Republican Sens. John Barrasso of Wyoming, John Thune of South Dakota, Mike Crapo of Idaho and Lindsey Graham of South Dakota speak to reporters after passage of their sweeping tax break and spending cut bill on Tuesday, July 1, 2025. (Photo by Ashley Murray/States Newsroom)

This report has been updated.

WASHINGTON — U.S. Senate Republicans approved their signature tax break and spending cuts package Tuesday with a tie-breaking vote cast by Vice President JD Vance, following days of tense, closed-door negotiations that went until the few last minutes of a marathon amendment voting session.

The 51-50 mostly party-line vote sends the legislation back to the House, where GOP leaders hope to clear the bill for President Donald Trump’s signature this week. But frustrations throughout the conference over changes made in the Senate could delay or even block final approval. 

Republican Sens. Susan Collins of Maine, Rand Paul of Kentucky and Thom Tillis of North Carolina voted against approving the legislation over concerns it would not benefit the country’s finances or Republican voters.

Changes made in final negotiations were not immediately clear or publicly available.

Majority Leader John Thune said the passage marked “a historic day.”

“We’re very excited to be a part of something that is going to make America stronger, safer and more prosperous, and it really starts with the agenda that President Trump laid out when he was running last year.

“He talked about modernizing our military, securing our borders, restoring energy dominance in this country, bringing tax relief to working families and low income taxpayers in this country, and doing something about the runaway, spiraling spending and debt,” the South Dakota Republican said minutes after the vote.

“So this was an incredible victory for the American people, and we as a team are delighted to be a part of it.”

The bill now heads back to the House. The chamber’s Committee on Rules is expected to meet Tuesday afternoon, which will be the final stop for the bill before it reaches the House floor.

Thune said he believes Senate Republicans have given the House “a really strong product.”

“I think we took what they sent us and strengthened and improved upon it. And so I’m hopeful that now, when it gets sent over there, as they deliberate about how they want to handle it, we’ll find the votes that are necessary to pass it and want to put it on the president’s desk,” he said.

Trump praised the Senate’s passage on his Truth Social media platform, saying “Almost all of our Great Republicans in the United States Senate have passed our ‘ONE, BIG, BEAUTIFUL BILL.’”

He added: “We can have all of this right now, but only if the House GOP UNITES, ignores its occasional “GRANDSTANDERS” (You know who you are!), and does the right thing, which is sending this Bill to my desk. We are on schedule — Let’s keep it going, and be done before you and your family go on a July 4th vacation.”

Several House conservatives have railed against the Senate version, including Reps. Andy Ogles of Tennessee, Ralph Norman of South Carolina and others.

House Speaker Mike Johnson issued a joint statement with House Republican leaders saying the chamber “will work quickly to pass the One Big Beautiful Bill that enacts President Trump’s full America First agenda by the Fourth of July. The American people gave us a clear mandate, and after four years of Democrat failure, we intend to deliver without delay.”

“Republicans were elected to do exactly what this bill achieves: secure the border, make tax cuts permanent, unleash American energy dominance, restore peace through strength, cut wasteful spending, and return to a government that puts Americans first,” the Louisiana Republican said in the statement that included House Majority Leader Steve Scalise of Louisiana, Majority Whip Tom Emmer of Minnesota and conference chair Lisa McClain of Michigan.

Alaska Sen. Lisa Murkowski , whose support had been unclear until the vote, and Majority Whip John Barrasso, of Wyoming, left the chamber to catch an elevator together just after 9:30 a.m. Eastern.

Asked if the bill was in the hands of the parliamentarian, Murkowski quipped, “I think it’s in the hands of the people that operate the coffee machine.”

Barrasso said “Yes” when asked if it would pass this morning.

Murkowski: ‘difficult and agonizing legislative 24-hour period’

Flooded by reporters after the vote, Murkowski said “we do not have a perfect bill by any stretch of the imagination.”

“My hope is that the House is gonna look at this and recognize that we’re not there yet, and I would hope that we would be able to actually do what we used to do around here, which is work back and forth in the two bodies to get a measure that’s gonna be better for the people in this country and more particularly, for the people in Alaska,” she said.

