Congress
Capitol agenda: Sprinting into Budget day
House Republicans are steamrolling toward Friday morning’s scheduled Budget Committee markup even as a growing number of issues threaten to block progress on their “big, beautiful bill.”
GOP leaders went back and forth overnight with conservatives after they threatened to tank the bill over key disagreements around Medicaid work requirements and IRA tax credits. Other holdouts are pushing to postpone the markup until all the Congressional Budget Office scores are released, which could take days.
And even if they do strike an agreement in time for the 9 a.m. markup, it could be more or less a handshake. Republicans won’t be able to tweak actual language in the bill Friday — they’ll have to wait for the Rules markup on Monday. And with a list of outstanding issues from different factions in the conference, any addition to smooth tensions could cause a chain reaction of other defections.
Here are the latest sticking points to watch:
MEDICAID — Hard-liners appear to have gotten a bone here, with GOP leadership signaling they are seriously considering moving up the implementation of new work requirements in the program from 2029 to 2027. That could lead to tens of billions of dollars in savings, but would also lead to more coverage losses ahead of the 2028 election.
Most moderates appear on board, but it’s unclear if the changes will be enough to placate hard-liners, who feel the current proposed cuts are woefully insufficient. Conservatives are also pushing for immigrants in the country illegally to be immediately removed from Medicaid access. But additional changes like that could reignite moderates’ wariness.
Meanwhile, Rep. Kat Cammack and other GOP Floridians have concerns about provisions freezing taxes that states levy on providers to finance their Medicaid programs, saying they would hurt Florida more than other states. Still, Cammack voted Energy and Commerce’s portion with those policies out of committee.
IRA CLIMATE TAX CREDITS — Hard-liners are also demanding a faster phase-out of clean energy tax credits enacted under former President Joe Biden’s Inflation Reduction Act. But Hill GOP defenders of the clean energy incentives now have to decide how far to push their demands to spare at least some of the credits.
“We have alternative language and it’s something we’re going to work with leadership to try to get them to implement,” said Rep. Andrew Garbarino (R-NY), co-chair of the House Bipartisan Climate Solutions Caucus.
Speaker Mike Johnson promised to use a “scalpel” and not a “sledgehammer” in any tax credit changes.
FEDERAL EMPLOYEE PENSIONS — Some Republicans are also concerned about a proposal to spur federal employees to contribute more money to their retirement savings. Several moderate Republicans met with Johnson throughout Thursday on the issue.
“You can change people’s pensions that are coming into the workforce,” Rep. Don Bacon (R-Neb.) told Blue Light News. “Don’t change them when they’ve been working. You don’t change the rules on people.”
The plan would hit lawmakers and congressional staffers’ own wallets.
STATE-AND-LOCAL-TAX DEDUCTIONS — The latest proposed number from a key group of blue-state Republicans is $62,000, said Rep. Nick LaLota (R-NY). That’s more than double the current offer in the bill, prolonging the impasse between SALT Republicans and GOP leadership.
“A lot of work to do if we’re going to get this one big, beautiful bill over the finish line, especially by Memorial Day,” LaLota said on Thursday. “Still a lot of variables.”
What else we’re watching:
— Crypto vote incoming: Majority Leader John Thune moved Thursday to tee up landmark cryptocurrency legislation for a procedural vote on the Senate floor early next week. The move comes as negotiators circulate an updated draft of the crypto bill that includes new concessions to Democrats.
— Tucked into the tax bill: The sprawling tax package before the House is pocked with the sort of bespoke tax breaks lawmakers in both parties have long lamented. In a search for votes, and hemmed in by their tiny majority, Republicans have proposed a hodgepodge of tax provisions aimed at narrow constituencies.
— Senate warnings ahead: Key Senate Republicans say the House GOP’s proposal to slash funding for the nation’s largest food aid program would push too many costs on states and won’t pass their chamber. “I’ve read [the House’s bill], and I think it’s going to have a do-over,” Sen. Chuck Grassley (R-Iowa) said.
Samuel Benson, Brian Faler, Jasper Goodman, Meredith Lee Hill, Katherine Tully-McManus and Lawrence Ukenye contributed to this report.
LE SUEUR, Minnesota — The word on John Thune’s mind these days is “resources.”
In the Senate majority leader’s recollection, it was a dominant topic in his recent conversations with President Donald Trump, including at a recent visit to the White House, not to mention in his frequent conversation with Trump’s political team — and in an exclusive conversation with Blue Light News Monday during a Midwest campaign swing.
