Federal Reconciliation Package Passes from Senate Back to House
Although lawmakers were set to begin a week-long recess, Senate Majority Leader John Thune (R-SD) kept the upper chamber in session through the weekend as Republicans voted July 1 to advance President Trump’s One Big Beautiful Bill (H.R. 1) before a self-imposed July 4 deadline.
Earlier this week, the upper chamber kicked off the lengthy amendment process known as a “vote-a-rama,” which allows members of both parties to offer changes to the bill. Democrats used the opportunity to introduce a series of messaging amendments, while Republicans sought to refine key provisions.
The floor action followed a narrow procedural vote last Friday to begin formal debate on the reconciliation package. It should be noted that Senator Thom Tillis (R-NC) opposed the motion, citing the Senate bill’s deeper Medicaid cuts relative to the House version. Shortly after his vote, Tillis announced that he would not seek reelection in 2026. Senators Rand Paul (R-KY) and Ron Johnson (R-WI) also initially opposed the motion, citing the measure’s significant impact on the deficit, though Johnson ultimately reversed his position to allow debate to proceed.
Senator Lisa Murkowski (R-AK), whose support had been uncertain, negotiated state-specific provisions to exempt non-contiguous states from certain SNAP reductions and to increase Alaska’s federal Medicaid match rate.
Ultimately, Senator Murkowski and 49 fellow Republican Senators, together with a tie-breaking vote by Vice-President J.D. Vance, approved the One, Big, Beautiful Bill. Senator Susan Collins (R-ME) joined Senators Tillis and Paul in voting against the legislation, along with all 47 Democratic Senators.
The Senate package includes several key changes from the House-passed version:
- Medicaid: More than $1 trillion in cuts over ten years, including a lower cap on the provider tax and new eligibility restrictions.
- SNAP: Roughly $186 billion in reductions, which rely heavily on cost shifts to states to pay for a portion of the benefits and an increased administrative share.
- Renewable energy: Repeal of clean energy tax credits and new excise taxes on certain energy sectors.
- State and Local Tax (SALT) Deduction: A compromise provision raising the deduction cap from $10,000 to $40,000 for five years, rather than 10 years.
- Debt ceiling: A $5 trillion increase (compared to $4 trillion in the House bill). \
- Scoring rules: The bill uses a budgetary loophole to exclude the cost of the tax provisions, which the Congressional Budget Office estimates would add $3.8 trillion to the deficit over a decade.
Looking ahead, the measure now advances to the House for final passage. While some House Republicans have raised concerns about changes to H.R. 1, the White House is applying significant pressure to ensure the package reaches the President’s desk before the July 4 deadline. A final House vote could take place as early as Wednesday, July 2, depending on whether Speaker Johnson can rally the votes.
Public Lands Sale Provision Dropped from Reconciliation Package
A controversial public lands proposal championed by Senate Energy and Natural Resources Committee Chairman Mike Lee (R-UT) was removed from the Senate’s reconciliation package following a ruling from the Senate Parliamentarian and bipartisan opposition.
Initially, the measure would have required the Bureau of Land Management (BLM) and U.S. Forest Service (USFS) to dispose of 0.5% to 0.75% of their respective land holdings across 11 western states. While the stated aim was to expand the housing supply, the sweeping nature of the mandate raised concerns across party lines, particularly around federal overreach, conflicts with local land use plans, and risks to environmentally sensitive areas.
In response to that pushback, Senator Lee floated a narrower alternative focused solely on BLM parcels located within five miles of established population centers. However, the revised version failed to gain any traction.
As a result, the language has been formally dropped from the package. While the provision will not move forward as part of reconciliation, Senator Lee and other supporters are expected to revisit the issue in standalone legislation or future housing-related efforts.