“This is probably the most difficult and agonizing legislative 24-hour period that I have encountered, and I’ve been here quite a while, and you all know I’ve got a few battle scars underneath me,” Murkowski added. “But I think I held my head up and made sure that the people of Alaska are not forgotten in this, but I think that there is more that needs to be done, and I’m not done.”

“I am gonna take a nap, though,” she said.

When asked about Murkowski’s decision to vote for the bill, Thune said, “She, as you know, is a very independent thinker and somebody who studies the issues really, really hard and well. And I’m just grateful that at the end of the day, she included what the rest of us did, or at least most of the rest of us did, and that is that this was the right direction for the future of our country.”

Democrats react

Senate Democrats walking off the floor seemed somber, a sentiment that Senate Leader Chuck Schumer said also extended to Republicans after the bill’s passage.

“On the Republican side, when the bill passed, there was a bit of somberness that I don’t think was expected, and that’s because they knew deep in their hearts how bad this bill is for them, their states and the Republican Party,” Schumer said.

“When people start losing their Medicaid, when they start losing their jobs, when their electric bills go up, when their premiums go up, when kids and parents lose SNAP funding, the people of America will remember this vote,” the New York Democrat continued.

Criticism poured in from others as well, including the nonpartisan Committee for a Responsible Federal Budget, which likened the Senate’s bill passage to jumping “off a budget cliff.”

“The level of blatant disregard we just witnessed for our nation’s fiscal condition and budget process is a failure of responsible governing. These are the very same lawmakers who for years have bemoaned the nation’s massive debt, voting to put another $4 trillion on the credit card,” the organization’s president Maya MacGuineas said in a statement.

CRFB estimates the Senate version of the bill would add $600 billion to the national deficit just in 2027.

The nonpartisan Congressional Budget Office released a calculation Sunday showing the bill would add $3.25 trillion to deficits over 10 years.

Trump weighs in ahead of vote

Trump told reporters on Tuesday morning before leaving for a Florida visit to the “Alligator Alcatraz” immigrant detention site that “it’s very complicated stuff” when asked about Senate Republicans’ debate over spending cuts.

“We’re going to have to see the final version. I don’t want to go too crazy with cuts. I don’t like cuts. There are certain things that have been cut, which is good. I think we’re doing well,” Trump said. “We’re going to have to see, it’s some very complicated stuff. Great enthusiasm as you know. And I think in the end we’re going to have it.”

The heart of the nearly 1,000-page legislation extends and expands the 2017 tax law to keep individual income tax rates at the same level and makes permanent some tax breaks on business investments and research and development costs.

The bill would also put in motion some of Trump’s campaign promises, including no tax on qualifying tips, overtime or car loan interest, but only for a few years.

And it slashes spending on the Medicaid program for low-income people and some people with disabilities as well as shifting significant costs of the federal Supplemental Nutrition Assistance Program, or SNAP, to states for the first time. It also overhauls federal education aid.

It would also bolster spending on border security and defense by hundreds of billions of dollars, including line items for the “golden dome” missile defense system and additional barriers along the southern border.

The measure would provide a substantial funding increase for federal immigration enforcement for detention and removal of people without permanent legal status, aiding the president in carrying out his campaign promise of mass deportations.

The Senate version of the bill also would revive the Radiation Exposure Compensation Act fund, a bipartisan measure championed by Sen. Josh Hawley of Missouri. The fund provides money to victims of certain types of cancer and surviving family members in several states affected by the United States atomic bomb testing program and radioactive waste left behind. 

Uranium miners would also be eligible under the measure. While reviving the fund has received wide bipartisan approval in the Senate, the House has not shown the same support.

The Senate bill would raise the debt limit by $5 trillion, a figure designed to get Congress past next year’s midterm elections before the country would once again bump up against the borrowing limit.

On to the House

House approval is far from guaranteed.

Johnson can only lose four Republicans if all lawmakers in that chamber attend the vote. Several GOP members have voiced frustration with how the Senate has reworked the legislation, signaling an uphill climb for the bill.

House Ways and Means Chair Jason Smith said as he left the Senate cloakroom just after 9:20 a.m. Eastern that lawmakers are “getting closer to a bill signing on July Fourth.”

