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Capitol agenda: Make-or-break markup day

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House Republicans are gearing up for their most consequential megabill markups Tuesday with massive, unresolved policy fights that could unravel President Donald Trump’s “big, beautiful bill.”

WAYS AND MEANS — At least one blue-state Republican is threatening to torpedo the GOP’s tax package over Chair Jason Smith’s proposal to triple the cap on the state and local tax deduction to $30,000 and limit it to people who make $400,000 or less.

“The bill is dead effectively on the floor,” Rep. Nick LaLota, one of a quartet of so-called SALT Republicans advocating for a higher cap, told POLITICO Monday night. Smith “insulted us with fake numbers” and “demonstrated bad faith in presenting a bill that … doesn’t even come close to earning our vote,” said LaLota, who is not on Ways and Means, but whose support will be necessary when the bill comes to the House floor.

But the SALT plan isn’t final. Ways and Means will use the placeholder language when it marks up its portion of the megabill at 2:30 p.m., with the expectation that negotiations will continue until the floor vote on the full legislation. Speaker Mike Johnson huddled with SALT Republicans and other top GOP lawmakers on Monday, and many Republicans involved in the talks believe they’ll end up compromising on slightly higher numbers, according to people familiar with the discussions.

ENERGY AND COMMERCE — The panel is poised for an epic, Medicaid-focused markup starting Tuesday at 2 p.m. that could continue overnight and late into Wednesday. Committee Democrats say it could run longer than the marathon 27-hour markup during Republicans’ unsuccessful attempt to repeal the Affordable Care Act in 2017.

Expect Democrats to offer a host of amendments to try and force Republicans into difficult votes over Medicaid. So far, it looks like Chair Brett Guthrie has gotten moderates on board with a plan that would force states to make some difficult decisions. One centrist panel member, Nick Langworthy, said he’s been won over, calling Guthrie’s gambit a “bold” proposal that protects Medicaid “for those who genuinely need it.” The bigger test may come after the markup, however, when it hits the floor and goes up against conservatives angling for deeper spending cuts.

Required reading ahead of E&C’s markup: How Guthrie, who has long wanted to overhaul Medicaid, is selling a compromise.

AGRICULTURE — The most contentious plan for the Supplemental Nutrition Assistance Program is officially on tap Tuesday: Forcing states to pay for part of the program using a sliding scale based on their payment error rates, beginning fiscal year 2028. Some Republicans fear this cost-share plan would disproportionately impact rural and red states including Alaska and South Carolina.

Agriculture Committee lawmakers will begin their markup at 7:30 p.m. and break at midnight, then reconvene for amendment debate at 10 a.m. Wednesday.

What Democrats are doing amid these megabill markups: Staying on message. The DNC is sending a mobile billboard around Blue Light News this morning criticizing Republicans for cutting Medicaid and SNAP, according to plans shared first with Blue Light News. And the Democratic Women’s Caucus is urging Republicans across these three committees not to cut safety-net programs, according to a letter sent Tuesday that Blue Light News obtained first.

“We have heard from women and families from across the country, and the message is clear — do not cut programs and services that deliver basic necessities like food and health care for women and families,” the caucus wrote.

Across the Capitol: Many GOP senators are bristling over some of the policies their House counterparts are pursuing. Sen. Ron Johnson said Monday he’d oppose the current House megabill for not going far enough to reduce the deficit, in a preview of problems to come for the party-line bill.

What else we’re watching:

— It’s not just Medicaid: Lawmakers are also proposing a dramatic concession to the tech industry as part of the Energy and Commerce contribution to the GOP megabill. When the committee meets later Tuesday, members will consider a 10-year moratorium on state and local regulation of AI models, amid growing tensions between federal lawmakers and state regulators. (Though it’s not likely to survive the Senate’s Byrd Rule.)

— Library of Congress fallout: Add Senate Majority Leader John Thune to the list of congressional leaders pushing back against Trump’s decision to fire top officials at the Library of Congress. Thune said on Monday that lawmakers “want to make sure we’re following precedent and procedure” in naming a replacement for ousted Librarian of Congress Carla Hayden. He added: “We want to make sure congressional equities are respected and protected in this process.”

