Congress
Capitol agenda: Senate says SALT isn’t settled
Pity Speaker Mike Johnson this morning.
Not only does he have to deal with Elon Musk trying to sabotage the “big, beautiful bill,” Johnson is now staring down Senate tax writers who are doubling down on threats to scale back his carefully negotiated deal to raise the state-and-local-tax deduction cap.
Senate Finance Republicans left the White House on Wednesday without decisions on key tax provisions in the bill. But two things are clear: Senators want to make President Donald Trump’s business tax incentives permanent, not just extend them for five years as the House did. And to help pay the roughly half-trillion-dollar price, they’re ready to carve up the House’s deal to quadruple the SALT deduction limit.
SALT Republicans don’t have the same leverage in the Senate that they do in the House — because they simply don’t exist in the other chamber.
“There’s not a single [Republican] senator from New York or New Jersey or California,” said Finance Chair Mike Crapo (R-Idaho). That means there’s not much appetite “to do $353 billion for states that, basically, the other states subsidize.”
But Senate Republicans are keenly aware of the House’s precarious math problem. If they send a package back to the House with significant SALT changes, it could derail the timeline for Trump’s biggest legislative priority.
“We are sensitive to the fact that, you know, the speaker has pretty narrow margins, and there’s only so much that he can do to keep his coalition together,” Sen. Todd Young (R-Ind.) told reporters. “At the same time it wouldn’t surprise people that the Senate would like to improve on their handiwork.”
Where’s Trump? The president on Wednesday didn’t directly tell lawmakers not to meddle with the House’s SALT deal. But he, too, is playing the numbers game. “He said, ‘You do this, do we lose three votes here? If you do that, do you lose three votes here?’” Sen. Ron Johnson (R-Wis.) told reporters after the meeting.
Senate Majority Leader John Thune also conceded the difficult calculus on SALT, telling reporters “we understand that it’s about 51 and 218” and “we will work with our House counterparts and the White House” to move the megabill.
There’s been a breakthrough elsewhere, though: With Commerce preparing to release its draft bill Thursday, Sen. Mike Rounds (R-S.D.) told Blue Light News Wednesday that he’s satisfied a planned spectrum auction will protect national security, with specific frequencies used by the military shielded through 2034.
One potential wrinkle: Rounds later suggested to Blue Light News that the deal that was still being finalized Wednesday could look to free up other frequencies “that the business community is going to be concerned with.”
What else we’re watching:
— Appropriations moving: Speaker Johnson plans to meet Thursday with top GOP appropriators about what funding totals to use in drafting the dozen government funding bills they’ll write this summer. House Appropriations is forging ahead with markups Thursday on two of the 12 bills, even before GOP leaders and his dozen subcommittee chairs — “the cardinals” — have settled on numbers for the full slate.
— Senate Banking meeting: Senate Banking Republicans will propose provisions that would change the pay scale for Federal Reserve employees and zero out funding the Consumer Financial Protection Bureau as part of the Senate version of the GOP megabill, according to a committee staff memo obtained by Blue Light News. Banking Republicans are scheduled to meet Thursday morning to discuss the proposal.
— Lutnick on Blue Light News (again): Commerce Secretary Howard Lutnick is back on Capitol Hill Thursday to testify in front of House Appropriations. Expect him to be back in the hot seat after Sen. John Kennedy (R-La.) grilled him on Wednesday over the Trump administration’s tariffs.
Jasper Goodman, John Hendel and Jennifer Scholtes contributed to this report.
Congress
Cornyn gets a big fundraising boost in Texas Senate primary against Paxton
John Cornyn is not going down without a fight.
After months of polls showing the four-term Texas senator trailing in the Republican primary, a pro-Cornyn super PAC raised almost $11 million in the most recent fundraising period.
Texans for a Conservative Majority, the outside group supporting Cornyn in his primary challenge from Texas Attorney General Ken Paxton, will have over $12 million cash on hand after the current fundraising quarter. The group has raised over $10.9 million in the quarter after Paxton announced his primary challenge against Cornyn.
Cornyn has been consistently trailing polls in the Senate primary against Paxton, whose indictment and impeachment over corruption and bribery charges left him well regarded by conservative grassroots activists loyal to Donald Trump but viewed skeptically by Republican operatives worried about his reception among swing voters in a midterm election.
“This first report shows what the armchair pundits fail to realize — this race is only beginning in earnest,” Aaron Whitehead, the executive director of the outside pro-Cornyn group, told Blue Light News. “With eight months to go before the March primary, Texans for a Conservative Majority is well positioned to take the fight to Ken Paxton and independently support Senator John Cornyn’s re-election.”