“If you followed this journey over the last six months, over and over, people said that we could not accomplish a budget (reconciliation bill). We did. They said we would never pass it out of the House. We did. The Senate is going to pass it. The House is going to pass it, and the president’s going to sign it into law,” the Missouri Republican said.

Three amendments succeed

The Senate had adopted three amendments to the bill following an all-night amendment voting session, known as a vote-a-rama.

Tennessee Republican Sen. Marsha Blackburn was able to remove language from the package that would have blocked state and local governments from regulating artificial intelligence for five years if they wanted access to a $500 million fund. That vote was 99-1 with only North Carolina’s Tillis voting to keep the language in the package.

Blackburn said the change was necessary because lawmakers in Congress have “proven that they cannot legislate on emerging technology.”

Senators approved an amendment from Iowa GOP Sen. Joni Ernst by voice vote that would disqualify “anyone making a million dollars or more from being eligible for unemployment income support.”

Louisiana Republican Sen. John Kennedy was able to get an amendment adopted by a voice vote that would move up the date when Medicaid administrators must begin checking the Social Security Administration’s death master file to determine if a new enrollee is alive before adding them to the health program. It was set to begin on Jan. 1, 2028, but will now begin one year earlier.

Senators rejected dozens of amendments offered by both Democrats and Republicans, some of which deadlocked on 50-50 votes. Maine’s Collins and Alaska’s Murkowski broke with their party several times to vote with Democrats.

National private school voucher program

Hawaii Democratic Sen. Mazie Hirono tried to eliminate a sweeping private school voucher program that’s baked into the reconciliation package, but that vote failed 50-50. Collins, Nebraska Republican Sen. Deb Fischer and Murkowski voted in support.

The original proposal called for $4 billion a year in tax credits beginning in 2027 for people donating to organizations that provide private and religious school scholarships.

But the parliamentarian last week deemed the program to not comply with the “Byrd Bath,” a Senate process named for the late Sen. Robert Byrd, forcing senators to rework the program.

Details on the finalized version of the program remain unknown as the final bill text has not been released.   

Safety funding for Virginia airport across from D.C.

Virginia Democratic Sen. Mark Warner tried to add language to the bill that would have increased safety funding for airports near Washington, D.C., and established a memorial for the victims who died in a crash this January. The vote failed on a tied 50-50 vote, with Collins, Kansas GOP Sen. Jerry Moran and Murkowski voting with Democrats in support.

“Colleagues, we all know that on January 29 of this year, 67 individuals lost their lives when a military helicopter and a passenger jet collided near Reagan National Airport. This tragedy underscores the need for more safety improvements at National Airport,” Warner said. “The reconciliation bill increases, actually doubles, the amount of rent that National and Dulles pay the government but doesn’t use any of that money to make those airports and the people who use them any safer.”

He argued there was “no good rationale for increasing those rents and not using them for aviation safety.”

Texas Republican Sen. Ted Cruz spoke against Warner’s amendment, saying the rents for the two airports in Virginia near the nation’s capital haven’t been updated in decades.

“The federal government originally calculated the rent in 1987 at $7.5 million dollars, massively below market rates,” Cruz said. “This bill increases that to $15 million, still dramatically below market rates.”

Cruz — chairman of the Committee on Commerce, Science and Transportation — said the legislation includes $12.5 billion for the Federal Aviation Administration to “transform the air traffic control system” and said his panel is looking into the collision in order to prevent something similar from happening again. 

Trump budget director’s office targeted

Maryland Democratic Sen. Chris Van Hollen also got within one vote of having an amendment adopted when he tried to remove a section from the bill that would increase funding for the White House budget office by $100 million.

“This is at a time when (Federal Emergency Management Agency) grants to many of our states have been canceled, grants for law enforcement have been frozen, grants for victims of crimes are on hold,” Van Hollen said. “That is not efficiency. That is creating chaos and uncertainty. And I ask my colleagues, why in the world would we want to send another $100 million to OMB?”

Wisconsin Republican Sen. Ron Johnson opposed the efforts, saying “the Office of Management and Budget needs to identify budgeting and accounting efficiencies in the executive branch. They need the resources to do it.”

The amendment was not added to the bill following another tied 50-50 vote with Collins, Murkowski and Paul voting with Democrats in favor.

Had GOP leadership wanted either of those proposals added to the package, they could have had Vance break the tie, but they did not.