“I think the president is sincerely interested in trying to do whatever he can to help the team,” Thune said about his midterm conversations with the president and his advisers. “I also share with him, too, the importance of just the resources in some of these states. You know, some of the states have gotten very expensive.”
As Trump focuses on turning out his own voters — a message the president is taking into his own hands in a series of preelection rallies — Thune is making sure he also has money on his mind: “I … just conveyed to him the importance of ensuring that our candidates are well-resourced.”
Thune’s focus underscores the emerging question defining the 2026 midterms: Is there enough Republican money, and can it be spent fast enough, to counter surging Democratic campaigns and a lackluster national environment for the GOP?
It’s a narrative both sides largely agree on — Thune’s Democratic counterpart, Minority Leader Chuck Schumer, said as much last week — even as each leader insists his side will prevail.
Thune declined Monday to put odds on the GOP’s chances of keeping control of the Senate but said repeatedly, “I think we can keep the majority.”
“I think all of these races are margin of error, at least the ones that we have to win,” he added. “And historically, at least if you look at polls, we tend to outperform them.”
Unlike Schumer, who is keeping a low profile in October and focusing on private fundraising, Thune is barnstorming the country — visiting a mix of deep-red and battleground states.
Minnesota was not expected to be in play for Republicans when Thune took over as leader nearly two years ago. Democratic incumbent Sen. Tina Smith had a clear path to reelection in a state that has not elected a GOP senator since 2002.
But Smith chose to retire, and Democrats nominated an unabashed progressive, Peggy Flanagan, who is now facing Michele Tafoya, the well-known former sportscaster, in November. Recent public polls have shown the race in single digits, and Thune was not shy about including it alongside Michigan and New Hampshire as a GOP pickup opportunity.
Mentioning Minnesota is one thing, but investing in it is another, and national groups affiliated with Thune have not made major investments in the state so far. Standing next to Thune at a news conference Monday, Tafoya made the case for that to change.
“We have had three or four straight weeks of really solid polls,” she said. “This is one worth investing in. We are right there.”
But they both kept things vague when asked about Washington Republicans’ potential commitment to the race — including how much cash would be necessary to overcome 24 years of futility and a bad political environment.
Both Thune and Tafoya used the same words to answer that question: “We haven’t had that conversation.”
Thune put the party’s spending decisions into a larger context: “If the president is looking for places where he can make a difference … we’re in touch on a daily basis with his team and hopefully they will — as they already have — continue to help us leverage the resources that we’ve got to bring to bear to get the best possible impact and outcome in these key states.”
Thune pointed to Minnesota as one possible state where Trump could choose to deploy his $400-million-plus war chest. But the tiny national footprint in the Gopher State pales next to the hundreds of millions of dollars being spent in Texas — an expensive state Thune and Trump continue to discuss as Republicans struggle to drag Senate nominee Ken Paxton over the finish line.
Asked about the super-sized investments there, Thune declined to connect the massive spending on Paxton to tough decisions elsewhere on the map. “Dedicated donors” focused on Texas, he said, have meant GOP groups haven’t yet had to siphon funding away from other key states.
But the tough decisions are nevertheless underway. As Republican candidates play defense in a growing list of red states, the Thune-aligned Senate Leadership Fund recently pulled back spending in North Carolina — essentially surrendering a GOP-held seat to Democrats — while increasing its spending in Kansas.
Thune referred to the decision as a “pause” in financial support for nominee Michael Whatley.
The reasons for the political headwinds were on display Monday at an agriculture-focused roundtable, where Thune and Tafoya heard about the impact of Trump’s trade war with Canada, the president’s decision to import foreign beef and the high diesel prices that followed his decision to attack Iran.
Thune, a South Dakotan fluent in farm-state politics, touted Tafoya as someone who could help address some of those concerns by being a “great voice on issues like agriculture” if she makes it to the Senate.
His broader message in the interview, however, was to cast the midterm election as “choice” between the two parties rather than a referendum on the Iran war and the ensuing spike in energy prices. Democrats want “more spending,” “higher costs,” and “open borders,” he said, while Republicans had put “more money in your pockets” with their 2025 tax bill.
“Iran is temporary,” he said. “It will be behind us. Gas prices are going to come down, so who do you want to invest in for the next two years, four years?”
