Senate GOP modifies Medicaid provision in Trump's signature 'big, beautiful bill' as in-fighting threatens its passage

 June 27, 2025

Senate Republicans have made concessions to those concerned about Medicaid cuts and other provisions in President Donald Trump's "big, beautiful bill," Fox News reported. This has caused division in the GOP, while worries about a narrow majority could jeopardize its final passage.

Trump is attempting to reduce the budget in his signature legislation, including targeting entitlements. However, some of those cuts include a key provision for Medicaid that is unpopular even among some Republicans.

The bill would cap the Medicaid provider tax rate, which helps states recover costs for their expenditures by taxing providers. In an effort to shore up the votes, Senate Republicans are attempting to placate those worried about cuts that would threaten rural hospitals without state funds to keep them afloat.

The Senate Finance Committee has proposed the creation of a stabilization fund worth $3 billion per year over the next five years. This would offset the cuts and could make the bill more palatable, but Republicans continue to duke it out.

Republicans Divided

Even with such a concession, it's unclear whether the reconciliation bill will pass muster. Meanwhile, Trump has urged Republicans to work together to get this passed before the Independence Day recess.

"Now that we have made PEACE abroad, we must finish the job here at home by passing 'THE GREAT, BIG, BEAUTIFUL BILL,' and getting the Bill to my desk, ASAP. It will be a Historic Present for THE GREAT PEOPLE OF THE UNITED STATES OF AMERICA, as we begin the Celebration of our Country’s 250th Birthday," Trump wrote Tuesday on his Truth Social.

"We are finally entering our Golden Age, which will bring unprecedented Safety, Security, and Prosperity for ALL of our Citizens. To my friends in the Senate, lock yourself in a room if you must, don’t go home, and GET THE DEAL DONE THIS WEEK," Trump urged.

"Work with the House so they can pick it up, and pass it, IMMEDIATELY. NO ONE GOES ON VACATION UNTIL IT’S DONE. Everyone, most importantly the American People, will be much better off thanks to our work together. MAKE AMERICA GREAT AGAIN!"

Another Hurdle

The bill faced another hurdle on Thursday as Senate Parliamentarian Elizabeth MacDonough continued to hack away at many key provisions, The Hill reported. Because it's a budget reconciliation, the bill has to adhere to the Byrd Rule.

Budget reconciliation requires a simple majority rather than the 60 votes usually needed for other legislation. Proposing it this way also prevents a filibuster and is meant strictly for spending issues, so that other legislation can't sneak through without proper scrutiny.

MacDonough has questioned whether several elements, including Medicaid cuts, would comply with the Byrd Rule. One of those included a prohibition on illegal immigrants, refugees, and others with "temporary protected status" from receiving Medicare eligibility.

Worst of all, MacDonough nixed a provision that would deny payments for so-called "gender-affirming care" for minors. This has made Trump frustrated with her, while some are calling for MacDonough's ouster.

There are many objections and issues that must be settled before the bill passes. Although Trump would like to see it happen before July 4, there are too many obstacles just from Republicans.

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