Collins loses vote on rural hospital fund

Maine’s Collins tried to get an amendment added to the legislation that would have increased “funding for the rural health care provider fund to $50 billion dollars and expand the list of eligible providers to include not only rural hospitals but also community health centers, nursing homes, ambulance services, skilled nursing facilities and others.”

Collins said the additional $25 billion in funding for the fund would be paid for by “a modest increase in the top marginal tax rate, equal to the pre-2017 rate for individuals with income above $25 million and married couples with income above $50 million.”

Collins’ amendment was subject to a Senate procedural limit known as a budget point of order. She was unable to get the votes needed to waive that on a 22-78 vote.

Oregon Democratic Sen. Ron Wyden spoke against Collins’ proposal, calling it “flawed,” and introduced the budget point of order against her amendment.

“The danger Senate Republicans are causing for rural hospitals is so great, Republicans have had to create a rural hospital relief fund so they can look like they are fixing the problem they are causing,” Wyden said. “It is a Band-Aid on an amputation. It provides just a tiny fraction of the nearly $1 trillion in cuts the bill makes to Medicaid. It would be much more logical to simply not cut $1 trillion from Medicaid in the first place.”

Collins received a mix of support from Republicans, including West Virginia Shelley Moore Capito, Louisiana’s Bill Cassidy, Utah’s John Curtis, Nebraska’s Fischer, South Carolina’s Lindsey Graham, Missouri’s Josh Hawley, Ohio’s Jon Husted and Bernie Moreno, Mississippi’s Cindy Hyde-Smith and Roger Wicker, Louisiana’s Kennedy, Kansans Roger Marshall and Moran, Kentucky’s Mitch McConnell, Alaskans Dan Sullivan and Murkowski and Indiana’s Todd Young.

Also voting to waive the point of order and move forward with the amendment were Georgia’s Jon Ossoff and Raphael Warnock and Virginia’s Warner, all Democrats, and independent Maine Sen. Angus King. 

Senate Minority Leader Chuck Schumer, D-N.Y., walks back onto the Senate floor after speaking to reporters at the U.S. Capitol Building on June 30, 2025 in Washington, D.C. (Photo by Andrew Harnik/Getty Images)

WASHINGTON — Senate Republicans were closing in Monday on passing their version of the “big beautiful” tax break and spending cut bill that President Donald Trump wants to make law by a self-imposed July Fourth deadline.

But the chamber’s Democrats first kicked off a marathon of amendment votes, forcing their GOP colleagues to go on the record on tough issues, including cuts to health and food safety net programs. As of early evening, Democrats had not prevailed on any votes.

The tactic is used by the opposition party during massive budget reconciliation fights to draw attention to specific issues even as their amendments are likely to fail.

Democrats decried numerous measures in the mega-bill, including new work reporting requirements for Medicaid, the federal-state health insurance program for low-income people and people with disabilities.

Loud opposition has also swelled as legislative proposals shift significant costs of the federal Supplemental Nutrition Assistance Program, or SNAP, to states for the first time.

“I say to our colleagues, ‘Vote for families over billionaires,’” Sen. Amy Klobuchar of Minnesota said on the Senate floor.

The heart of the nearly 1,000-page legislation extends and expands the 2017 tax law to keep individual income tax rates at the same level and makes permanent some tax breaks on business investments and research and development costs.

The bill would also put in motion some of Trump’s campaign promises, including no tax on qualifying tips, overtime or car loan interest, but only for a few years.

The tax cuts are estimated to cost nearly $4.5 trillion over 10 years, and a provision in the bill raises the nation’s borrowing limit to $5 trillion as the United States faces record levels of debt.

Overall, the Senate bill is projected to add $3.25 trillion to deficits during the next decade, according to the latest calculation from the nonpartisan Congressional Budget Office.

Here are some key votes so far:

Planned Parenthood 

Washington Democratic Sen. Patty Murray tried to remove language from the bill that would block Medicaid payments from going to Planned Parenthood for one year unless the organization stops performing abortions.

Federal law already bars funding from going toward abortions, with limited exceptions, but GOP lawmakers have proposed blocking any other funding from going to the organization, effectively blocking Medicaid patients from going to Planned Parenthood for other types of health care.

