WSJ Opinion: Potomac Watch Will the 'One Big, Beautiful Bill' Cost Republicans in 2026?
Jul 3, 2025
The discussion dives into the massive budget reconciliation bill passed by Republicans, highlighting only minimal dissent. The complexities of Medicaid reform and its implications for state spending are dissected. New tax policies raise questions about their alignment with pro-growth principles. Tariffs on American automobiles are analyzed, revealing potential effects on competition. Lastly, the political consequences of this bill are examined, particularly how public perception might sway the upcoming 2026 elections.
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Republicans Pass Major Bill
- House Republicans passed a massive tax and budget bill after a tense all-night session with only two Republicans opposing it.
- The bill is now awaiting President Trump's signature, marking a major legislative win for his agenda.
High-Level GOP Fiscal Accomplishment
- The bill extends 2017 tax cuts permanently and modestly reforms food stamps and military spending.
- Despite some negative provisions, it's a high-level accomplishment for Republicans in fiscal policy.
Medicaid Provider Tax Crackdown
- Republicans targeted Medicaid waste by restricting the provider tax exemptions in Obamacare expansion states.
- The goal is to slow federal spending growth by about $300 billion over ten years while hospitals benefit.