• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

3

Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

3

Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
PoliticsCongress

Senate GOP restores Medicaid cuts to Trump tax package

By
Rachel Cohrs Zhang
Rachel Cohrs Zhang
,
Erin Durkin
Erin Durkin
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Rachel Cohrs Zhang
Rachel Cohrs Zhang
,
Erin Durkin
Erin Durkin
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
June 29, 2025, 6:52 PM ET
The Congressional Budget Office has estimated that the legislation could lead to millions of people losing health coverage.
The Congressional Budget Office has estimated that the legislation could lead to millions of people losing health coverage. Getty Images

Senate Republicans restored major Medicaid cuts to Donald Trump’s signature economic legislation, re-fashioning a key provision to overcome a procedural obstacle.

Recommended Video

Spending cuts to the health insurance program for the poor and disabled partially offset revenue losses from tax cuts in the measure and are a crucial demand of GOP fiscal conservatives.

The revision helps Republicans shore up the spending cuts they need to fund the bill, but it could also alienate three crucial senators — Susan Collins of Maine, Lisa Murkowski of Alaska and Thom Tillis of North Carolina — who have been pushing to scale back the Medicaid cuts.

Senate Republican Leader John Thune is trying to navigate competing demands from conservatives and moderates as he rushes to pass the massive tax and spending package to meet a July 4 deadline Trump has set for congressional approval.

The Senate’s legislative rules-keeper had judged a series of key health care provisions in the legislation ineligible for a special procedure Republicans are using to bypass the Senate’s normal process so they can avoid making concessions to Democrats. 

That earlier decision swept aside $250 billion in spending cuts fiscal conservatives had sought.

But Senate Parliamentarian Elizabeth MacDonough ruled acceptable a revised provision that would limit states’ ability to tax health care providers to help fund Medicaid, Senate Budget Committee Democrats said in an email on Sunday.

It wasn’t immediately clear how much budget savings the new version would produce.

The Congressional Budget Office has estimated that the legislation could lead to millions of people losing health coverage. The scorekeeper found that an earlier iteration of the Senate bill would lead to 11.8 million people losing health benefits by the end of the decade.

Earlier: Trump Tax Bill Hits $250 Billion Health-Care Snag in Senate

The revised provision is likely bad news for HCA Healthcare Inc. and Tenet Healthcare Corp., as hospitals are again facing potential cuts to Medicaid funding.

States often use the provider taxes, within some already existing rules, to draw down federal funding and increase payments to facilities like hospitals.

The House version of the provider tax provision, which is less aggressive than the Senate’s draft, would have saved the federal government $89 billion over a decade, according to congressional budget analysts.

Alaska, Biden Rules

The Senate’s rules-keeper also nixed measures that would’ve boosted some hospital outpatient payments and Medicaid federal matching rates for Alaska and Hawaii, according to Democrats on the Budget Committee. The measures had been included as Thune sought to win over support, including from Alaska’s Murkowski, who eventually helped advance the legislation after expressing hesitations.

Read More: Murkowski Votes to Advance Megabill After Securing Alaska Wins

The parliamentarian also said provisions aimed at blocking efforts to streamline federal health care enrollment and a Biden-era nursing home minimum staffing requirement weren’t in compliance with chamber rules. That could threaten billions in savings for the tax bill.

The Congressional Budget Office, when considering a similar House-passed measure aimed at blocking implementation the enrollment regulations until 2035, estimated $167 billion in savings over the next decade, while placing a moratorium on the nursing home staffing rule would save $23 billion.

The Senate version of the legislation, the centerpiece of Trump’s economic agenda, makes permanent individual and business tax breaks enacted in 2017, while adding temporary new breaks for tipped and overtime workers, seniors and car-buyers. 

The bill would add hundreds of billions of dollars in new spending for the military, border patrol and immigration enforcement. To partly pay for the revenue losses, the bill reduces spending on Medicaid, food assistance for low-income Americans and financial aid to college students.

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter will deliver clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Authors
By Rachel Cohrs Zhang
See full bioRight Arrow Button Icon
By Erin Durkin
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

w
BankingFederal Reserve
Trump on new Fed Chair Kevin Warsh: ‘Do your own thing’ but don’t lose your way like Jerome Powell did
By Will Weissert, Michelle L. Price and The Associated PressMay 23, 2026
4 minutes ago
rabb
PoliticsElections
How a ‘proud troublemaker’ Democratic socialist beat the system in Philadelphia by 15 points
By Marc Levy and The Associated PressMay 23, 2026
8 minutes ago
Trump to force foreigners to apply for a green card abroad—but those who provide ‘economic benefit’ or serve ‘national interest’ may be able to stay
PoliticsImmigration
Trump to force foreigners to apply for a green card abroad—but those who provide ‘economic benefit’ or serve ‘national interest’ may be able to stay
By Rebecca Santana, Gisela Salomon and The Associated PressMay 23, 2026
41 minutes ago
Trump AI and crpto czar David Sacks sits next to Meta CEO Mark Zuckerberg at a dinner table in the White House as Zuckerberg turns to Sacks and says something.
AIAmerican Politics
Tech billionaires convinced Trump to back off an AI executive order. But much of MAGA favors AI regulation
By Jeremy KahnMay 22, 2026
18 hours ago
f
PoliticsCongress
‘You kind of ruined it with your trans obsession’: House points fingers as Smithsonian Women’s museum funding fails
By Lisa Mascaro and The Associated PressMay 22, 2026
24 hours ago
kirk
North AmericaSocial Media
Fired bird conservationist settles with state of Florida over Charlie Kirk dispute for $485,000
By Hannah Schoenbaum and The Associated PressMay 22, 2026
1 day ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
2 days ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
23 hours ago
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
AI
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
22 hours ago
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
3 days ago
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
Success
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
By Preston ForeMay 22, 2026
24 hours ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.