Senate Republicans Unveil $4.2 Trillion Tax Bill Ahead of July 4 Deadline

Senate Republicans have unveiled a comprehensive $4.2 trillion tax and spending bill just days ahead of President Donald Trump’s July 4 deadline. This late-night release underscores the party's urgency to finalize negotiations and pass the legislation amidst intense political pressure.

The 940-page bill, published on Friday night, follows weeks of internal debates and compromises. Republican leaders made substantial adjustments to attract both conservative and liberal legislators. One of the most significant changes involves increasing the cap on the deduction of State and Local Taxes by five years. The current cap of $10,000 would be raised to $40,000, addressing a key concern for senators from high-tax states.

Another notable change extends the scheduled federal Medicaid provider tax cap to 2028. Senators, including Thom Tillis of North Carolina, had strongly opposed the previous timeline, as his state was set to lose over $30 billion in funding.

The revised legislation includes a $25 billion fund for rural hospitals, aimed at addressing healthcare concerns in underserved regions. Of this amount, $20 billion will be allocated during the 2028 and 2029 fiscal years. This provision emerged after intense negotiations that narrowed a wide gap between earlier proposals ranging from $15 billion to $100 billion.

Several provisions from the original draft were dropped after consultations with the Senate parliamentarian, leading to further behind-the-scenes adjustments to ensure the bill could move forward procedurally.

The bill’s initial Senate vote is scheduled for Saturday at noon. If all steps are completed on time, a final vote may occur in the early hours of Sunday. The House of Representatives is expected to be recalled next week to vote on the legislation, with Republican leaders aiming to complete the process before the July 4 holiday, as urged by President Trump.