Republicans unveiled changes to their wide-ranging tax-and-spending bill late Wednesday night in a key committee that had to approve the amendments before moving the legislation to the House floor. Speaker Mike Johnson and his deputies spent the day and evening toiling behind the scenes to hammer out enough concessions to cobble together the votes in their fractious ranks to push it through the House. When that might happen remained unclear.
Here are a few of the changes:
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Republicans raised the limit on the state and local tax deduction by $10,000, reflecting a key demand from a small group of lawmakers from New York, New Jersey and California. The amendment would set the cap at $40,000 instead of $30,000. The size of the deduction would shrink for people making more than $500,000 a year, rather than the $400,000 level included under the previous version of the bill.
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An even faster phaseout of existing tax credits for low-carbon electricity has been added to the bill. Under the new language, companies building solar-, wind-, geothermal- or battery-powered plants can claim the credit only if they start construction within 60 days of the bill being signed into law and then put the plant in service by the end of 2028. That’s a narrow window that many projects will struggle to meet. There’s an exception for nuclear power: A company building a new nuclear reactor can still claim a significant tax break as long as it starts construction by the end of 2028.
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A provision was removed that would have sold off 500,000 acres of public land in Utah and Nevada. The measure was strongly opposed by Representative Ryan Zinke of Montana, who was interior secretary during President Trump’s first term.
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The date was pushed up for when Medicaid work requirements will be put in place from Jan. 1, 2029, to “not later than December 31, 2026.” States also have the option to select an earlier date to add requirements.
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Around $12 billion in funds were added to the bill that would be used to reimburse states for money spent on border security after the inauguration of President Joseph R. Biden Jr. in 2021. The legislation already included $175 billion in new spending to enforce President Trump’s immigration and detention policy, a measure that was meant to entice Republicans to vote for the package despite other cuts.
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A ban on the use of Medicaid funds for gender transition measures like puberty blockers, hormones and surgical procedures was expanded to include adults, not just children and teenagers.
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