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Lots of talk, little outward progress as House GOP closes in on megabill

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Speaker Mike Johnson is racing to resolve a suite of remaining issues with the GOP megabill just days before he hopes to put it up for a floor vote.

Warring factions inside the House Republican Conference huddled with the speaker Thursday, jockeying primarily over what to do about SALT — the state-and-local-tax deduction.

But other disagreements are also raging around major spending cuts for Medicaid, clean energy tax credits enacted under former President Joe Biden and a slew of other issues that are part of a complex funding puzzle.

Inside the meeting, lawmakers discussed how to make more room for SALT, with some lawmakers still favoring a tax hike on the wealthiest Americans to make all the math work, according to two Republicans granted anonymity to describe the private talks. GOP leaders have pushed back against such a move. SALT Republicans, including a die-hard group of five New Yorkers, reiterated in the meeting that they would not accept the $30,000 cap currently in the megabill draft.

The speaker also brought Rep. Nicole Malliotakis (R-N.Y.) into the conversation via speakerphone, according to the people, after SALT members asked her to leave a recent meeting amid concerns she was more sympathetic to her Republican colleagues on the Ways and Means Committee than her fellow New York lawmakers.

Another Republican involved in the talks, granted anonymity to speak candidly, said they were optimistic that the speaker would “pull a rabbit out of a hat again.” Negotiators in the room were working to find “a sweet spot” on SALT and things were moving in a positive direction, the Republican said.

Lawmakers submitted a host of requests for estimates of how certain changes would fit together, and they are now waiting to get the data before making bigger alterations. Many “more details” are needed to figure out the funding puzzle around SALT, according to another person with direct knowledge of the talks.

Johnson, leaving the meeting at one point, told reporters he was committed to working through a slew of major issues potentially impeding passage of the party-line package central to enacting President Donald Trump’s domestic agenda.

“I’ve committed to working through the weekend on it,” Johnson told reporters. He added they would get to “a point” where it can go on the floor.

He was optimistic that the bill could still pass the chamber by his Memorial Day target, but significant hurdles remain.

Hard-liners are pushing for deeper Medicaid cuts — including moving up the start date of the new federal work requirements embedded in the bill, which currently wouldn’t go into effect until 2029. Moderates are wary of making deeper cuts to Medicaid and are expecting to meet with GOP leaders later Thursday.

“For me, the numbers matter. I don’t want to, you know, get further into debt, and the deficit is important to me,” Rep. Beth Van Duyne (R-Texas) said. “The numbers don’t add up.”

Rep. Byron Donalds (R-Fla.) said lawmakers need to factor in Medicaid work requirements and how to ensure states that have not yet expanded Medicaid under the Affordable Care Act aren’t incentivized to expand.

One key hard-right negotiator, Rep. Chip Roy (R-Texas), left the meeting early after again panning the current bill in a morning TV appearance.

GOP leaders want to advance the megabill next week, sending it first to the Budget Committee Friday, then to the Rules Committee and — they hope — on to the floor.

“It’s going to come up in Rules on Monday, and we’ll be voting on it next week,” said House Majority Whip Tom Emmer (R-Minn.), leaving the closed-door meeting Thursday.

Hailey Fuchs, Benjamin Guggenheim and Nicholas Wu contributed to this report.

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Congress

Senate confirms Blanche as attorney general

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The Senate Saturday confirmed Todd Blanche to be attorney general, following a weeks-long struggle with a handful of wary Republicans.

The Senate voted 50-49 to approve him, with GOP Sens. Susan Collins of Maine and Lisa Murkowski of Alaska joining with Democrats in opposition.

Blanche, President Donald Trump’s former personal attorney, has been serving as acting attorney general since Pam Bondi’s ouster in April. Questions about Blanche’s potential conflicts of interest from representing Trump, as well as his role in the creation of a $1.8 billion “Anti-Weaponization Fund” as part of Trump’s settlement this spring with the IRS, created headwinds to his confirmation among a key group of Senate Republicans.

Sen. Bill Cassidy, the Louisiana Republican who lost re-election after Trump endorsed a primary challenger, helped Blanche clinch his 50th vote Friday. He said Blanche wasn’t perfect but that he wasn’t sure Trump would pick someone better to lead the Justice Department.

“The choice is not between perfection and Mr. Blanche,” Cassidy said on the Senate floor. “It is between Mr. Blanche and another acting attorney general who may not run the department effectively under President Trump and who indeed may not be as good as Mr. Blanche.”

Cassidy’s support came after Blanche had already spent weeks negotiating with Sens. Thom Tillis of North Carolina and John Cornyn of Texas, who vetted his nomination as members of the Senate Judiciary Committee. Cornyn struck an agreement with Blanche Sunday for the DOJ to curtail the payout fund and rein in a deal to exempt Trump from IRS audits.

Cassidy’s support came hours after Murkowski announced that she would oppose Blanche’s nomination, putting it on the brink of potential failure. Between unified opposition from Democrats and Sen. Mitch McConnell’s absence for health reasons, Blanche could only lose two Republicans and still be confirmed.

