Senate Republicans are gearing up for a vote on President Donald Trump’s proposed legislation aimed at slashing over $160 billion in government spending annually. This meeting might lead to even deeper cuts before the final vote takes place.

Both Trump and Senate Republicans are advocating for significant reductions in spending, which would mark the largest cuts in U.S. history within the budget bill from the Senate. This proposal goes beyond the Republicans’ initial goal of trimming $1.5 trillion over the next ten years, surpassing expected savings from earlier drafts by more than $200 billion.

Senate Majority Leader John Thune is backing the president’s push for more cuts, particularly regarding immigration laws.

This drive to reduce deficit spending features support from Florida Senator Rick Scott, who wants to adjust the federal government’s contribution rates for new Medicaid enrollees in states that expanded coverage under the Affordable Care Act. Some senators concerned about the deficit, including Scott, have also advocated for potential revisions during a prolonged voting session, which is being referred to as “Voting Llamas,” leading into the final bill vote.

“I think this is a solid approach,” Thune noted, as he expressed optimism about the bill during a conversation with reporters. “We’re committed to aiding this initiative.”

Thune mentioned that there’s considerable interest in discussions shaping the final bill, though he’s unsure why some Republicans aren’t on board.

Nevertheless, Scott’s amendment could face hurdles due to some GOP Senators showing resistance to reducing federal support for the state’s Medicaid program, called the Federal Health Assistance Rate (FMAP). His proposal aims to exempt currently expanded groups, particularly those on Medicaid.

Trump extended his gratitude to Scott and the Finance Hawks for their backing of the bill’s opening debate. He indicated in a statement via social media that their focus is on “curbing unnecessary spending” and ensuring the Medicaid system effectively assists those in genuine need.

Much of the anticipated $1.6 trillion reduction in the Senate budget will stem from cuts to Medicaid and Medicare, primarily targeting efficiencies in Medicaid.

Thune described the Medicaid reforms in a recent speech as “common-sense measures” that would empower several healthy adults on Medicaid while also aiming to secure extra federal funds by regulating provider taxes in various states.

He stated that these reforms would be vital, especially since Medicaid spending had seen a significant rise—projected to increase by 60% between 2019 and 2025, reaching over $650 billion. Thune argued for maintaining this program to strengthen support for individuals in need rather than diverting focus to less vulnerable populations.

Thune has noted the plan would likely involve lowering the provider tax cap for states that have expanded Medicaid coverage. Many moderate senators, including North Carolina’s Tom Tillis, are worried about potentially losing billions in Medicaid funding.

Additional Medicaid reforms that might enhance savings are being considered for inclusion in the final budget bill, though Senator Elizabeth McDonough continues to assess aspects to ensure compliance with budgetary regulations.

While McDonough has generally approved most proposed changes, some Medicaid-related aspects raised concerns and may require adjustments to fit within the final package.

These adjustments could involve limiting federal contributions to states providing healthcare to undocumented immigrants or to states preventing these individuals from accessing Medicaid funds. It’s still unclear whether Republicans can move forward with plans to restrict Medicaid funding for abortion providers.

While Trump has expressed some criticism of McDonough’s role in shaping the bill’s final form, he hasn’t directly called for her removal, unlike some others in the Senate.

The Senate GOP has pushed back against the Democrats’ narrative that the President’s plan would severely undermine Medicaid through work requirements tied to various reforms. The proposal would mandate that healthy adults, including those with children over 14, work at least 20 hours a week, look for jobs, volunteer, or engage in educational activities.

Senate Majority Whip John Barrasso referenced a study suggesting that some Medicaid adults may not be using their time productively, arguing that they should take on work responsibilities.

“We’re outlining a responsible pathway to independence for healthy, working-age individuals,” Barrasso remarked, emphasizing the need to minimize reliance on taxpayer-funded services.

The Senate budget plan also aims to make drastic cuts to spending on green energy, such as speeding up the phasing out of solar tax credits, which could potentially save taxpayers hundreds of millions.

Trump will need to address the House of Representatives before the budget could officially become law. However, many moderate House Republicans are expressing apprehension about the proposed tough spending cuts, even as conservative members are calling for more stringent deficit reductions.

“Remember, you still have to be re-elected to manage all these drastic cuts,” Trump noted recently, cautioning against excessively severe approaches.