a short-term freeze on tax revenue would be financially destabilizing for rural hospitals. Senators are starting to speak out more vehemently against this unacceptable direction. They understand that fiscal responsibility doesn’t mean slashing vital community services.
Moderate Republicans like Collins and Murkowski are expected to play pivotal roles in shaping the final outcome of the legislation. Particularly important in this process is their openness to negotiate. How far their concerns about specific provisions go in determining the level of bipartisan support the bill might receive.
Senator Thom Tillis from North Carolina has supported the energy tax credits that have been included in the bill. Senators John Curtis of Utah and Jerry Moran of Kansas are now on-record with their support. They have voiced grave concerns about the pace at which these credits would be phased out under its current structure.
“I think there’s going to have to be some adjustment,” – John Thune, indicating a willingness among some senators to reconsider aspects of the proposal.
As T&I’s deadline approaches, Republican senators are deeply split over how to move forward on this huge piece of legislation. With fiscal hawks like Paul and Johnson pushing back against perceived overspending and moderates advocating for more comprehensive considerations regarding social programs, the path forward remains unclear.
