06/27/2025

Senate Leaders Weigh Changes to Reconciliation Bill

The "Big, Beautiful Bill" is losing its luster with some lawmakers

The Senate continues to work toward finalizing its version of legislation to extend provisions of the 2017 Tax Cuts and Jobs Act and advance several of President Donald Trump's domestic policy priorities.

As negotiations intensif, Senate Republicans are reportedly considering delaying a controversial Medicaid cut to secure support from moderate GOP holdouts.

The current proposal would impose stricter provider tax limits on Medicaid expansion states beginning in early 2027 — just after the 2026 elections — but leadership is weighing a later implementation timeline to ease political pressure and meet their goal of passing the bill by July 4.

Senate Majority Leader John Thune (R-SD) has said that the Senate will stay in Washington until the reconciliation bill is passed.

The American Society of Association Executives' (ASAE) advocacy is making a meaningful impact as the bill takes shape. Thanks to efforts by ASAE's Community Impact Coalition, of which the Ohio Society of Association Professionals (OSAP) is a steering committee member, the Senate removed a provision that would have taxed nonprofit organizations on parking and transportation fringe benefits — preserving critical resources that can now be directed toward mission-driven work.

The bill also incorporates the Freedom to Invest in Tomorrow’s Workforce Act, long championed by ASAE’s Tomorrow’s Workforce Coalition, which OSAP also supports. This measure would expand 529 plan eligibility to include licenses and nongovernmental credentials offered by associations, giving more Americans flexible, affordable pathways to career success beyond the traditional college route.

ASAE and the CIC both delivered letters to the House and Senate tax-writing committees this week applauding the Senate Finance Committee for removing the fringe benefits tax provision and including the 529 expansion language in its bill text. ASAE and its coalitions remain actively engaged as the legislative process moves forward.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.