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Democrats set to target multiple Senate GOP tax provisions

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Senate Finance Committee staff is expected to meet Monday with Senate Parliamentarian Elizabeth MacDonough, with Republicans and Democrats presenting competing cases for whether health provisions of the pending GOP megabill comply with the chamber’s rules for party-line budget legislation.

That means the critical debate over trillions of dollars worth of proposed GOP tax cuts won’t happen with MacDonough until Tuesday, according to a Senate Democratic aide who was granted anonymity to share details of the private meetings.

Democrats will attempt to strip out a number of provisions from the legislation, arguing that they don’t meet the criteria for the filibuster-skirting reconciliation process. Among their many targets are provisions that would loosen regulations and eliminate taxes on firearm silencers and certain kinds of rifles and shotguns, the aide said.

Democrats will also target GOP provisions that establish a new certification system for tax credits for low- and middle-income workers. Democrats also want to strip out a generous new tax credit for donations to private school scholarships, the aide said.

Lastly, Democrats will raise a “long list” of issues associated with Republicans’ use of a new accounting method for their tax legislation, which would zero out the cost of extending trillions of expiring tax cuts from the GOP’s 2017 tax bill. The debate over the so-called current policy baseline will be consequential, with Democrats likely to sound the alarm that the unprecedented use of the maneuver would entirely erode long-standing budget rules.

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Congress

Megabill delay ‘possible,’ Johnson says

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Speaker Mike Johnson opened the door Friday to a possible megabill delay past the GOP’s self-imposed July 4 deadline.

“It’s possible … but I don’t want to even accept that as an option right now,” he told reporters as Republicans scramble to cut a series of deals with holdout members. Johnson said he had spoken with his Senate counterpart, Majority Leader John Thune, in the “last 20 minutes.”

Already time is running tight for Republicans. With the Senate not expected to start debating the bill until Saturday at the earliest, the House might not get the bill until Sunday. Johnson confirmed he plans to observe a House rule giving members at least 72 hours to review the bill before floor consideration begins.

“The House will not be jammed by anything,” he added.

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Mike Johnson hails ‘progress’ toward SALT deal

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The White House is close to clinching an agreement on the state and local tax deduction after a last-ditch flurry of negotiations with blue-state House GOP holdouts and Senate Republicans, according to three people granted anonymity to describe the talks.

Treasury Secretary Scott Bessent, who is brokering the politically complex deal that is key to unlocking the GOP megabill, will attend Senate Republicans lunch later today, according to a another person with direct knowledge of the matter.

Speaker Mike Johnson told reporters Friday morning that there was “a lot of progress yesterday” at an evening meeting of SALT Republicans and Treasury officials and that he expected the issue to get “resolved in a manner that everybody can live with.”

“No one will be delighted about it, but that’s kind of the way this works around here,” he said. “But the other issues [with the megabill], I think, will be resolved, hopefully today, and we can move forward.”

However, one hard-line SALT holdout, New York Rep. Nick LaLota, said: “If there was a deal, I’m not a part of it.”

Jordain Carney contributed to this report.

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Capitol agenda: How Trump could get his July 4 megabill

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Republicans’ “big, beautiful bill” is in tatters. President Donald Trump still wants it on his desk by July 4. Here’s everything that will have to go right to make that happen:

GOP senators and staff now believe Saturday is the earliest voting will start on the bill. Senate Majority Leader John Thune acknowledged Thursday that parliamentarian rulings forcing Republicans to rewrite key provisions of the bill are throwing his timeline into chaos.

A Saturday vote would assume no more major procedural issues, but that is not assured: Republicans could run into trouble with their use of current policy baseline, the accounting tactic they want to use to zero out the cost of tax-cut extensions. Other adverse recommendations from Parliamentarian Elizabeth MacDonough could force additional redrafts of Republicans’ tax plans.

Even if Republicans resolve every outstanding issue with the parliamentarian in the next 24 hours, Thune needs to firm up his whip count. The cap on state provider taxes remains among the thorniest issues, with senators threatening to block debate on the megabill until the Medicaid financing issue is resolved.

If the Senate does vote Saturday to proceed, expect Democrats to use the bulk of their 10 hours of debate time, while Republicans forfeit most of theirs. Then comes the main event — vote-a-rama — which would set up likely final passage for sometime Sunday.

That starts the timer for the House. GOP leaders there have pledged to give members 48 hours’ notice of a vote — and they have already advised the earliest that voting could happen is Monday evening. Republicans will have to adopt a rule before moving to debate and final passage.

But the House’s timeline depends wholly on what condition the megabill is in when it arrives from the Senate. Groups of House Republicans are already drawing red lines on matters ranging from SALT to clean-energy tax credits to public land sales. The hope is that the Senate will take care of those concerns in one final “wraparound” amendment at the end of vote-a-rama.

If they don’t, House GOP leaders are adamant that there will need to be changes — likely pushing the timeline deep into July, or perhaps beyond. For one, House Majority Leader Steve Scalise said Thursday the Senate’s slower phase-out of clean-energy tax credits “will need to be reversed,” or else.

“If there are major modifications that we cannot accept, then we would go back to the drawing board, fix some of that and send it back over,” Speaker Mike Johnson said Thursday. “So we should avoid that process, if possible.”

What else we’re watching:

— Senate war powers vote: Senators are expected to take an initial vote at 6 p.m. on Sen. Tim Kaine’s (D-Va.) resolution that would bar the president from taking further military action in Iran without congressional approval. Kaine believes Republicans will support the measure but won’t say who or how many.

— House Iran briefing: House members will receive a briefing on the Iran conflict from Defense Secretary Pete Hegseth, Secretary of State Marco Rubio, Gen. Dan Caine and CIA Director John Ratcliffe in the CVC auditorium at 9 a.m. This comes as some House lawmakers are mulling two competing war powers resolutions, which Johnson could attempt to quash in advance using a rule.

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