Senate Majority Leader John Thune (R-S.D.) and his team of negotiators are facing mounting complications in their drive to secure passage of a sweeping legislative package aimed at implementing President Trump’s economic agenda by the July 4 deadline. The process, already burdened by internal Republican divisions, is becoming increasingly tangled as GOP senators raise objections across multiple fronts.
Concerns are intensifying among various Republican senators over deep spending cuts targeting key social safety net programs, particularly Medicaid and the Supplemental Nutrition Assistance Program (SNAP). At the same time, fiscal conservatives are doubling down on demands for deeper deficit reduction. One particular point of contention is a controversial proposal from these conservatives to eliminate what they describe as over $200 billion in “waste, fraud and abuse” from the Medicare program—an idea fraught with political risk due to Medicare’s broad popularity.
Further friction has emerged over disagreements between Senate Republicans and the Trump-aligned White House over making some corporate tax breaks permanent. These include provisions such as 100 percent bonus depreciation for short-term investments and immediate expensing of research and development costs.
With a narrow majority of 53 seats, Senate Republicans can afford only three defections if they hope to pass what Trump has dubbed his “big, beautiful bill.” But with key senators already signaling opposition, that margin is rapidly shrinking.
Senator Rand Paul (R-Ky.) is among the dissenters. He has flatly stated his opposition, declaring he will vote “no” because the legislation includes language that would raise the debt ceiling by $4 trillion. Likewise, Senator Ron Johnson (R-Wis.) expressed strong resistance, branding himself a “hard no” due to the bill’s failure to return federal spending to prepandemic levels.
The following are the major issues that risk derailing the bill in the Senate:
Medicaid Cuts Stir Unease Among GOP Moderates
Republican Senators Susan Collins (Maine), Lisa Murkowski (Alaska), Jerry Moran (Kansas), and Josh Hawley (Missouri) are all threatening to vote against the bill if it results in reductions to Medicaid benefits for their constituents. These senators are still waiting to see the official language from the Senate Finance Committee regarding how Medicaid will be addressed.
Leadership in both the Senate and House has insisted that the bill will not slash Medicaid benefits. However, the Congressional Budget Office (CBO) released a report on Wednesday estimating that approximately 10.9 million Americans would lose their health insurance if the bill passes, primarily due to changes involving Medicaid and Affordable Care Act provisions.
“I hope not benefit cuts, that’s my bottom line,” Senator Hawley said Thursday, underscoring his concern.
Specific proposals drawing criticism include limits on states’ ability to use provider taxes to boost their federal Medicaid reimbursements and new requirements for individuals earning between 100 percent and 138 percent of the federal poverty level to pay higher copays for medical services.
SNAP Spending Reductions Raise Red Flags
Several GOP senators, including Collins and Moran, have also voiced objections to proposed cuts to SNAP totaling around $267 billion. The Senate Agriculture Committee is working to finalize its section of the budget reconciliation bill, with hopes of unveiling the text next week.
However, Agriculture Committee Chairman John Boozman (R-Ark.) acknowledged that the issue remains unresolved. “We’re still working on it,” Boozman told The Hill. When asked if it had been resolved, he replied, “I wish it was.”
Senator Collins expressed specific concerns about the bill’s provisions that would shift much of the administrative responsibility for SNAP onto the states. She also objected to measures that could penalize states with outdated systems for monitoring benefits.
Push for Greater Deficit Reduction Gains Momentum
Senator Ron Johnson’s call for increased deficit reduction is gaining traction among fellow Republicans. Though the bill is projected to cut spending by roughly $1.6 trillion over the next ten years, several senators, including Senate Budget Committee Chairman Lindsey Graham (R-S.C.), argue that this is insufficient.
“I think the bill needs to be more fiscally responsible,” Graham told reporters Thursday.
In response, some Republicans are advocating a proposal to target alleged “waste, fraud and abuse” within Medicare Advantage. The proposal, led by Senator Bill Cassidy (R-La.), seeks to address what he describes as the practice of insurance companies “upcoding” diagnoses to secure higher Medicare reimbursements.
Supporters argue that the measure is a focused effort to curb abuse rather than cut legitimate Medicare services. They also point out that progressive lawmakers, including Senator Jeff Merkley (D-Ore.) and Representative Alexandria Ocasio-Cortez (D-N.Y.), support the initiative. However, it remains divisive among Republicans.
Hawley voiced strong opposition on Thursday, saying, “It would be insane” to reduce Medicare funding. Despite assurances that the measure targets fraud rather than core benefits, his stance reflects the sensitivity around altering a program that millions of seniors depend on.
Defense-Related Spectrum Auction Sparks Alarm
Another sticking point comes from Senate Armed Services Committee members Mike Rounds (R-S.D.) and Deb Fischer (R-Neb.), who are opposing a House-passed provision that would auction off certain government-owned spectrum frequencies. These senators fear the move could interfere with the Pentagon’s use of those frequencies for vital radar and communication operations.
Rounds described the current House language as a “deal-breaker” and is pressing for adjustments that would ensure the Defense Department retains necessary access throughout the auction period.
“It has to be modified,” he insisted. “They’ve indicated that they would protect the spectrum,” Rounds added, but emphasized the need for those protections to be explicitly written into the Senate version of the bill.
Corporate Tax Break Disputes Continue
While less visible than the Medicaid or SNAP debates, disagreements over corporate tax policy are also clouding the path forward. Some Senate Republicans are frustrated by resistance from the Trump-aligned White House regarding the permanence of certain corporate tax breaks. These include the full expensing of research and development expenses and bonus depreciation.
These provisions, aimed at encouraging business investment, are popular among supply-side conservatives. But the White House has expressed reservations about cementing them into law without corresponding offsets—adding yet another layer of complexity to the ongoing negotiations.
In sum, Thune and his team are now juggling multiple conflicting priorities as they try to meet the July 4 goal. From health care entitlements and food assistance to national defense and tax reform, the issues plaguing the bill are varied and politically sensitive. With only a slim margin for error, the Majority Leader must either broker compromises that satisfy a broad range of senators or risk the entire package collapsing under the weight of its own contradictions.