House Passes Reconciliation Package; Senate Considering Changes

On May 22, the House of Representatives passed their reconciliation package, the One Big Beautiful Bill Act (H.R.1), in a 215-214 vote. The bill included sweeping cuts to Medicaid and Medicare, the Supplemental Nutrition Assistance Program (SNAP), and other welfare programs to pay for President Trump’s new tax plan as well as additional funding for immigration enforcement and border security.

As previously reported by COSSA, the budget reconciliation process has been controversial, even among Republican members of Congress. Representatives Thomas Massie (R-KY) and Warren Davidson (R-OH) were the only two Republicans to vote against the “big, beautiful bill.” Representative Andy Harris (R-MD) voted “present” and Representatives David Schweikert (R-AZ) and Andrew Garbarino (R-NY), missed the vote but both voiced their support. No Democrats voted in favor of the bill.

Following passage of the House bill, Robert F. Kennedy (RFK) Jr., Secretary of Health and Human Services (HHS), published an opinion editorial in the New York Times alongside Mehmet Oz, Administrator for the Centers for Medicare and Medicaid Services, Brooke Rollins, Secretary of Agriculture, and Scott Turner, Secretary of Housing and Urban Development, titled Trump Leadership: If You Want Welfare and Can Work, You Must. In this op-ed, the authors voiced support for the bill and urged Congress to take further action to reform welfare programs.

The One, Big Beautiful Bill Act, also includes significant changes to the current 1.4 percent endowment tax on private colleges and universities. The bill would introduce a tiered system of rates, with a top rate of 21 percent, on institutions with endowments exceeding $2 million per student. It would also eliminate several tax breaks for non-profit organizations, including an exemption on taxes for non-publicly funded research income. The Association of American Universities released a statement opposing many of the provisions, indicating these changes would harm “universities’ ability to provide essential financial aid making college more affordable for students; educate the workforce America needs to maintain its global economic leadership and national security; and conduct the groundbreaking research required to create new cures, save American lives, and make our country stronger, safer, healthier, and more prosperous in the future.”

The bill will now head to the Senate, where it will likely face more contention. As previously reported, Republican Senators, including Sen. Josh Hawley (R-MO), have been outspoken in their objection to the bill, arguing that cutting Medicaid will harm constituents back home, while others, including Sens. Ron Johnson (R-WI) and Thom Tillis (R-NC), have argued against the bill, claiming that it doesn’t include enough spending cuts. Senators are already rumored to be eyeing changes to the House bill but House Speaker, Mike Johnson (R-LA) is pushing the Senate for final passage before July 4.

Stay tuned to COSSA’s continued coverage on Congressional activities.