Donald Trump’s Tax Bill To Undergo Major Change: What To Know

Republican Senator Rick Scott of Florida unveiled an amendment to President Donald Trump’s One Big Beautiful Bill Act that would further shrink Medicaid spending.

Roughly 71 million people are enrolled in Medicaid, a government health insurance program that provides free or low-cost coverage to eligible low-income individuals and families, including children, pregnant women, seniors and people with disabilities.

Newsweek has contacted Scott’s office for comment via email outside regular working hours.

Why It Matters

Republicans in Congress are seeking to cut Medicaid spending in order to pay for the extension of Trump’s Tax Cuts and Jobs Act 2017, which is set to expire at the end of this year.

A new analysis by the Congressional Budget Office found that the latest version of Trump’s bill would result in 11.8 million more Americans being uninsured by 2034 and would cut more than $1.1 trillion from Medicaid, Medicare and Obamacare—more than $1 trillion of which would come from Medicaid alone. Republicans have argued that their changes would incentivize work and prevent fraud.

What To Know

The amendment would block new enrollees in Medicaid expansion states from receiving the enhanced 9-to-1 Federal Medical Assistance Percentage (FMAP) if they are able-bodied and have no dependent children.

Current Medicaid enrollees in expansion states would retain the 9-to-1 rate, even if they leave the program temporarily to work. The lower FMAP rate for new enrollees would take effect in 2031.

According to a report by The Hill, the amendment, if passed, would save an additional $313 billion in federal spending.

It is co-sponsored by GOP Senators Cynthia Lummis of Wyoming, Ron Johnson of Wisconsin, Mike Lee of Utah and Finance Chair Mike Crapo of Idaho.

The amendment has also won the support of other Republicans, with Florida Representative Randy Fine saying on X, formerly Twitter, that he is “all in.”

What People Are Saying

Senator Rick Scott, a Florida Republican, on X, formerly Twitter, on June 29: “My proposal to fix FMAP will make the Big Beautiful Bill even more aligned with President Trump’s goal to balance the budget, grow the economy, and put Americans first.

“We cannot allow Dem-led blue states to use YOUR tax dollars to give illegal aliens Medicaid benefits, exploit this safety net, and jeopardize help for those who truly need it.”

Senate Majority Leader John Thune, a South Dakota Republican, told reporters on Sunday, per Semafor: “We think it’s a really good policy, and I think a lot of us are going to be supporting it. It’s great policy and something that’s there’s a high level of interest in our conference of making it part of the final bill.”

House Minority Leader Hakeem Jeffries, a New York Democrat, on X: “Republicans are jamming an insane and destructive bill down the throats of the American people in the dead of night. It’s the largest cut to Medicaid in American history. The massive tax breaks for billionaires will add trillions to our national debt. Keep the pressure on.”

What Happens Next

The Senate voted 51-49 late Saturday to proceed with the bill, teeing off the next steps toward passing it, likely this week. It would then head back to the House for a final vote before being signed into law by the president.