Senate Republicans prepare revisions to Trump’s “Big, Beautiful Bill,” targeting tax breaks, Medicaid, and tipped wage policies.

Senate to Reshape Key Provisions of Trump’s Economic Plan

President Donald Trump’s signature economic proposal, known as the “Big, Beautiful Bill,” is set to undergo critical changes as it moves to the Senate floor for debate next week. Senate Republicans are preparing amendments to several key elements, reflecting internal divisions within the party.

One of the primary targets is the bill’s provision on state and local tax deductions, commonly referred to as SALT. While these deductions are a priority for House Republicans from high-tax states like California and New York, most Senate Republicans have shown little support. Representative Mike Lawler, a Republican from New York, has warned that he may vote against the final version if SALT provisions are eliminated.

In addition, fiscal conservatives in the Senate are pushing for deeper cuts to Medicaid in order to secure greater long-term savings. However, this effort faces resistance from senators representing states with large Medicaid-dependent populations. Senator Josh Hawley of Missouri and Senator Jim Justice of West Virginia have expressed concerns about the impact such changes would have on their constituents.

Another controversial element under review is the bill’s provision to eliminate taxes on tipped wages. Senator Thom Tillis of North Carolina has criticized this measure, arguing that it creates an unfair advantage for workers in the hospitality industry compared to those in other sectors who do not receive tips. Tillis is advocating for either modifying or removing the provision entirely.

The Senate is also expected to drop several House-included policies related to artificial intelligence and the federal judiciary. These issues, while important to some lawmakers, reportedly fall outside the Senate’s budget reconciliation rules, which limit the scope of legislation that can pass with a simple majority.

As the bill enters this new phase of negotiations, the debate highlights growing ideological and regional differences within the Republican Party. While the House version passed with strong support, reconciling the demands of senators from diverse constituencies may prove challenging.

The Senate vote is anticipated soon, though the timeline could shift based on the pace of amendments and intra-party discussions. The outcome will shape not only the fate of Trump’s economic agenda but also the contours of Republican unity heading into the next legislative session.