01 July 2025

BREAKING TAX NEWS | Senate vote sends OBBBA tax and spending cut bill back to House

The Senate July 1 approved the One Big, Beautiful Bill Act (OBBBA) to extend Tax Cuts & Jobs Act (TCJA) provisions beyond 2025 and cut mandatory spending. (The official title was struck pursuant to reconciliation rules, however.) The vote was 51-50 with Vice President JD Vance breaking the tie. Senators Susan Collins (R-ME), Thom Tillis (R-NC), and Rand Paul (R-KY) were the Republicans to vote "no."

A perfecting amendment to the substitute made changes that are understood to include:

  • For wind and solar, omits the excise tax and extends the tax credit timeline such that facilities retain full credit value if they begin construction within one year of the DOE
  • Addition of the restoration of taxable REIT subsidiary asset test provision
  • Omitting third-party litigation funding reform, which was ruled to violate reconciliation rules
  • Medicaid changes

Passage followed the more-than-24-hour "vote-a-rama" that included consideration of Democratic motions to commit and other amendments while, off the floor, leaders worked to secure the requisite GOP votes for passage amid concerns over Medicaid, Inflation Reduction Act (IRA) energy tax credits, and the overall fiscal impact of the bill. Leaders could only lose three Republican votes and pass the bill in the Senate, and the late focus of negotiations in the overnight hours was on winning the vote of Senator Lisa Murkowski (R-AK).

The House is expected to take up the Senate bill tomorrow (July 2), on track for the bill to potentially be enacted by July 4. The Rules Committee has posted the updated version of the bill is available here.  

Below is a summary of select amendments and votes.

 

Member

Amendment details

Vote

Schumer (D-NY)

Motion to commit back to the Finance Committee with instructions: if health care costs go up, tax cuts reduced

Not agreed to, 47-53

Markey (D-MA)

Motion to commit back to the Finance Committee re: rural hospitals

Not agreed to, 49-51

Klobuchar (D-MN)

Point of order re: unfunded mandate regarding SNAP

Not agreed to; motion to waive 51-48

Wyden (D-OR)

Motion to commit back to the Finance Committee re: Medicaid

Not agreed to, 47-53

Coons (D-DE)

Motion to commit re: unnecessary red tape for eligible Medicaid recipients

Not agreed to,48-52

Lujan (D-NM)

Prevent SNAP nutrition cuts

Not agreed to, 49-51

Reed (D-RI)

Prevent Medicaid cuts that lead to nursing home closures

Not agreed to, 49-51

Blunt Rochester (D-DE)

Prevent cuts to Medicaid funding for labor and delivery units

Not agreed to, 48-52

Ossoff (D-GA)

Prevent Americans from losing health insurance due to proposed cuts to the Affordable Care Act

Not agreed to, 47-53

Warren (D-MA)

Protect Consumer Financial Protection Bureau from funding cuts

Not agreed to, 47-53

Cornyn (R-TX)

Reduce FMAP for the Medicaid expansion to 80 percent in expansion States that provide State-funded coverage to aliens who are not qualified aliens and who are or have been charged with or convicted of certain acts

Not agreed to, 56-44 (60-vote threshold)

Merkley (D-OR)

Prohibit all federal government officials from promoting or offering cryptocurrency

Not agreed to, 47-53

Murray (D-WA)

Strike provision to defund Planned Parenthood

Not agreed to, 49-51

Blackburn (R-TN)

Motion to waive the Budget Act with respect to the Blackburn amendment #2401, which would close "loophole" allowing immigrants to use Medicaid for 90 days until their citizenship or lawful presence can be verified

Not agreed to, 53-47

Kaine (D-VA)

Motion to commit back to the Finance Committee to prohibit any federal agency from carrying out mass terminations

Not agreed to, 47-53

Blumenthal (D-CT)

Motion to commit back to Armed Services Committee re: property received from other nations

Not agreed to, 47-53

Gallego (D-AZ)

Strike provisions that cut Medicaid funding for substance abuse treatment

Not agreed to, 47-53

Hassan (D-NH)

Motion to commit back to the Finance Committee with instructions to protect families and small businesses from increasing costs resulting from Trump's trade war with Canada