Hours before Friday’s vote, Murkowski told reporters she spoke with Blanche multiple times but that she was “good with where I am.” She said there was no “one” thing that motivated her decision.

“If there was one thing, we might be able to go back to the White House and say ‘Hey, can we work on this one thing,’” she said. “But for me it was a compilation.”

She added that she believed the anti-weaponization fund is “pretty dead” but “what is not so clear” are the audit immunity provisions of Trump’s IRS agreement, “which I just think are viewed by so many in this country as kind of a special and sweet deal for the president and his family.”

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Senate passes funding bill to avert October shutdown

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The Senate passed a bill Saturday to fund the government beyond the midterm elections, putting the onus back on the House to head off a shutdown looming Oct. 1.

The Senate approved the measure in a bipartisan 90-6 vote, with Sen. Darline Graham of South Carolina voting present. The bill would fund federal agencies through Dec. 11 at current levels, with some exceptions. Senate leaders sped up consideration of the legislation as part of an agreement reached Saturday morning to allow members to leave for August recess.

The House and Senate have now each passed different bills aimed at averting a shutdown at the end of the fiscal year. The House bill would fund the government through Dec. 4.

The Senate legislation sets up a year-end standoff over the Trump administration’s controversial plan to put political appointees in charge of approving federal grants. The bill would block the administration from finalizing that rule during the length of the stopgap — and lawmakers are already expecting a December brawl over the issue.

Sen. John Kennedy (R-La.) said this week that he’s going to “fight like hell” in December to ensure Congress doesn’t further obstruct the grant overhaul.

But lawmakers on both sides of the aisle are resistant to the White House approach to grants. Senate Appropriations Chair Susan Collins (R-Maine) said she will “continue to oppose” the Trump administration plans “because I think they politicize the grants process, and I don’t want that to occur.” Sen. Patty Murray of Washington, the top Democrat on Senate Appropriations, said she too would “welcome the fight.”

The Senate rejected an amendment from Sen. Ted Budd (R-N.C.) intended to ensure that a ban on intoxicating hemp products kicks in come November, after Senate leaders at the White House’s urging included language in the funding bill to delay it.

The Senate bill includes language Democrats sought to ensure Immigration and Customs Enforcement and the Border Patrol don’t get any new funding under the patch. Republicans enacted $70 billion for those agencies along party lines earlier this year.

That prohibition could be contentious in the House.

Rep. John Rutherford (R-Fla.) said in an interview that the provision “could be a dealbreaker” and that he’s “not a fan” of the Senate version. Rep. Jeff Van Drew (R-N.J.) said Tuesday that he would say he’s undecided if GOP leadership whipped his vote on the Senate stopgap.

“I do not like the Senate language,” Van Drew said, noting the grant approval provision. “It’s one I would want to know what the president thinks.”

The White House issued a statement of administration policy in support of the Senate’s funding bill. No such memo was issued for the House bill, which did not include the funding increases and authorizations the White House requested.

“Every Member of Congress should support passage of this [continuing resolution] to keep the Government open as discussions on full year appropriations continue,” it reads.

Rep. Rosa DeLauro (D-Conn.), the top Democratic appropriator in the House, praised the Senate measure for including the grant and immigration enforcement language.

“This bill is a clear improvement over the House Republican continuing resolution, but we are still nearly two months away from the end of the fiscal year and should be working together to pass full-year funding bills,” she said in a statement.

Mia McCarthy and Jennifer Scholtes contributed to this report. 

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Senate eyes the exit after GOP-Trump deal

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The Senate is aiming to leave Washington for a five-week recess early Saturday after Republicans cut a deal with President Donald Trump to punt some of their priorities, including a framework for a party-line spending plan.

The Senate is trying to lock in an agreement that would set up votes on a college sports bill, a stopgap government funding bill, Todd Blanche’s attorney general nomination and GOP voter ID legislation, according to a copy of an internal notice reviewed by Blue Light News.

The Senate would then leave Washington until mid-September.

Any one senator could object to the tentative deal, forcing it to be altered or dragging the Senate deeper into the weekend. Senators believe there are still objections to advancing the college sports bill. Democrats are also waiting to see if one of their own will prevent speeding up Blanche’s confirmation.

The breakthrough is a U-turn from earlier Friday evening, when Republican senators emerged from a closed-door meeting predicting they would have to spend Saturday trying to break a stalemate within the party about how to wrap final votes before recess.

Shortly after that meeting, Trump spoke by phone with Senate Republicans including Ron Johnson of Wisconsin, Rick Scott of Florida and Mike Lee of Utah about the path forward for the GOP’s lengthy to-do list.

During the call, according to Johnson, Trump agreed to punt a vote on a budget blueprint for a third party-line spending bill until later in the year. Lee, who has been pushing for action on the separate SAVE America Act, also agreed to drop his demand for a formal, roll call vote on adjourning given the understanding with the president.

“I think the conclusion of the conference – and we had a discussion with the president and he agrees – [is] don’t take the vote tonight,” Johnson said after the meeting in Thune’s office.

Republicans were in talks with the White House throughout Friday. A White House official granted anonymity said Friday evening that “we’re continuing to have productive conversations with senators to advance several legislative priorities.”

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