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Capitol agenda: The megabill has mega issues

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Republicans’ drive toward the “big, beautiful” bill is starting to hit some big potholes.

As lawmakers get into gear on extending President Donald Trump’s tax cuts, cracks are deepening on critical issues, including Medicaid, food aid and even lower-profile issues like transportation funding. Lawmakers are also getting impatient for more details about the plans from leaders, including on lifting caps on deductions for state and local taxes.

“We’re in the seventh or eighth inning of this game. At some point in time, leadership and/or the committee need to reveal part of their hand,” Rep. Nick LaLota told reporters, adding he expects a number on how much leaders are planning to lift the SALT cap from a meeting Wednesday. “[It’s been] mostly pleasant the last few months, mostly because we haven’t been specific.”

Here are the key headaches they have to solve:

MEDICAID — House Speaker Mike Johnson has a deepening challenge on his hands: How to deal with the safety-net health program millions of Republican voters rely on. Couple that with blue-state Republicans’ push to boost the SALT cap, and he’s got a big math problem that could delay the GOP’s bid to extend Trump’s tax cuts.

Key vulnerable House Republicans like David Valadao and Don Bacon are raising red flags about the extent of potential spending cuts, as POLITICO reported Tuesday afternoon.

LaLota told reporters Tuesday he wants to hear more from Energy and Commerce Chair Brett Guthrie about how capping federal spending in states that have expanded Medicaid would impact recipients.

“My sense is that would be a cut, and I’m not in favor of that,” LaLota said. Guthrie is huddling with concerned members Wednesday.

SNAP — The White House won’t support a proposal to push some nutrition program costs onto states, House Agriculture Chair G.T. Thompson said Tuesday. That throws a wrench in his plans to scale back federal funding for the Supplemental Nutrition Assistance Program in order to reach their target of $230 billion in spending cuts.

Now he’s waiting to see if Republican leadership lowers the savings target. “If it’s $230 billion, I don’t think that’s an appropriate number” absent the cost-sharing arrangement, he said.

VEHICLE FEES — Johnson and other Republicans are also hesitant about a proposal to create a $20 annual fee on passenger cars in the Transportation and Infrastructure portion of the package. (It would be even higher for hybrids and electric vehicles.) The speaker said it wasn’t his “priority.” Fiscal hawk Rep. Chip Roy was more direct in his opposition, calling it a “gimmick.”

“Are you out of your fricking mind? Like, the party of limited government is gonna go out and say we’re gonna have a car tax?” Roy vented to reporters Monday.

FEDERAL PENSIONS — On Oversight, Rep. Mike Turner said he would oppose the committee’s proposal to slash federal employee retirement benefits as a way of offsetting the cost of the larger legislation. The panel is tasked with finding $50 billion in savings, much of which is expected to come from changes borne by the federal workforce.

“These pensions are not giveaways — they are promises to federal workers in exchange for their dedicated service,” Turner said in a statement.

CARRIED INTEREST — House Republicans might be souring on Trump’s proposal to kill a tax break favored by Wall Street. Ways and Means has privately indicated it’s not leaning toward closing so-called carried interest loophole in the package, according to one House Republican and another person familiar with the private conversations. One House Republican said they are “talking about it” but indicated it’s unlikely to survive.

What else we’re watching:

– Judiciary markup: House Judiciary will mark up its portion of GOP megabill Wednesday, which includes more than just the expected immigration provisions. The bill hands Trump a new swath of executive powers: It would consolidate the federal government’s antitrust enforcement powers at the Justice Department and supercharge the GOP’s deregulatory agenda. House Oversight, Financial Services and Transportation and Infrastructure will also mark up their portions of the GOP party-line bill Wednesday.

– Tariff talk: Senate Majority Leader John Thune is cracking down on members of his conference still squeamish over Trump’s trade strategy as Democrats and GOP Sen. Rand Paul push a vote Wednesday to reject the president’s use of emergency powers to impose blanket global tariffs. After four Republicans joined Democrats in rejecting the emergency Trump was using to justify his tariffs on Canadian imports, Thune warned GOP senators in a private lunch Tuesday with U.S. Trade Representative Jamieson Greer not to cross party lines again.