Not agreed to, 48-52

Duckworth (D-IL)

Motion to commit back to the Agriculture Committee with instructions re: SNAP

Not agreed to, 49-51

Schiff (D-CA)

Motion to commit to back the Agriculture Committee to prevent families with children from losing food assistance

Not agreed to, 47-53

Kennedy (R-LA)

Prohibit the use of Defense Production Act funds without the approval of Congress

Not agreed to, 42-58

Alsobrooks (D-MD)

Motion to commit back to the Finance Committee with instructions for no tax cuts for individuals with more than $10m in income

Not agreed to by voice vote

Kelly (D-AZ)

Motion to commit back to the Finance Committee with instructions for no tax cuts for individuals with more than $100m in income

Not agreed to by voice vote

Murphy (D-CT)

Motion to commit back to the Finance Committee with instructions for no tax cuts for individuals with more than $500m in income

Not agreed to by voice vote

King (I-ME)

Motion to commit back to the Finance Committee with instructions for no tax cuts for individuals with more than $1b in income

Not agreed to by voice vote

Padilla (D-CA)

Ensure that the bill does not increase the deficit from 2025 through 2034, relative to the current law baseline

Not agreed to, 47-53

Bennet (D-CO)

Motion to commit back to the Finance Committee with instructions to expand the Child Tax Credit by ensuring big corporations and the ultra-wealthy pay their fair share

Not agreed to, 47-53

Collins (R-ME)

Motion to waive the Budget Act with respect to the Collins Amendment, which would amend the IRS Code of 1986 to apply a 39.6% individual income tax rate, provide $50 billion for the Rural Health Transformation Program and expand the providers eligible for RHTP to community health centers and other facilities

Not agreed to, 22-78

Kennedy (R-LA)

Motion to waive the Budget Act with respect to the Kennedy amendment, which would double the maximum that teachers can deduct from their taxable income for spending their own money on school supplies

Not agreed to, 54-46 (60 votes required)

Wyden (D-OR)

Motion to commit the bill back to the Finance Committee with instructions to strike its cuts to clean energy

Not agreed to, 47-53

Hirono (D-HI)

Motion to waive the Budget Act with respect to the Hirono amendment to eliminate a program of qualified elementary and secondary education scholarships for public, private or religious schools

Not agreed to, 50-50

Warnock (D-GA)

Motion to commit the bill back to the Finance Committee with instructions to protect U.S. clean energy manufacturing jobs

Not agreed to, 48-51

Lee (R-UT)

Motion to waive the Budget Act with respect to the Lee amendment (#2745) to terminate wind and solar tax credits

Not agreed to, 21-79

Kim (D-NJ)

Motion to waive the Budget Act with respect to the Kim amendment to strike a provision relating to limitations on certain Medicaid payments to home health care workers

Not agreed to, 48-52

Ernst (R-IA)

Disqualify anyone earning more than $1 million from collecting unemployment insurance

Agreed to by voice vote

Sanders (I-VT)

Motion to waive the Budget Act with respect to the Sanders amendment to cut the cost of prescription drugs under Medicare in half and expand Medicare to cover dental, vision and hearing

Not agreed to, 47-53

Blackburn (R-TN)

Strike moratorium on state AI regulations

Agreed to 99-1

Rosen (D-NV)

Protect tax credits for solar and wind energy

Not agreed to, 47-53

Kennedy (R-LA)

Medicaid eligibility verification

Agreed to by voice vote

Hickenlooper (D-CO)

Residential clean energy credit extended until the end of 2026

Not agreed to, 48-52

Shaheen (D-NH)

Preserve energy efficient home improvement credit, residential clean energy credit, energy efficient home credit, energy efficient commercial buildings deduction

Not agreed to, 49-51

Warner (D-VA)

Aviation safety

Not agreed to, 50-50

Van Hollen (D-MD)

Strike $100m OMB fund

Not agreed to, 50-50

Klobuchar (D-MN)

SNAP implementation

Not agreed to, 45-55


Contact Information

For additional information concerning this Alert, please contact:

Washington Council Ernst & Young

  • Any member of the group, at (202) 293-7474.

Document ID: 2025-1384