With the Republicans’ “big beautiful” tax and expenditure reduction bill now approved by the U.S. House, Senator Jack Reed is advocating for Rhode Island Democrats in the Senate to oppose it.

“It’s really just a huge chaotic situation,” Reed stated to journalists at his office on Friday, May 23. “This is financially reckless and betrays the trust of diligent American tax contributors. The GOP legislation essentially robs the poor to enrich the wealthy.”

The legislation, dubbed by President Donald Trump, aims to prolong the tax reductions enacted during his initial term and finance these through reductions in Medicaid and the Supplemental Nutrition Assistance Program, which was previously referred to as Food Stamps.

It also cuts incentives for renewable energy development and eliminates taxes on tips and overtime.

The two Democrats from Rhode Island who serve in the House of Representatives both opposed the bill, which was approved by the House late at night on May 22.

The timing of the Senate voting on the bill and potential amendments from senators remain uncertain, leaving the precise effects on Rhode Island residents and the state government unclear.

Reed referred to projections from the left-leaning Center for American Progress think tank, suggesting that approximately 40,000 Rhode Islanders could lose their health insurance coverage by 2034 due to reductions in Medicaid funding. Currently, more than 300,000 Rhode Islanders are part of the Medicaid program.

With fewer Rhode Islanders covered for routine and preventative care, Reed said an increase in emergency care could hike medical costs and insurance premiums.

These assumptions are based on the premise that the state will not use its own resources to compensate for the federal funding shortfall in Medicaid.

Is Reed of the opinion that there’s any possibility the bill will be halted or altered in the Senate?

“There will be alterations, however, I believe these changes will mostly appear significant rather than being truly impactful since my fellow Republicans have… remained tight-lipped and pushed through various extreme policies,” Reed stated.

Reed, who is set for reelection in 2026, highlighted the votes that the Senate Republican Party has already cast to bypass parliamentary procedures regarding what can be approved with just a simple majority.

Would Democrats have been justified in ignoring the same rules when they were in charge of the Senate?

The sole true rule in the Senate, I believe, is ‘what goes around comes around,’ ” Reed stated. “Had we ignored the parliamentarian, they would have inevitably implemented it immediately once they gained control.

However, they proceeded despite that.

He stated, ‘They did, however, act irresponsibly.’ We have made efforts to uphold a structured procedure allowing each senator to engage thoroughly.

The SALT debate

The Great Gorgeous Bill raises the cap forstate and local tax deductions individuals can claim on their federal taxes from $10,000 to $40,000.

Even though it mainly advantages wealthier taxpayers, Rhode Island’s Democratic members of Congress have historically backed it.

Is Reed backing that portion of the Republican tax legislation?

You could create a more equitable tax bill, such as one that includes the SALT deduction,” Reed stated. “This new version wouldn’t heavily favor the extremely rich via corporate structures and similar means. At the same time, it would increase taxation on individuals earning above $400,000 annually, while also offering advantages like the SALT deduction to middle-class workers.

Is Reed in favor of removing taxes on tips?

“Until you reach a particular income threshold,” he stated. “The system operates such that an executive from a major company can categorize their reimbursements as tips, since these payments aren’t subject to taxation.”

The article initially appeared in The Providence Journal.

Reed: Trump’s ‘big beautiful bill’ turns out to be ‘a big ugly mess.’