Capitol News

U.S. Rep. Tom Barrett (R-Lansing) will vote on a federal budget bill that would block 2026 income tax increases on individuals and small businesses, and that seeks to reform and shore up funding of Medicaid.

The U.S. House vote could be held as early as Thursday.

Supported by President Donald Trump, who has dubbed it the "Big, Beautiful Bill," it would prevent Trump-era tax cuts from expiring, end taxes on tips and overtime, and car loan interest and increase tax deductions for seniors.

It also seeks to protect funding for the Medicaid program, which funds health care for lower-income Americans. It is funded by the federal government and administered by the states.

Barrett has indicated support for President Trump's agenda in Congress.

"In President Trump’s first 100 days, we’ve teamed up to secure the border, bring manufacturing jobs back, and unleash American energy," he tweeted last month. "America First is back and we’re just getting started."

U.S. House Speaker Mike Johnson (R-LA) said his priority is "strengthening and protecting Medicaid for the people who need and deserve it.” 

He said the increased funding for Medicaid over 2025 levels will especially be aimed at "pregnant women, single mothers, low-income seniors, and the disabled—that's who Medicaid is intended to help."

Tax hikes averted, Medicaid spending rises more slowly

If the bill doesn't pass, individuals earning between $15,000 and $30,000 will see a $263 per year annual tax increase, according to the Congressional Joint Tax Committee. 

Individuals making up to $100,000 would see a $1,300 per year tax hike, if the budget bill fails to pass.

The bill will increase standard deductions and child tax credits for families. It largely excludes high-earners from tax relief.

During a speech late last month in Macomb, Michigan, Trump said that his party “will defend Medicaid for those great people that are in need.” 

“House Republicans are working to invest more money in Medicaid than we spend today," he said.

According to a Foundation for Government Accountability analysis, even accounting for elimination of fraud, Medicaid spending will increase by 25 percent over the next decade, to $815 billion per year in 2034 from $656 billion this year. 

Barrett was elected to the U.S. House in 2024, defeating Democrat Curtis Hertel in a race to fill a seat left open when Democratic U.S. Rep. Elissa Slotkin of Holly decided to run for the state's open U.S. Senate seat. 

Barrett previously served in the Michigan State Senate from 2019-23.

Michigan’s 7th Congressional District includes all of Ingham, Clinton, Shiawassee, and Livingston Counties, most of Eaton County, and parts of Oakland and Genesee Counties.