The midterm results carry personal stakes for Thune, who is expected to run for leader again in internal Senate GOP elections that are expected to take place just days after the midterms, regardless of the outcome.
Thune remains well-liked within the Senate GOP conference, and no other senator has raised his or her hand to run against him. But some conservatives, in and out of the Senate, have privately questioned whether Trump would publicly turn on Thune if Republicans lose their majority.
Asked about that possibility, Thune said, “I can’t control that.” He added that “the Republican conference” would ultimately make the decision.
“What the president does or doesn’t do … you just move forward and let the chips fall where they may,” he said. “All I can say is, I’m with him and his team to do the things I think are good for the future of the country.”
When Blue Light News pointed out Trump defended Thune at last month’s GOP midterm convention after some in the crowd booed the mention of his name, he laughed.
“Yeah, I know,” he said. “It’s the little things, right?”
The chair of the House Agriculture Committee said he’s not willing to “accept bad results” as a tradeoff for the benefits of advancements in artificial intelligence — a direct rebuttal to OpenAI CEO Sam Altman.
“As someone who practiced health care for 28 years, I’m never willing to accept bad results. I think we just need to do our best,” Rep. G.T. Thompson, a Pennsylvania Republican, told reporters Monday.
He was responding to Altman’s comments to Decoded by Blue Light News that people “should accept some bad things happening for the benefits of this technology and people having the agency.”
Pressed further on whether he agreed with Altman’s premise, Thompson replied, “No, I think we have to work harder to prevent any bad things from happening.”
Altman’s comments come in the wake of increased panic over the risks of catastrophic destruction from AI, with many industry leaders and experts arguing that guardrails are needed on the technology to prevent it from spinning out of human control.
Pressure is building on Congress to regulate the rapidly-advancing technology, but lawmakers are divided over whether the AI industry needs federal regulation or if it’s capable of governing itself.
The executives of major AI labs and tech companies gathered at the White House last week to discuss solutions with President Donald Trump, who believes overregulating AI will have national security repercussions. The group ended up signing a “morally binding” AI accord that critics say won’t do enough to prevent a worst-case scenario.
Thompson noted Monday he believes that AI will bring “tremendous solutions,” specifically in regards to finding cures for health issues like cancer and Alzheimer’s disease. But he also said AI has to be led with “principle” — comparing it to how he addressed digital assets in a bill to regulate the cryptocurrency industry, which he worked on as chair of the Agriculture Committee.
“The first principle is ‘do no harm.’ So we need to protect consumers, and that means, I think, building some guardrails — some guidelines — to do that,” Thompson said. He added that the second principle is to “foster innovation.”
“I think AI has a lot to do with that,” he added. “I don’t think AI works without RI: Real Intelligence.”
LE SUEUR, Minnesota — Senate Majority Leader John Thune said Monday there is no “consensus” yet on advancing a bill establishing permanent daylight saving time even as President Donald Trump ramps up pressure on Republicans to pass it.
Thune addressed the matter in a Monday interview after Trump used his Truth Social account multiple times over the weekend to rail against the legislation, known as the Sunshine Protection Act — going so far as to post the personal cell phone number of one of its GOP opponents, Sen. Tom Cotton of Arkansas.
“The president feels strongly on it like he does a lot of issues,” he said. “It’s something we’re having conversations about but there’s no clear path forward or consensus on it yet.”
While Trump singled out Cotton for scrutiny, Thune made clear the opposition to the permanent daylight saving time proposal — which would lead to very late winter sunrises in some parts of the country — ran deeper than one senator.
Cotton has publicly voiced opposition to the proposal for year, citing, among other things, the fact that children in his state would be going to school in the dark for part of the year.
Sen. Roger Wicker (R-Miss.) voiced similar objections Monday to reporters in the Capitol, saying he was mindful of “safety concerns in the more northern and rural states where children get on the school bus in very early hours.”
Thune, who spoke during a campaign swing in Minnesota with GOP Senate nominee Michele Tafoya, has himself opposed previous daylight saving bills. He said Monday that “a lot of it depends on where you are in the country” and that “your geography probably has as much to do with your position on that as anything.”
Sen. Rick Scott (R-Fla.), who has aligned himself closely with Trump, is among the lawmakers who have been pushing to get the bill through the Senate. He recently told POLITICO, “I’m going to make sure it gets passed this year.”
Riley Rogerson contributed to this report.
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