– Dems 100 days in: Democratic leaders Chuck Schumer and Hakeem Jeffries will continue hammering the second Trump administration’s first 100 days in a joint appearance on the Capitol steps Wednesday afternoon. But even as Democrats cast Trump as their unifying force, fissures remain in their resistance strategy.

Benjamin Guggenheim, Meredith Lee Hill and Grace Yarrow contributed to this report.

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Congress

Senate’s summer pileup is threatening a quick recess escape

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Ideally, the Senate would be adjourning for a five-week break in less than 24 hours.

Instead, Republican senators are still navigating what Majority Leader John Thune described as a “train wreck” as they face a pileup of legislation, key nominations and public pressure from President Donald Trump and angry conservatives to show progress on a GOP election bill Trump views as his “No. 1 priority.”

They’re heading into Thursday — when the scent of jet fumes typically starts wafting through the halls of Congress — without a deal that would let them speed up votes on a government funding bill or long-stalled Russia sanctions bill.

Meanwhile, Todd Blanche’s attorney general nomination is still stuck in limbo after he came to the Capitol Wednesday for a roughly hourlong meeting with two key Republican holdouts.

That said, the general outlines of a deal that would allow senators to quickly get out of Washington and onto the campaign trail has started taking shape, even as senators and aides acknowledged they might have to stick around at least a little bit longer than they’d hoped.

“Don’t kill the vibe — it’s starting to pick up,” Thune said in an interview, while cautioning that “you’re not going to be smelling those [jet fumes] anytime real soon. … We’ve obviously got, like I said, a stack of stuff to do.”

One key issue Republicans haven’t yet settled is a new party-line spending bill that would pump billions of dollars into the Pentagon, to ailing farmers and into some elections-related spending that could take some of the Trump-fueled pressure off — even as several people with knowledge of the discussions said the votes aren’t there.

Thune hasn’t formally ruled out taking up a budget blueprint for the GOP bill, saying Wednesday it was “hard to say at this point” if he had the votes. But he indicated there was progress behind the scenes toward an exit strategy that would allow Republicans to start their recess with minimal internal friction.

“There’s not clarity, but it’s getting less cloudy if you put it that way,” Thune said.

Three people granted anonymity to discuss internal discussions said that endgame would not involve the time-consuming process of advancing a budget, but instead calling up a vote related to the SAVE America Act, the Trump-backed elections bill.

Republican leaders are hoping that holding a vote on the elections proposal, at the Senate’s usual 60-vote threshold for legislation, will let them hammer Democrats as the holdup while satisfying Republicans who have been frustrated over the lack of progress and have threatened to oppose leaving town.

“We’re looking at options there,” Thune said about possible SAVE America-related votes.

He added that it “remains to be seen” if that would be enough to placate Trump-allied rabble-rousers, “but we’ve had a number of conversations now about how we get the votes people feel are necessary.”

A key MAGA ally, Sen. Mike Lee of Utah, posted a social media video Wednesday thanking Thune, saying that the conversation has moved in a “favorable direction” and that Republicans were discussing “what procedural vehicle to use in order to get this thing done.”

Thune has several other obstacles to clear besides the SAVE America fight.

Senators want an agreement that would let them extend government funding into mid-December, pass a sanctions bill targeting Russia in honor of the late Sen. Lindsey Graham, confirm dozens of Trump nominees, including Blanche, and start work on a bipartisan college sports bill.

The highest drama surrounds Blanche, who met Wednesday with GOP Sens. Bill Cassidy of Louisiana and Lisa Murkowski of Alaska. Neither said afterward how they would vote on his nomination. With Sen. Susan Collins (R-Maine) and every Democrat expected to oppose Blanche, and Sen. Mitch McConnell (R-Ky.) out for health reasons, he will need to win support from at least one of the two.

