Congressional Republicans continue to negotiate the details of the budget reconciliation bill, known internally as the “Renewing the American Dream Act,” and which President Trump has dubbed, the “One Big Beautiful Bill.” Markup hearings will be held this Tuesday in the Ways and Means and Energy and Commerce Committees, which have jurisdiction over the tax and Medicaid portions of the package and issues relevant to Argentum.
Over the weekend, Republican lawmakers released the text of the proposal to achieve the $880 billion in spending cuts that were earmarked for the House Energy and Commerce Committee to identify. The proposal includes broad reductions in the Federal matching funds (“FMAP”), but does not include the per capita caps sought by many conservatives. An analysis by the Congressional Budget Office projects that this proposal would reduce spending by $715 billion and result in 13.7 million Americans losing healthcare coverage.
The proposal calls for work requirements for “able-bodied” adults, more frequent eligibility checks, limits on states ability to use provider taxes to finance their portion of Medicaid expenses, and would impose cost sharing for Medicaid expansion enrollees who earn 100%-133% of the federal poverty level. The plan would also formally repeal the nursing home staffing mandate, which was struck down by federal courts. Argentum continues to advocate for no cuts to impact access to care for seniors participating in Medicaid assisted living programs.
Meanwhile, the Ways and Means Committee is reviewing the tax portion of the package, including one of the biggest issues of how to handle state and local tax deductions, which were capped at $10,000 under the 2017 Tax Cuts and Jobs Act. Several House Republicans are using this as leverage in negotiations, as the caps will expire this year and have said they will oppose the reconciliation package if the caps are not significantly raised or eliminated. Other tax issues include President Trump’s proposal on a new top tax rate of 39.6% for individuals earning more than $2.5 million annually ($5 million for married couples), which has gone against longstanding Republican policy. Trump is also pushing to close the carried interest loophole, which lawmakers have opposed.
Argentum remains hopeful that the tax portion of the package will include our priorities, including the Credit for Caring Act (H.R. 2036 and S. 925), to establish a tax credit of up to $5,000 to help offset long-term care expenses for eligible family caregivers, a concept of which was identified by President Trump during the 2024 campaign.