Congress
Capitol agenda: Rand Paul forces GOP into megabill runaround
Sen. Rand Paul is a frequent thorn in GOP leadership’s side. But his recent break over border security funding in President Donald Trump’s “big beautiful bill” has top Republicans pushing the bounds of institutional norms to rein him in.
Senior Republicans have sidelined the Kentucky Republican, who chairs the Senate Homeland Security and Governmental Affairs Committee, in their talks with the White House over policies under the panel’s purview.
Budget Chair Lindsey Graham (R-S.C.) told Blue Light News he has taken over as the lead negotiator around how to shepherd through tens of billions of dollars for border wall construction and related infrastructure in the GOP megabill. Meanwhile, a Senate Republican aide said Sen. James Lankford (R-Okla.) — who heads the relevant Homeland Security subcommittee — will be the point person for negotiating the bill’s government affairs provisions.
With every other committee chair helping manage negotiations for their panels’ portions of the massive tax and spending package, cutting Paul out is unprecedented. But Paul proposed funding border security at a fraction of what the administration requested and the House passed in its bill.
“Senator Paul usually votes ‘no’ and blames everybody else for not being pure enough,” Graham told Blue Light News. “As chairman, you … don’t have that luxury sometimes. You have to do things as chairman you wouldn’t have to do as a rank-and-file member.”
Indeed, few of Paul’s own committee members appear willing to defend him. Paul lost an ally in Sen. Ron Johnson (R-Wis.), a fellow deficit hawk, after top White House adviser Stephen Miller briefed senators on the administration’s border request and made a persuasive argument. Graham said the meeting was requested by him and Majority Leader John Thune to “contest” Paul’s offer. Paul did not attend.
Sen. Josh Hawley (R-Mo.) said Paul’s decision to draft his own proposal “without any consultation of the committee” was concerning, adding that he had “never seen that happen before.”
Nonetheless, Paul still believes some pieces of his own plan unrelated to border security will end up in the final bill, he told Blue Light News on Wednesday, and that he’s involved in ongoing talks with the Senate parliamentarian.
Speaking of the parliamentarian: Senate rule-keeper Elizabeth MacDonough is scrubbing the final draft of the megabill in a “big beautiful” Byrd bath. Her rulings on which provisions will fly under the filibuster-skirting budget reconciliation process are expected to roll in through the middle of next week, when Thune wants to schedule the first procedural vote related to the package.
Republicans are bracing for an answer to one consequential question they punted on earlier this year: whether they can use an accounting maneuver known as “current policy baseline” to make it appear that extending Trump’s 2017 tax cuts would cost nothing.
Senate Finance Republicans and Democrats will make a joint presentation to MacDonough this weekend about which provisions to keep or scrap. And there’s no shortage of GOP priorities under Byrd scrutiny — from tax cuts on certain gun silencers to a plan to raise taxes on foreign companies known as the “revenge tax.”
Other outstanding issues before the parliamentarian: whether Commerce has to tweak language to prohibit states from regulating AI over the next decade; whether Judiciary can block judges’ ability to issue preliminary injunctions; and whether Agriculture can use the megabill to pay for pieces of the stalled farm bill.
What else we’re watching:
— More megabill timeline hurdles: The Senate majority leader is ramping up efforts to quell rebellions within his conference over the megabill as he works to get it to the floor next week. That includes talking to Trump, who he frequently refers to as his “closer,” on a near-daily basis, Thune said. Meanwhile, Hawley is urging GOP leaders to strike Senate Finance’s language that would largely reduce the provider tax to 3.5 percent from 6 percent, warning that it won’t fly with House Republicans who voted to freeze, rather than reduce, the tax that many states use to fund their Medicaid programs.
— Iran classified briefing: Senate Minority Leader Chuck Schumer has privately confirmed there will be an all-senators classified briefing on Iran early next week, a Schumer aide said. It comes as Trump says he’ll decide within the next two weeks whether to strike the country amid its escalating confrontation with Israel.
— Trump pushes Senate’s crypto bill: Trump is urging House Republicans to send a “clean” version of the Senate-passed stablecoin regulatory framework to his desk “LIGHTNING FAST” — dialing up the pressure on congressional Republicans as they mull changes to the bill, including potentially packaging it with broader digital-assets market structure legislation.
Hailey Fuchs, Jordain Carney and Mia McCarthy contributed to this report.
Congress
Key GOP centrist Rep. Don Bacon will not seek reelection
Rep. Don Bacon will not seek reelection and plans to retire at the end of his term, according to two people familiar with his plans. The announcement is expected Monday.
Bacon is a key GOP centrist in the House and represents one of only three Republican-held districts that Kamala Harris won in the 2024 presidential election.
Congress
Rep. Dusty Johnson to announce a bid for South Dakota governor Monday
Rep. Dusty Johnson will announce a bid for South Dakota governor Monday, according to two people granted anonymity to speak about private conversations.
Johnson has served as South Dakota’s sole House representative since 2019. He’s been a key player in major deals on Capitol Hill in recent years as the head of the Main Street Caucus of Republicans.
Johnson, long expected to mount a bid for higher office, will make the announcement in Sioux Falls.
Johnson is the eighth House Republican to announce a run for higher office in 2026. Reps. Andy Biggs of Arizona, Byron Donalds of Florida, Randy Feenstra of Iowa, John James of Michigan and John Rose of Tennessee are also seeking governor’s offices; Reps. Andy Barr of Kentucky and Buddy Carter of Georgia have announced Senate runs.
Congress
Senate slated to take first vote on megabill Saturday
Senate Republicans are planning to take an initial vote at noon on Saturday to take up the megabill.
Leadership laid out the timeline during a closed-door lunch on Friday, Sen. John Kennedy (R-La.) and John Hoeven (R-N.D.) said after the lunch. A person granted anonymity to discuss internal scheduling confirmed the noon timeline but cautioned Republicans haven’t locked in the schedule yet.
During the lunch, Speaker Mike Johnson pitched Senate Republicans on the tentative SALT deal, according to three people in the room. He said the deal was as good as Republican can get, according to the people.
Johnson noted he still has “one holdout” — an apparent reference to New York Republican Nick LaLota, who said in a brief interview Friday that if there was a deal, he was not part of it.
Leaving the meeting, Johnson was asked by reporters whether he thought Senate Republicans would accept the SALT deal. “I believe they will,” he replied. “They’re going to digest the final calculations, but I think we’re very, very close to closing that issue.”
In the meeting, Treasury Secretary Scott Bessent and Johnson laid out details of the fragile agreement, telling Senate Republicans the House SALT deal would be cut in half, to total roughly $192 billion. They restated it would raise the SALT cap to $40,000 for five years under the current House-negotiated SALT deal, and snap back to the current $10,000 cap after that.
In related matters, Kennedy and Hoeven also said the Senate will keep its provider tax proposal but delay its implementation, which Republicans believe will help it comply with budget rules. and Johnson also told Senate Republicans that he wants to do another reconciliation bill — which senators took to mean they would get another opportunity to secure spending cuts or provisions passed that have been squeezed out of the megabill.
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