The legislative targets have issues, too: Republicans are grappling with intraparty wrangling over hemp language included in the stopgap bill, and Democrats are working through concerns in their ranks about the sanctions bill.

They also want to know if Republicans are going to force them to take a vote on cryptocurrency legislation that many Democrats currently oppose. They are eager to avoid taking that vote ahead of the recess as bipartisan talks happen behind the scenes — especially because a failed vote could potentially fuel tens of millions of dollars of campaign spending against Democratic opponents by industry allies.

Democrats are also looking for signals from Republicans about whether they will move forward with the party-line budget plan. But it was clear by Wednesday afternoon that major obstacles remained.

One GOP senator said Wednesday evening that “there won’t be the votes to do reconciliation and that will simplify things” for the rest of the schedule.

At a Senate GOP lunch meeting, Budget Chair Ron Johnson of Wisconsin presented his ideas for the budget blueprint. It would closely mirror a version that the House advanced last month, but it would also instruct a host of new committees to help draft the bill — expanding the range of issues Democrats could force vulnerable GOP incumbents to take tough votes on just months before the midterms.

Besides ongoing intra-GOP disputes about the amount of Pentagon funding to include and whether to offset the spending with cuts elsewhere, Thune is dealing with senators who aren’t convinced that they should force the issue just months before voters cast ballots.

Retiring Sen. Thom Tillis (R-N.C.), who described himself as a “lean no” on the budget, said his views were being influenced by wanting to protect vulnerable colleagues.

“There’s only like five members of my conference that I care about. and they’re the ones who are running in at-risk states,” he said.

Asked if he would vote “no” to protect them, Tillis added, “I’m going to support my members who are up for election. They’re the most important priority right now.”

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Trump urges GOP senators to back off hemp ban

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President Donald Trump and top White House officials are privately lobbying Republican senators to delay a ban on intoxicating hemp that’s set to kick in this fall.

At the Trump administration’s urging, the government funding patch the Senate is working to pass this week would push off the forthcoming ban of some cannabis products derived from hemp. But several Republican senators are demanding a vote to strip the delay out and let that prohibition kick in come November.

They’re hearing from the White House about it.

Trump called Sen. Ted Budd on Tuesday night, after the North Carolina Republican filed an amendment to ensure the ban kicks in as mandated on Nov. 12, according to a Senate aide granted anonymity to describe the private discussion. On the call, the president discussed creating a federal regulatory framework for hemp but did not ask Budd to withdraw his amendment, the individual added.

“I’ve been asked by lots of people to stand down on this amendment,” Budd told reporters Wednesday.

Budd noted that the Trump administration has had almost nine months to come up with a plan for implementing the ban.

“So why all of a sudden pop up for some seemingly innocent delay?” he asked, accusing the White House of instead preparing to “jam this on some must-pass” funding package at year’s end to further delay the prohibition.

A White House official granted anonymity to discuss the private debate said the Trump administration is seeking “a modest four-week delay” through the Dec. 11 expiration of the funding patch “to allow for productive conversations to continue.” Some synthetic cannabis products would be permanently banned in the meantime, the official added.

The administration lobbying has successfully swayed some Senate Republicans, such as Sen. Rick Scott (R-Fla.), who said in an interview that “the White House has committed to me that they’re committed to regulate the industry.”

Republican Sen. Rand Paul of hemp-rich Kentucky said the issue came up “in a big way” during Senate Republicans’ private lunch meeting Wednesday. Paul said he spoke in support of delaying the ban and said those arguing for a delay “aren’t very rational.”

“They’re wanting to hold up the funding for the government over one month,” he said. “It’s kind of insane.”

Grace Yarrow contributed to this report.

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Holdouts meet with Blanche

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Acting Attorney General Todd Blanche is in the Capitol meeting with holdout GOP Sens. Lisa Murkowski of Alaska and Bill Cassidy of Louisiania as he tries to lock down their support for his confirmation as permanent leader of the Justice Department.

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