The Senate has made significant changes to the GOP spending bill passed by the House, which the White House has deemed as crucial to pass. With a tie-breaking vote by Vice President JD Vance, the Senate managed to pass the bill with just enough support. Although House leaders are displeased with the alterations, they may have to concede in order to meet the July 4 deadline set by President Donald Trump.
Among the modifications made by the Senate to the bill are the following:
– The removal of a provision that would have limited judges’ ability to enforce court orders, aiming to hold individuals accountable for violating such orders.
– The Senate’s version now allows mixed-status immigrant families to qualify for the child tax credit for their American citizen children, requiring at least one parent to have a Social Security number.
– Senate Republicans eliminated a section of the bill that would have prohibited states from implementing new regulations on artificial intelligence for the next decade.
– Senators also took out a provision that would have classified sports and fitness expenses as qualified medical care, enabling individuals to pay for them tax-free through a Health Savings Account.
The changes made by the Senate have stirred debate, with Democrats suggesting they limit the power of the courts, while Republicans argue they aim to prevent frivolous lawsuits. The alterations have also impacted issues related to child tax credits, AI regulation, and tax-free gym memberships.
The bill, still pending, in Washington, D.C., U.S. on July 2, 2025, included a benefit valued at $500 for an individual or $1,000 for a couple. This benefit could not be used at a private club owned by members or at facilities offering golf, hunting, sailing, or riding activities. Additionally, the health and fitness component of a business could not be considered merely incidental to its primary function.
Regarding Purple Heart benefits, Senators eliminated a proposed income tax credit for individuals who received the Purple Heart decoration for being wounded or killed in action. Furthermore, Purple Heart recipients who saw a reduction in their Social Security disability benefits due to employment could have potentially received a higher Earned Income Tax Credit to compensate for the lost benefits.
In terms of Pell grants, the Senate removed a proposed alteration to the Pell Grant program, which assists low-income students in attending colleges and universities. Currently, students are eligible for the maximum aid by taking 12 credits per semester. The House’s version of the bill aimed to increase this requirement to 15 credits per semester, potentially reducing benefits by nearly $1,500 for students unable to increase their course load due to work or caregiving responsibilities. The Senate opted to retain the 12-credit requirement.
For more information, visit the original article on USA TODAY: “How did the Senate modify the GOP tax and spending bill?”
