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Capitol agenda: Thune’s 48-hour megabill scramble

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Senate GOP leaders want to start voting on the “big, beautiful bill” in just two days. Right now, they’re scrambling to rewrite critical pieces of it while major policy disputes remain unresolved.

Catch up quick: Sens. Ron Johnson (R-Wis.), Mike Lee (R-Utah) and Rick Scott (R-Fla.) met separately with Donald Trump at the White House Monday as the president ramps up pressure on fiscal hawks to fall in line. Trump told Scott he wants a repeal of green credits under the Biden-era climate law and supports a balanced budget, the Florida senator said. The trio relayed Trump’s message to House Freedom Caucus members Monday night, but were publicly mum on other details.

Sen. Markwayne Mullin (R-Okla.) signaled progress in closing the chasm between chambers over the state-and-local-tax deduction, suggesting the Senate could keep the $40,000 cap negotiated in the House but change the income threshold. The rub: That combination was publicly rejected by the House’s SALT Republicans days ago.

Meanwhile, Senate GOP leaders are floating a fund to help offset the effects of Medicaid changes on rural hospitals — a major pain point among “Medicaid moderates” balking at Senate Finance’s push to slash the provider tax.

Sen. Josh Hawley (R-Mo.) told reporters he’s “absolutely happy with a rural fund” but cautioned, “I don’t know” if it will solve the issue. House GOP leaders are also warning it won’t pass their chamber.

GOP senators also have to keep in mind the 38 House Republicans who recently warned that Senate Majority Leader John Thune must adhere to a strict linkage between spending cuts and tax cuts in the bill. House Freedom Caucus Chair Andy Harris (R-Md.) told Blue Light News Monday he thinks Senate Republicans are already straying from the House-passed plan.

“It looks like right now, with some of the scoring, it’s not working out,” Harris said. “If it should pass the Senate in its current rumored form, it probably would have trouble in the House.”

What to watch Tuesday: Committees will finish holding meetings with parliamentarian Elizabeth MacDonough. Her last rulings on what can skirt the filibuster are expected as soon as Wednesday. Final text will follow once that process — known as the Byrd bath — wraps up.

Those Byrd droppings have multiple committees racing to redraft their portions of the megabill. Senate Agriculture Republicans believe they can salvage their cost-sharing plan for food aid. Senate Banking Republicans are reworking a proposal to cut funding for the Consumer Financial Protection Bureau.

And Lee is now floating a narrower version of his plan to sell millions of acres of public lands after MacDonough deemed his initial proposal — which had drawn fierce opposition from a quartet of western-state GOP senators — noncompliant. Lee’s effectively halving his old proposal by removing Forest Service lands.

Thune still hopes to hold an initial vote on the megabill Thursday, but acknowledged the parliamentarian’s process is “taking a little bit longer” than anticipated. The raft of unresolved policy disputes have some senators openly doubting he can pull it off, with some predicting the first vote could slip to Friday.

“We’ll eventually pass something,” Sen. John Kennedy (R-La.) told reporters Monday. “I just can’t tell you when.”

What else we’re watching:

Dem Oversight election: Democrats will vote Tuesday morning to decide the top Democrat on the Oversight committee. Rep. Robert Garcia (D-Calif.) is the frontrunner after the Californian clinched a majority of votes from the steering committee on the first ballot.

War powers resolutions: Rep. Thomas Massie (R-Ky.) told Speaker Mike Johnson that he will no longer advance a resolution seeking to block U.S. involvement in the Iran-Israel conflict if the ceasefire that Trump announced holds. But in the Senate, Tim Kaine (D-Va.) said he’s forging ahead with forcing a vote on a similar resolution regardless of the ceasefire, and expects a vote sometime between Wednesday and Friday.

Cassidy’s latest vaccine push: Sen. Bill Cassidy (R-La.) criticized the top vaccine advisers of HHS Secretary Robert F. Kennedy Jr. Monday for lacking experience and urged the agency to delay a scheduled meeting with them. Cassidy said a meeting with the Advisory Committee on Immunization Practices scheduled for Wednesday should not proceed “with a relatively small panel, and no CDC Director in place to approve the panel’s recommendations.”

Garrett Downs, Nicholas Wu, Hailey Fuchs and Kelly Hooper 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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