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Welcome to The Hill’s Business & Economy newsletter

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Business & Economy

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The Big Story

How senators plan to change the Trump bill

Senate Republicans say they’re going to rewrite the 1,000-plus page package the House narrowly passed Thursday to enact President Trump’s agenda.

Here are some of the areas they are eyeing changes. 👇

State and local tax deductions: Speaker Johnson and House Republicans hailing from high-tax blue states held intense talks in recent weeks to nail down a deal on the state and local tax (SALT) deduction cap that helped the chamber clear the bill before Memorial Day.

Much to their chagrin, it’s possible that could all be for nought, as Senate Republicans are widely expected to throw their weight around over how to handle the SALT deduction cap.

Medicaid: Sens. Josh Hawley (R-Mo.), Susan Collins (R-Maine), Lisa Murkowski (R-Alaska) and Jerry Moran (R-Kan.) are threatening to oppose Medicaid reforms that would cut benefits, and they are taking a close look at limits in the bill on states’ ability to use health care provider taxes to collect more federal Medicaid funding.

Green energy incentives: Senate Republicans may want to loosen the tough stance the House bill takes on climate-friendly tax credits.

The Hill has more changes to watch for here.

Welcome to The Hill’s Business & Economy newsletter, I’m Aris Folley — covering the intersection of Wall Street and Pennsylvania Avenue.

Did someone forward you this newsletter? Subscribe here.

Essential Reads

Key business and economic news with implications this week and beyond:

Trump announces Nippon, US Steel partnership

President Trump announced Friday a partnership between U.S. Steel and Japanese corporation Nippon Steel, saying that jobs will be created in Pennsylvania as a result.

Full Story

Venezuelan workers at Disney put on leave from jobs after losing protective status

Almost four dozen Venezuelan workers who had temporary protected status have been put on leave by Disney after the U.S. Supreme Court allowed the Trump administration to strip them of legal protections.

Full Story

Lutnick: Current 10 percent tariffs not increasing prices

Commerce Secretary Howard Lutnick said the 10 percent tariffs imposed across the board are not increasing prices on consumers.

Full Story

Bessent: Trump tariff threat should ‘light fire’ under EU

Treasury Secretary Scott Bessent said Friday he hopes a new tariff threat from President Trump would speed along talks with the European Union regarding a new trade deal.

Full Story

Tax Watch

Senate GOP weighs SALT changes

Senate Republicans are staring down a collision course with the House as they weigh possible changes to the state and local tax (SALT) deduction cap as part of larger revisions to the party’s massive tax bill.

“There’s not one Republican in the United States Senate who gives a s‑‑‑ about SALT,” Sen. Kevin Cramer (R-N.D.) said. “Having said that, what does matter is 218 votes in the House, and we want to be cognizant about that.”

For much of the last month, the issue had been a vexing one for Speaker Mike Johnson (R-La.) and House Republicans as the group of nearly a half-dozen SALT members held the keys, intent on reversing what they viewed as a wrong implemented during the 2017 tax cut package.

“It comes down to costs. It’s probably going to get entangled [in the larger debate]. I hate the SALT policy,” Sen. Thom Tillis (R-N.C.) told reporters.

Tillis, a former Speaker of the House in Raleigh, noted, though, that he’s sympathetic to Johnson’s plight and recognizes the cap probably has to remain in the bill in some form as it is debated in coming weeks.

— Al Weaver has the latest here.

Tax Watch is a regular feature focused on the fight over tax reform and extending the 2017 Trump tax cuts this year. Email a tip

COMING UP

The Hill’s Evening Report breaks down the day’s big political stories and looks ahead to tomorrow. Click here to sign up & get it in your inbox

The Ticker

Upcoming news themes and events we’re watching:

Federal Reserve Chair Jerome Powell is set to deliver remarks at the Princeton University Baccalaureate Ceremony, Princeton, N.J., on Sunday at 2:40 pm E.T.

In Other News

Branch out with more stories from the day:

Trump signs executive orders to boost nuclear power, speed up approvals

WASHINGTON (AP) — President Donald Trump signed executive orders Friday intended to quadruple domestic …

Full Story

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Good to Know

Business and economic news we’ve flagged from other outlets:

Dow slides 200 points, S&P 500 tumbles for a fourth day after Trump threatens tariffs on EU, Apple (CNBC)
Apple has had few incentives in the past to start making iPhones in US (The Associated Press)
A record number of Americans applied for UK citizenship as Trump began his second term (CNN)

What Others are Reading

Top stories on The Hill right now:

Chief Justice Roberts temporarily halts discovery in DOGE case

Chief Justice John Roberts temporarily halted discovery Friday in a lawsuit seeking access to documents and information about the Department of Government Efficiency’s (DOGE) operations. Read more

Trump’s ‘big, beautiful bill’ faces a swarm of Senate GOP objections

The 1,116-page bill the House passed early Thursday morning to enact President Trump’s ambitious legislative agenda faces a swarm of objections from Senate Republicans. Read more