Murray said the proposal would have a detrimental impact on health care for lower-income women and called it a “long-sought goal of anti-choice extremists.”

“Republicans’ bill will cut millions of women off from birth control, cancer screenings, essential preventive health care — care that they will not be able to afford anywhere else,” Murray said. “And it will shutter some 200 health care clinics in our country.”

Mississippi Republican Sen. Cindy Hyde-Smith opposed efforts to remove the policy change and raised a budget point of order, which was not waived following a 49-51 vote. Maine Republican Sen. Susan Collins and Alaska’s Lisa Murkowski voted with Democrats.

“There was a time when protecting American tax dollars from supporting the abortion industry was an uncontroversial, nonpartisan effort that we could all get behind,” Hyde-Smith said.

Medicaid for undocumented immigrants

Senators from both political parties crossed the aisle over whether the federal government should reduce how much a state is given for its Medicaid program if that state uses its own taxpayer dollars to enroll immigrants living in the country without proper documentation.

The provision was included in an earlier version of the bill, but the Senate parliamentarian ruled it didn’t comply with the complex rules for moving a budget reconciliation bill.

The vote was 56-44, but since it was on waiving a budget point of order, at least 60 senators had to agree to set aside the rules and move forward with the amendment, so the vote failed.

Democratic Sens. Catherine Cortez Masto of Nevada, Maggie Hassan of New Hampshire, and Jon Ossoff and Raphael Warnock of Georgia voted with GOP senators. Maine’s Collins voted with most of the chamber’s Democrats against moving forward.

Texas Republican Sen. John Cornyn asked for the vote, saying he believes the policy change would reduce undocumented immigration.

“Border patrol talks about push and pull factors,” Cornyn said. “One of the pull factors for illegal immigration is the knowledge that people will be able to receive various benefits once they make it into the country.”

Senate Budget Committee ranking member Jeff Merkley, D-Ore., opposed Cornyn’s attempt to get the language back in the bill, saying the policy change would financially harm states that expanded Medicaid under the 2010 health care law for simple mistakes.

“What this amendment says is that if one person, despite state law, through a bureaucratic mistake, is receiving funds, then the whole state pays the price and has their rate on expanded Medicaid changed from 90% to 80%,” Merkley said, referring to the percentage paid by the federal government.

Reduction in funding for Consumer Financial Protection Bureau

An amendment to stop a nearly 50% reduction in funding for the Consumer Financial Protection Bureau was blocked by Republican Sen. Tim Scott of South Carolina, who chairs the Senate Committee on Banking, Housing and Urban Affairs.

Sen. Elizabeth Warren, a Democrat who championed the CFPB after the 2008 financial collapse, attempted to bring the amendment to the floor saying the agency “is the financial watchdog to keep people from getting cheated on credit cards and mortgages and Venmo and payday loans and a zillion other transactions.”

“When this financial cop can’t do its job there is no one else in the federal government to pick up the slack,” Warren said.

Scott blocked her using a budget point of order, saying the reduction still provides “ample funding” for the agency. Democrats tried to waive that procedural tactic, but failed following a 47-53 vote.

An original provision to completely zero out the budget for the CFPB was not included because it did not meet the reconciliation process’ parameters.

Medicaid hospitals and maternal mortality

Senators voted 48-52 to reject Delaware Democratic Sen. Lisa Blunt Rochester’s proposals to send the legislation back to committee to remove language cutting certain funding for Medicaid, which she said would negatively impact “vital hospital services, especially labor and delivery rooms.”

“Today, Medicaid is the single largest payer of maternity care in the United States, covering 40% of births nationwide and nearly half of the births in our rural communities,” Blunt Rochester said. “Obstetric units, particularly in rural hospitals, are closing at alarming rates, actually creating maternity deserts.”

No Republicans spoke in opposition to the proposal, though Maine’s Collins voted in support. 

Supplemental Nutrition Assistance Program

New Mexico Democratic Sen. Ben Ray Luján offered a motion to commit the bill back to committee in order to remove all changes related to the Supplemental Nutrition Assistance Program, or SNAP. It was rejected following a 49-51 vote, though Alaska Republican Sens. Dan Sullivan and Murkowski voted in favor.