— Dem Oversight race: Rep. Jasmine Crockett is planning to run for her party’s top slot on House Oversight after wavering last week when Rep. Kweisi Mfume, one of the most senior Democrats on the panel and a fellow Congressional Black Caucus member, started making moves toward a bid. In a text message sent to colleagues, Crockett said the current times “call for an extraordinary response” which is why she is seeking the position.

Anthony Adragna, Jordain Carney, Mohar Chatterjee, Hailey Fuchs, Benjamin Guggenheim, Meredith Lee Hill, Nicholas Wu and Grace Yarrow contributed to this report.

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Congress

GOP, Democrats blast Vought for holding back cash: ‘You don’t have the authority to impound’

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Senators from both parties chided the Trump administration Thursday for continuing to withhold funding Congress has approved, more than a year after the White House first froze billions of dollars for temporary “review.”

During White House budget director Russ Vought’s testimony before the Senate Budget Committee, Sen. Chuck Grassley (R-Iowa) scolded the OMB chief for not sending hundreds of millions of dollars the Trump administration is supposed to give states throughout the year to support community services aimed at reducing poverty.

“Congress has appropriated money, and you don’t have the authority to impound it,” Grassley said about the more than $810 million Congress appropriated this year for the Community Services Block Grant program.

That program helps states fund anti-poverty services such as transportation, education and nutrition assistance that serve more than 9 million people each year.

Grassley told Vought that lawmakers “are not getting any answers” as to why the Trump administration hasn’t sent states their quarterly funding from the program. “I want those quarterly allotments released,” Grassley said.

While Vought did not directly address Grassley’s comments, he said at a different point during the hearing that “we have not impounded a single thing.”

Other senators, including Sen. Mark Warner (D-Va.), lamented federal dollars being withheld for the fund that provides capital to small banks and credit unions in underserved areas. For months lawmakers from both parties have pushed back against Trump’s plans to eliminate that program, the Treasury Department’s Community Development Financial Institutions Fund.

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FISA extension vote delayed

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House GOP leaders are pushing back the planned 3:15 p.m. procedural vote related to the bill extending a key spy power due to expire in four days.

Leaders are continuing to negotiate with hard-liners to come up with a deal that can pass the chamber.

No new time has been set for the rule vote.

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Senate Republicans ‘syncing’ immigration funding plan with House GOP

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Senate Majority Leader John Thune said Thursday that GOP leaders want to make sure Republicans in both chambers are aligned as they move ahead with a party-line plan for immigration enforcement funding.

The South Dakota Republican told reporters he hopes the Senate will adopt a budget framework “by middle-to-the-end of next week,” the first step to unlocking the filibuster-skirting power to clear a package of up to $75 billion for ICE and Border Patrol.

Then ideally the House would adopt the Senate budget measure without changes, Thune said, allowing Republicans to move on to passage votes on a final bill to fund the immigration enforcement agencies.

“We’re communicating as much as we can, making sure that we’re syncing this up and doing it in the way that meets the requirements that both bodies have,” Thune said Thursday, following a meeting Wednesday with Speaker Mike Johnson for a routine check-in.

The attempt at GOP unity comes after House Republicans hotly rejected the Senate’s proposal last month to fund most of the Department of Homeland Security, where funding lapsed more than two months ago. Now several House GOP lawmakers are also insisting Republicans fund all of the department through the party-line budget reconciliation process — not just the immigration agencies Democrats won’t support without new rules on the Trump administration’s immigration enforcement tactics.

Senate Budget Chair Lindsey Graham (R-S.C.) told reporters Thursday afternoon that he hopes to release text of the budget framework in short order.

“We’re working on all that. Hopefully we’ll find consensus here soon. But I think we’re getting close,” he said.

“I hope we can get moving on it as early as next week,” Graham added.

Senate Republicans have started talking to their chamber’s parliamentarian as they seek to enact the party-line package — one piece of their two-part plan to end the DHS shutdown that began in mid-February.

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