Texas’ primary will be held on March 3, 2026.
Congress
Capitol agenda: Murkowski slams brakes on megabill
Senate Majority Leader John Thune’s ability to pass the “big, beautiful bill” is hinging on Sen. Lisa Murkowski.
The Alaska senator has been the subject of an intense whip effort by GOP leaders over the past couple of hours as they try to offer her reassurances on Medicaid and food assistance. Thune, Finance Chair Mike Crapo (R-Idaho) and Senate Majority Whip John Barrasso talked to Murkowski on the floor for roughly an hour overnight. Thune and Murkowski huddled briefly in his office, and they were mum on details when they emerged shortly before 4 a.m.
Just moments ago, the Senate parliamentarian ruled that proposed SNAP carve-outs for Alaska and other states are compliant with the Byrd rule. But Republicans have struggled to get approval for a Medicaid provision also aimed at Murkowski’s home state.
Murkowski is also among the Republicans who have been pushing an amendment to undo the rollback of clean-energy credits under the Biden-era climate law.
Thune insisted to reporters moments ago that senators were closing in on the end of their vote-a-rama.
“We’re close,” he said, adding that they have a few more amendments from senators and a final so-called wraparound amendment to come.
In a potential sign of just how dire Thune’s whip count was looking in the wee hours, the majority leader huddled in his office with Sen. Rand Paul (R-Ky.), who’s long said he would be a “no” on the bill over its debt-ceiling hike.
Another big unknown right now is where Sen. Susan Collins will fall. The Maine senator reminded us less than two hours ago that she’s “said all along that I have concerns with the bill” and also reiterated, when prompted by reporters, that she would have preferred breaking out the tax portion of the policy package on a separate track. Certainly not helping win Collins over: Her bid to boost money for rural hospitals went up in flames.
And major policy fights remain unresolved, including Sen. Rick Scott’s (R-Fla.) divisive amendment to scale back federal payments under the Affordable Care Act’s Medicaid expansion. Scott has leadership’s support on this one and said he expects it to pass. But several GOP senators have openly raised concerns with it.
What else we’re watching:
— Megabill goes to House Rules: Assuming the Senate passes the bill, the House is expected to bring the bill to the Rules Committee at noon on Tuesday, though two people with direct knowledge of the plans say it could get pushed amid delays with the Senate vote-a-rama.
— The next funding battle begins: Senate appropriators plan to move forward with marking up fiscal 2026 government funding bills starting next week. House Appropriations is scheduled to vote July 10 on the Commerce, Justice, Science bill and the Energy and Water Development bill. House Appropriations Chair Tom Cole (R-Okla.) wants to finish marking up all 12 funding bills by the end of July.
Congress
Trump & Co. launch final megabill pressure campaign
President Donald Trump and his top deputies have started their final public push to get the “big, beautiful bill” over the finish line as the Senate struggles to finish up the legislation.
Stephen Miller, Trump’s top policy aide, appeared on Fox News Channel’s “Hannity” Monday night, about 12 hours into the Senate “vote-a-rama,” to angrily rebut criticisms of the bill and fiercely defend its contents.
“I am sick and tired of the lies about this bill that have been perpetrated by the opportunists who are trying to make a name for themselves. This is the most conservative bill of my lifetime.”
Around that time, White House budget director Russ Vought took apparent aim at deficit hawks concerned about the expanding costs of the Senate version of the megabill in an X post. He embraced the Senate’s “current policy baseline” accounting, zeroing out the cost of extending the 2017 Trump tax cuts.
“Remember, those saying that the Senate bill increases deficits are comparing it to a projection where spending is eternal, and tax relief sunsets,” he said. “That is a Leftist presupposition, and thankfully the Senate refused to let the bill be scored that way.”
Shortly before midnight, Vice President JD Vance also weighed in on X, arguing that the megabill’s border security and immigration provisions alone made it worthwhile.
“Everything else — the CBO score, the proper baseline, the minutiae of the Medicaid policy — is immaterial compared to the ICE money and immigration enforcement provisions,” he wrote.
Then, at 12:01 a.m., Trump himself posted to Truth Social: “Republicans, the One Big Beautiful Bill, perhaps the greatest and most important of its kind in history, gives the largest Tax Cuts and Border Security ever, Jobs by the Millions, Military/Vets increases, and so much more. The failure to pass means a whopping 68% Tax increase, the largest in history!!!”
Meanwhile, the Senate kept voting, with no final deal yet in sight.
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