House Speaker Mike Johnson (R-LA) successfully negotiated with members of his party through the night Wednesday into early Thursday morning to clear a procedural hurdle in taking up the Senate-passed version of the budget reconciliation bill.
All but one Republican agreed to move forward with debate in a 3 am vote.
Ultimately, Rep. Brian Fitzpatrick (R-PA), one of three moderates representing a swing district that Vice President Kamala Harris won in 2024, was the only Republican to vote no along with all Democrats.
Following a landmark, hours-long speech by House Democratic Leader Hakeem Jeffries (D-NY), the House voted along party lines to pass the bill 217 to 214.
A presidential signing ceremony is expected to take place tomorrow, July 4.
Several Republican lawmakers who had earlier withheld their support for the bill indicated in press reports that there may be additional changes to provisions via promised Executive Orders or specifics of implementation which moved them to vote yes.
According to the nonpartisan Congressional Budget Office (CBO,) the bill would cut nearly $1 trillion from Medicaid and leave approximately 17 million fewer people insured at the end of the 10-year estimate—meaning, far steeper cuts and greater deficits than the original House version.
Within nonprofit tax provisions, included is a non-itemizer deduction for charitable contributions at $1000 for individuals and $2000 for joint filers. Excluded are two provisions which we advocated against: one putting nonprofit status in jeopardy if an organization was deemed to have ties to a “terrorist” group and a second levying UBIT on transportation and fringe-benefit related costs.
What's Next:
Our advocacy team will be reviewing the final language of the lengthy bill and will share further updates as needed next week.
Register to join us for the next webinar in our “Capitol Conversations” series on July 17 at 1 p.m. ET. We will be sharing updates on the final budget reconciliation bill and the impact on Medicaid and nonprofits, as well as expert insights on pursuing federal funding opportunities.
And perhaps most importantly, thank you for your work and efforts over the past several months. While this is not the result we had hoped for, we will continue to work together to navigate the challenges ahead.
For more information, please contact Sarah Dobson, Senior Director of Public Policy and Advocacy.
Lutheran Services in America is one of the nation’s largest national networks of health and human service providers with a mission to cultivate caring communities that advance health and opportunity for all. With 300 nonprofit organizations across 1,400 U.S. communities and more than $26 billion in combined annual services, the Lutheran Services in America network advances equitable outcomes for children, youth and families, improves independence and choice for older adults, champions meaningful services and support for people with intellectual and developmental disabilities, and strengthens stability and purpose for veterans and others. Formed in 1997, Lutheran Services in America brings together a network of leaders, partners and funders to catalyze innovation, strengthen organizational capacity and advance public policy.
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