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
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.
Congress
Trump says July 4 is “not the end all”
President Donald Trump on Friday backed off the July 4 deadline he set for Congress to pass his megabill, acknowledging that the timing could slip as Republicans work through a series of political and logistical hurdles.
“It’s not the end all,” Trump said of the self-imposed Independence Day goal. “It can go longer, but we’d like to get it done by that time if possible.”
The remarks represented a clear softening of the White House’s position from just a day earlier, when Trump administration officials insisted that the GOP lawmakers pass the domestic policy package within a week despite a series of fresh obstacles.
Senate Republican leaders are still struggling to lock down the necessary 51 votes for the bill, amid objections from competing factions over the depth of the legislation’s Medicaid cuts.
The effort has also been hamstrung by a flurry of adverse rulings by the Senate parliamentarian that are now forcing lawmakers to rewrite significant portions of the bill.
The president indicated that he has little interest as of now in trying to directly overrule or even fire the parliamentarian — a step that some close allies in Congress had called for after she disqualified several of the bill’s provisions.
“The parliamentarian’s been a little difficult,” Trump said. “I disagree with the parliamentarian on some things, and on other ways she’s been fine.”
White House press secretary Karoline Leavitt downplayed those issues on Thursday, saying Trump still expected Republicans to coalesce in the coming days and put the bill on his desk by July 4.
But asked directly on Friday, Trump took a more ambivalent stance.
“We have a lot of committed people and they feel strongly about a subject, subjects that you’re not even thinking about that are important to Republicans,” he said, appearing to reference the policy divisions within the Senate GOP conference.
Trump also singled out Sen. Ron Johnson (R-Wis.) for praise despite his resistance to the bill, complaining instead about the lack of Democratic votes.
“The problem we have is it’s a great bill, it’s a popular bill,” Trump said. “But we’ll get no Democrats.”
If all Republicans vote for the bill, it would not need Democrats’ support to pass.
Congress
Muslim Democrats ask leaders to denounce Islamophobic attacks on Zohran Mamdani
All four Muslim Democratic House members are denouncing “racist smears” against Zohran Mamdani from lawmakers in both parties since his New York City mayoral primary win, according to a statement provided first to Blue Light News.
“The vile, anti-Muslim and racist smears from our colleagues on both sides of the aisle attacking Zohran Mamdani cannot be met with silence. These hateful, Islamophobic, and racist tropes have become so entrenched and normalized in our politics,” said Reps. Andre Carson of Indiana, Rashida Tlaib of Michigan, Ilhan Omar of Minnesota and Lateefah Simon of California in a statement.
The lawmakers said that “at a time when we are facing increased violence against elected officials, we cannot allow the attacks on Zohran Mamdani to continue” and asked for elected leaders to speak out on them.
Mamdani, who would become New York’s first Muslim mayor, has faced attacks from GOP lawmakers after his primary win this week. Rep. Nancy Mace (R-S.C.) tied him to the 9/11 terrorist attacks and Rep. Andy Ogles (R-Tenn.) called for him to be deported, among others. The left was also concerned about since-clarified comments from Sen. Kirsten Gillibrand (D-N.Y.) about Mamdani’s rhetoric about Israel.
Critics of the democratic socialist have called some of his comments about Israel, including his defense of the phrase “globalize the intifada,” antisemitic, which he’s denied.
The Muslim lawmakers have sought a more forceful pushback from their leaders to the GOP attacks and have privately approached Democratic leadership about doing so. Speaker Mike Johnson didn’t answer a question from a reporter Friday asking him to respond to the remarks from Mace, Ogles and others.
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