Senate Republicans continue to negotiate the details of the One Big Beautiful Bill Act (H.R. 1) reconciliation package, passed by the House last month by a vote of 215-214. Republican lawmakers and the White House have an internal deadline to finish the bill by July 4.
Key issues in the debate include Medicaid reforms, including new work requirements that would begin in December 2026, the state and local tax (SALT) deduction, which would expand from $10,000 annually to $40,000 under the House-passed bill, as well as numerous energy tax credits that would be phased out to help offset the extension of other tax cuts part of the 2017 Tax Cuts and Jobs Act.
Last week, the Congressional Budget Office (CBO) released a report estimating the package would increase the deficit by $2.4 trillion and leave nearly 11 million more Americans without health coverage. This CBO report was augmented by a separate CBO report that found that the tariffs would reduce the deficit by $2.8 trillion over ten years, due to a reduction in the size of the U.S. economy from retaliatory tariffs imposed by other countries in response to U.S. tariffs.
Argentum remains committed to protecting against potential cuts to Medicaid assisted living and to advance tax credits to help more Americans access and afford long-term care. While the House-passed package did not include a tax credit specific for long-term care, it did include a $4,000 deduction for eligible seniors for tax years 2025 through 2028, and we believe there are still opportunities to include a long-term care specific tax credit such as the Credit for Caring Act (H.R. 2036 and S. 925), which would provide a $5,000 tax credit for long-term care expenses. The legislation is continuing to gain momentum, with 43 House cosponsors and 5 Senate cosponsors.