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Senate rejects Susan Collins amendment to boost rural hospitals, raise taxes on wealthy

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The Senate rejected a bid by Sen. Susan Collins (R-Maine) to raise taxes on the ultra-wealthy and boost money for rural medical providers in the GOP’s megabill.

The chamber voted 78-22 against a procedural motion related to her amendment, which would have increased a rural hospital fund from $25 billion over five years to $50 billion and allowed a wider range of health providers to tap it. The amendment also would have raised the top tax rates for individuals who earn more than $25 million a year and couples earning more than $50 million starting next year.

It remains unclear whether the failure of the amendment could cost GOP leaders Collins’ vote. She had been concerned about the impact on rural hospitals from the bill, and even questioned if any amount in a rural hospital fund would help offset the losses.

“Rural providers, especially our rural hospitals and nursing homes, are under great financial strain right now, with many having recently closed and others being at risk of closing,” Collins said before the vote. “This amendment would help keep them open and caring for those who live in rural communities.”

Most Democrats joined the majority of Republicans in opposing consideration of the amendment. Sen. Ron Wyden (D-Ore.) called it a “Band-Aid on an amputation” that would barely offset the other health care cuts in the bill: “It would be much more logical to simply not cut $1 trillion from Medicaid in the first place,” he said. Georgia Sens. Jon Ossoff and Raphael Warnock and Virginia Sen. Mark Warner were the only Democrats to vote with Collins, along with independent Sen. Angus King of Maine.

Several GOP senators have aired concerns that the bill’s cuts to Medicaid in the bill would force rural hospitals to close. The bill lowers the amount a state can tax a hospital and then use the funding to qualify for more federal Medicaid dollars without having to dip into their own general funds. Hospitals don’t mind the tax because they can get higher payments from their state.

Conservatives have claimed these provider taxes amount to a “money laundering” scheme that enables states to use the extra federal dollars for other things. But the hospital industry has fought this claim, arguing that the provider taxes are needed to help rural hospitals that operate on thin margins.

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Congress

Senate votes to halt Iran war despite Trump’s push for peace deal

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The Senate on Tuesday voted to cut off the U.S. military campaign against Iran, handing a fresh loss to President Donald Trump despite his attempts to convince lawmakers and the public that a deal to end the war is at hand.

Four Republicans broke ranks to help approve a resolution to block further military action unless it is green-lighted by Congress.

The war powers measure is largely symbolic — the resolution cleared Tuesday doesn’t go to the president to sign or veto. But the bipartisan 50-48 vote is a damaging milestone for the Trump administration: Both the Senate and House have now weighed in against the Middle East conflict that’s stretched on for more than 100 days. The same measure passed the House in early June after months of close calls.

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Housing bill threatened in GOP elections-bill spat

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The long-anticipated bipartisan housing bill is under threat from a Florida Republican who threatened to “shut the floor down” if House GOP leaders move forward with passing it Tuesday.

Rep. Anna Paulina Luna said Republicans instead need to prioritize passage of the SAVE America Act, the GOP elections bill that has been stuck in the Senate for months. Speaker Mike Johnson has scheduled a Tuesday evening vote on the housing bill in hopes of sending it to President Donald Trump for a planned Wednesday signing at the White House.

Luna posted her threat on social media Tuesday afternoon and later specified in an interview that she would oppose procedural measures teeing up GOP-backed legislation going forward if party leaders didn’t abandon their plans to hold the housing bill vote via special fast-track procedures that would effectively sideline Republican hard-liners.

Luna cannot single-handedly block those procedural votes, but she said there is “a group” of lawmakers who would join her. She separately called on Trump to veto the housing bill in a bid to force the SAVE America Act to be added to it.

Johnson plans for now to proceed with the Tuesday evening vote on the housing bill, according to two people granted anonymity to discuss internal conversations. If Luna and her unnamed allies follow through with their threats, they could derail a pair of appropriations bills set for House consideration this week and potentially freeze the floor indefinitely given the GOP’s razor-thin majority.

“I have been telling them,” Luna said of her complaints to GOP leaders.

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Top tech executives expected to testify at July 28 Senate hearing

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The Senate Judiciary Committee is tentatively planning to have top tech executives testify at a July 28 hearing, according to five people with knowledge of the committee’s plans granted anonymity to discuss private negotiations.

Judiciary Committee Chair Chuck Grassley (R-Iowa) had previously summoned the CEOs of Meta, TikTok, Snapchat and Google to a hearing, originally scheduled for Tuesday, to discuss their online child safety practices, AI safety and other topics.

“Chairman Grassley looks forward to a productive hearing as he continues his bipartisan efforts to get lifesaving child safety legislation signed into law,” a spokesperson for Grassley told Blue Light News.

The hearing, which remains provisional, comes at a pivotal moment for the tech sector. Congress is actively debating legislation aimed at protecting children online, while courts and state attorneys general are intensifying pressure on social media companies over allegations that their platforms harm young users.

The list of tech executives the committee is eyeing to testify remains in flux but currently includes head of Instagram Adam Mosseri and YouTube CEO Neal Mohan, according to the five people. Three of the people said Snapchat CEO Evan Spiegel and CEO of TikTok’s U.S.-based joint venture company Adam Presser may also be called to attend.

The four companies did not immediately comment on the proposed hearing.

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