“I’m offering my colleagues the opportunity to step away from these devastating cuts, to show our fellow Americans that in this country we care for our friends, family and neighbors who need support,” Luján said.

Senate Agriculture Chairman John Boozman, R-Ark., opposed the proposals, saying that SNAP is “on an unsustainable path wrought with mismanagement and waste.”

“This program has devolved into viewing success as enrolling more individuals to be dependent on government assistance,” Boozman said. “SNAP is long overdue for change.”

Medicaid work requirements

Senators voted 48-52 to reject a proposal from Delaware Democratic Sen. Chris Coons that would have sent the bill back to committee to remove language requiring Medicaid enrollees to work, participate in community service, or attend an educational program at least 80 hours a month. Alaska’s Murkowski was the only member of her party to vote in favor of the effort.

Democrats have expressed concern for weeks that some people would lose access to Medicaid if they forgot to complete paperwork proving that time commitment or didn’t understand how to show the government they met the new requirement.

“It is cruel and dishonest to bury patients, kids and seniors in paperwork and then blame them when they lose their health care, all to further rig our tax code for the very wealthiest,” Coons said.

Kansas Republican Sen. Roger Marshall urged opposition to the proposal, saying that working helps people.

“My question is, don’t you think a job brings value, that it brings dignity?” Marshall said. “Do you not think it brings purpose and meaning to life?”

Rural hospitals and Medicaid

Maine’s Collins and Alaska’s Murkowski both voted for a proposal from Massachusetts Democratic Sen. Ed Markey that would have removed parts of the bill changing Medicaid.

But even with some bipartisan support, the changes were rejected on a 49-51 vote that would have technically sent the bill back to committee for three days to implement the changes.

“My Republican colleagues’ so-called Medicaid cuts replacement fund is like giving aspirin to a cancer patient,” Markey said. “It is not enough. It is pathetically inadequate to deal with the health care crisis Republicans are creating here today on the Senate floor. No billionaire tax break or Donald Trump pat-on-the-back is worth the risk of people’s lives.”

Senate Finance Committee Chairman Mike Crapo, R-Idaho, spoke out against the proposal, saying that rural hospitals have long had financial challenges and that it was clearly “intended to derail this very bill.”

“Unfortunately for far too long some rural hospitals have struggled to achieve financial stability, even with a wide-range of targeted payment enhances,” Crapo said. “These issues pre-date the consideration of the reforms that we are including in the legislation today.” 

 

From left to right, Chase Christie, development director for Alaska Solar LLC, Josh Craft, managing partner of Wasilla, Alaska-based Crafty Energy LLC, and Josh Shipley, owner of Alternative Power Enterprises in Ridgeway, Colorado, at the Holiday Inn Express on C Street SW in Washington, D.C., on Wednesday, June 11, 2025, after meeting with staff of U.S. senators about preserving clean energy tax credits in the Republican budget reconciliation bill. (Ashley Murray/States Newsroom)

WASHINGTON — Small business owners and community leaders from rural regions in Western states including Alaska, Colorado, Iowa, Montana, Nebraska, South Dakota and Utah pressed lawmakers on Capitol Hill this week to preserve clean energy tax credits on the chopping block in the Republicans’ “one big beautiful” mega-bill, now in the Senate.

The suite of investment, production and residential tax credits enacted and expanded under the Democrats’ own big budget reconciliation bill in 2022, titled the “Inflation Reduction Act,” incentivized homeowners, car buyers, energy producers and manufacturers to invest in types of energy beyond fossil fuels, with the aim of reducing the effects of climate change.

The credits have spurred hundreds of billions in investment dollars in advanced manufacturing and production since 2022, and contributed to job creation, largely in states that elected President Donald Trump to a second term.

Small business operators and community leaders from rural and mountainous areas of the United States that have benefited from the boom in alternative energy sources say the campaign to end the tax credits will also cause job losses and cut options for consumers.

Solar projects in Alaska

Chase Christie, director of development for Alaska Solar LLC, said his company installs four to five large-scale solar projects per year in remote Alaskan villages and also fits and services smaller residential solar installations.

“They take a lot of planning, a lot of logistics,” Christie told States Newsroom in an interview Wednesday.

