Senate Passes Sweeping Bill, Cuts Medicaid Heavily

Jul. 1, 2025, 7:03 pm ET

Instant Insight

30-Second Take

  • The Senate narrowly passed the One Big Beautiful Bill Act, a sweeping legislation with significant implications for healthcare and taxation.
  • The bill includes nearly $1 trillion in Medicaid cuts, which critics argue will severely harm healthcare access and hospital operations.
  • The legislation also features tax cuts, changes to gun laws, and a temporary increase in the child tax credit.

+ Dive Deeper

Quick Brief

2-Minute Digest

Essential Context

The One Big Beautiful Bill Act, passed by the Senate on July 1, 2025, with a 50-50 vote and Vice President J.D. Vance casting the tie-breaking vote, is a comprehensive bill that addresses various aspects of U.S. policy. It includes substantial cuts to Medicaid, tax reforms, and other significant changes.

Core Players

  • U.S. Senate – Passed the bill with a narrow margin.
  • Vice President J.D. Vance – Cast the tie-breaking vote.
  • American Hospital Association (AHA) – Criticized the bill for its impact on healthcare.
  • President Trump – Advocated for the bill’s passage by the July 4 deadline.

Key Numbers

  • $1 trillion – Estimated cuts to Medicaid.
  • 11.8 million – Americans expected to lose healthcare coverage.
  • $2,500 – Temporary increase in the child tax credit through 2028.
  • 3.5% – Tax on remittances sent by non-U.S. citizens to family members abroad.

+ Full Analysis

Full Depth

Complete Coverage

The Catalyst

The passage of the One Big Beautiful Bill Act was the result of a lengthy and contentious process, including a “vote-a-rama” that lasted over 24 hours. The bill’s approval was secured by Vice President J.D. Vance’s tie-breaking vote.

“We are deeply disappointed by today’s vote in the United States Senate to advance the One Big Beautiful Bill Act,” said AHA President and CEO Rick Pollack, highlighting the severe impact on healthcare.

Inside Forces

The bill’s journey through the Senate involved intense negotiations and the withdrawal of several amendments, including one by Sen. Rick Scott that would have affected Medicaid enrollment in expansion states.

Senate Majority Leader John Thune and other GOP leaders engaged in a significant whip effort to secure votes, particularly from Sen. Lisa Murkowski, who was concerned about Medicaid and food assistance provisions.

Power Dynamics

The bill’s passage reflects the current power dynamics in Congress, with Republicans pushing through significant policy changes despite strong opposition from Democrats and healthcare advocacy groups.

President Trump’s influence was evident in his push for the bill’s passage by the July 4 deadline, underscoring his continued impact on legislative priorities.

Outside Impact

The bill’s provisions, especially the Medicaid cuts, are expected to have far-reaching consequences for healthcare access and hospital operations. Hospitals may face service line reductions, staff cuts, and increased uncompensated care, leading to potential facility closures in rural and underserved areas.

The tax cuts and other financial provisions could also have broader economic implications, including a potential tax on remittances and changes to gun laws.

Future Forces

The bill now heads back to the House for consideration, where it may face further amendments and challenges. The House Rules Committee is already preparing the bill for floor consideration.

Key areas to watch include the House’s response to the Medicaid cuts, the implementation of tax reforms, and the potential for additional amendments that could alter the bill’s impact.

  • House floor consideration and potential amendments.
  • Implementation timeline for Medicaid cuts and tax reforms.
  • Impact on healthcare access and hospital operations.
  • Broader economic and social implications.

Data Points

  • July 1, 2025: Senate passes the One Big Beautiful Bill Act.
  • July 4, 2025: President Trump’s deadline for the bill’s passage.
  • $1 trillion: Estimated Medicaid cuts.
  • 11.8 million: Americans expected to lose healthcare coverage.
  • 24+ hours: Duration of the Senate’s “vote-a-rama”.

The One Big Beautiful Bill Act represents a significant shift in U.S. policy, with far-reaching implications for healthcare, taxation, and social welfare programs. As the bill moves forward, its impact will be closely watched by policymakers, healthcare providers, and the public.