“For going into a remote village where there’s tundra, we might need to go there in the dead of winter so we can work on frozen ground,” he added. “Other places we won’t go until summer. So we have these large gaps in between these larger projects, and a company like ours absolutely relies on the residential installations to keep our workforce going.”

Christie, who met Tuesday with staffers for Alaska’s Republican Sens. Lisa Murkowski and Dan Sullivan, said in January he let a handful of workers go and paused most new hiring.

“Our workforce is roughly half of what it usually is just because we’re not sure which direction things are going to go,” he said.

Christie was among a dozen small energy business owners, municipal government officials and nonprofit employees focused on energy options for low-income households who States Newsroom spoke to Wednesday.

A spokesperson for Sullivan said in a statement: “Senator Sullivan supports energy projects that lower costs for Alaska. The Senator and his team have been meeting with a number of Alaskans about energy tax credits. As we wait for text from the Senate Finance Committee, the Senator is working with his colleagues to ensure that the bill strikes the right balance between promoting stable and predictable tax policy, advancing projects that benefit Alaska, and addressing the need to reduce the federal deficit.”

Murkowski’s office did not immediately respond to a request for comment.

Elimination of tax credits

Senators are hashing out language for the massive Republican agenda bill that will extend and expand the 2017 tax law, costing roughly $3.8 trillion, and cut spending in other areas to offset the price tag.

A contingent of House Republicans, who have dubbed the tax credits the “green new scam,” won on accelerating the expiration of the energy tax credits and tightening restrictions on eligibility as a way to pay for individual and corporate tax cuts that Trump campaigned on.

The language in a section of the House bill, passed 215-214 on May 22, titled “Working Families Over Elites,” terminates the Energy Efficient Home Improvement Tax Credit, worth up to $3,200 for homeowners who make energy upgrades to their property.

Among the slate of other affected IRA tax credits, the House bill also speeds up the expiration of the Clean Electricity Investment Tax Credit, a credit dating back decades that was updated in 2022.

The credit is available to taxpayers who invest in “energy property,” including solar installations to provide electricity and heat, fuel cells, small wind turbines, geothermal pumps, and other electricity-producing technologies. 

House Republicans wrote provisions to eliminate the credit for facilities placed into service after 2028 and end eligibility for projects that don’t begin construction within 60 days of the bill’s enactment.

The credit is worth up to 30% of the cost of the project, plus two bonus credits up to 10% each if the project includes mostly domestically produced material and if it’s located in an “energy community,” meaning a place where a coal plant has closed or where unemployment reaches a certain threshold.

The bill also repeals a taxpayer’s ability to transfer the tax credits as a way to finance a project, and introduces restrictions on foreign-made components that industry professionals say essentially makes the credit unworkable.

Critics point to the cost of the tax credits.

The nonpartisan Committee for a Responsible Federal Budget estimated, as of June 4, the elimination of the clean energy investment and production tax credits will save roughly $249 billion over the next decade.

Alex Muresianu, senior policy analyst at the Tax Foundation, a right-of-center think tank that advocates for lower taxes, said Thursday in a new analysis that “The final House bill makes impressive cuts to the IRA green energy tax credits, but it does so in part by introducing more complexity.”

The group is advocating for senators to reduce the tax credit rates and make clearer complicated language, like the provision around “foreign entities of concern.”

Keeping on the heat during a Montana winter

But Logan Smith, weatherization program manager for the Human Resource Development Council in central Montana, argues the credits have been a lifeline for lower-income rural residents.

“If I can get solar panels on each of the clients’ homes, that means that their power is going to stay on in the middle of winter,” Smith said. “Because every winter we plan for losing power for about a week, that’s just something we grew up with. … But if we have solar panels, the power stays on, the heat stays on.”

Ralph Waters, owner of SBS Solar in Missoula, Montana, became emotional when talking about how an early termination of the tax credits could slow his business and result in having to lay off half his workforce.

He criticized the politicization of the tax incentives.

“Montana is deeply red, but it’s also a very practical place. And so green energy renewables becomes a taboo phrase somehow,” Waters said. “The practical energy needs are undeniable, and so if we can get past our disagreements about the phraseology and realize that it’s electrons, watts, and amps. And it’s cheaper.”

The offices of Montana GOP Sens. Steve Daines and Tim Sheehy did not respond to a request for comment.