Congress
From spaceports to venture capitalists, tailored tax breaks add billions to megabill
Special tax breaks for venture capitalists, Alaskan fisheries, spaceports, private schools, rum makers and others — together costing tens of billions of dollars — quietly caught a ride on Republicans’ sprawling domestic policy megabill.
The legislation is primarily designed to prevent $4 trillion in looming tax increases set to hit at the end of this year. But, shortly before approving the plan, Senate Republicans added a new crop of unrelated, bespoke tax breaks. House GOP lawmakers got in their share, too.
Many are the sort of narrowly targeted breaks Republicans have long complained are unfair, reward influential special interests and unnecessarily complicate the tax code.
There’s a new supersized deduction for business meals — though only for employees at certain Alaskan fishing boats and processing plants, with the measure stipulating the facilities must be “located in the United States north of 50 degrees north latitude” though not in a “metropolitan statistical area.”
There’s a $17 billion expansion of a little-known provision that enables venture capitalists to make a fortune tax-free.
Sen. James Lankford (R-Okla.) won a carve-out for the oil and gas industry from a minimum tax on big corporations that was created during the Biden administration.
There’s a $2 billion break important to the rum industry and, tangentially, Louisiana, said Sen. Bill Cassidy (R-La.), a tax writer.
“We have the highest per capita intake of alcohol in the nation,” he said.
The targeted tax breaks have been overshadowed by the main purpose of the legislation: preventing a whole slate of tax cuts from expiring at the end of this year, and enacting a handful of breaks for things like tips and overtime pay that President Donald Trump had promised.
But they nevertheless got the same fast-track-into-law treatment, despite some seeming to come out of nowhere with little public vetting.
Some House Republicans grumbled about the provisions — “loaded with pork to buy key Senate votes,” the chamber’s hard-right Freedom Caucus said in a memo to colleagues. But House lawmakers backed down from threats to sink the plan over fiscal concerns and other complaints, and approved it Thursday on a 218-214 vote that sends it to Trump for his signature into law.
Even as Senate Republicans added their own provisions to the legislation, they deleted some earmarks that had been approved by the House.
Though some of the add-ons are small — like an increase in a special deduction for certain Alaskan whaling captains to buy weapons and maintain their boats — others have price tags that run in the billions.
The bill includes an expansion of a little-known break that Silicon Valley investors have used to nix tax bills on tens and even hundreds of millions of dollars in earnings from Internet startups. Another spends $26 billion to create a new $1,700 credit for people who give to groups providing scholarships for children to attend private school.
Sen. Mitch McConnell (R-Ky.) secured a $7 billion tax cut for farmers that allows them to postpone paying some of the capital gains taxes they owe when selling off farmland.
There’s also a $1 billion provision allowing “spaceports” — which the legislation defines as “any facility located at or in close proximity to a launch site or reentry site” — to sell tax-exempt bonds, like airports. Sen. Ron Wyden, the chamber’s top Democratic tax writer, said in an X post that “Trump’s wedding gift to [Jeff] Bezos and birthday gift to [Elon] Musk were tucked in the new budget bill.”
Finance Chair Mike Crapo (R-Idaho) chafed at suggestions the various tax breaks are earmarks.
“I wouldn’t describe them that way,” he said. “You can go through there and find 100 specific issues, and if you want to call them earmarks, that’s your choice, but I don’t think they are.”
“Would you say that if we build a highway, would you say we’re doing an earmark for roads?” he said. “It’s infrastructure policy.”
His colleagues are likewise defending their provisions.
Lankford says the special break for oil and gas companies is needed because the arcane calculations that go into determining when a company is subject to a 15 percent minimum tax are biased against the industry.
The provision reverses the “tax penalty Democrats placed on America’s energy producers and allows our producers to deduct essential capital costs just like any other manufacturer,” he said.
Cassidy said the rum item is a permanent version of a temporary break lawmakers have approved many times before. The Treasury has long transferred federal excise taxes imposed on rum made in Puerto Rico and the Virgin Islands and sold in the U.S. back to those governments.
“We’re attempting to provide certainty for businesses, and that includes distillers,” said Cassidy, whose sugarcane-producing state is part of their supply chain.
Democrats tried, unsuccessfully, to kill some of the proposals.
During Senate deliberations, Sen. Mazie Hirono (D-Hawaii) watched her amendment targeting the private-school tax break win bipartisan support but nevertheless go down on a 50-50 vote.
“Nearly 90 percent of K through 12 students attend public schools, yet Republicans are pushing a plan in this bill to undermine support for public schools,” she said. Sen. Ted Cruz (R-Texas) retorted that Democrats “are more beholden to teacher union bosses than they are dedicated to fighting for kids.”
Even as they added their own pet projects, Senate Republicans jettisoned earmarks that had been approved by their colleagues in the House. Out is an $800 million tax cut for corporations that have income in the Virgin Islands.
They also dumped plans to spend $10 billion on a provision pushed by the fitness industry, including the YMCA, that would have allowed people to count gym-membership fees as a medical expense in Health Savings Accounts. A provision boosting the Earned Income Tax Credit for some Purple Heart winners was similarly axed.
It wasn’t all bad news for House members, though.
Rep. Mike Kelly (R-Pa.) was pleased to see Senate Republicans reinserted his plan sending a $3 billion tax break to real estate investment trusts, after lawmakers had initially deleted it from their draft.
“It was a little questionable about what was going to go and what wasn’t,” he said.
And Senate Republicans not only kept a House-approved provision exempting gun silencers from a long-standing $200 tax on firearms — they dumped the tax on all guns it applied to, except machine guns and what the legislation terms “a destructive device.” That cost: $1.7 billion.
Rep. David Kustoff (R-Tenn.) hailed the plan, calling the charge “an illegal poll tax used as a piggy bank for the federal government.”
Congress
Rand Paul is facing an ICE funding dilemma
Just a few months ago, President Donald Trump denounced Rand Paul as a “sick wacko” who opposes “everything.” Now the Kentucky senator is a key gatekeeper for one of the president’s biggest priorities.
As chair of the Senate Homeland Security and Governmental Affairs Committee, Paul faces a stark choice as his fellow Republicans race to pass a party-line immigration enforcement bill by Trump’s June 1 deadline. At the same time, he’s confronting his own political future.
Paul’s colleagues sidelined him last year when he refused to give as big a cash infusion for border security as the White House wanted. Now he must decide whether to go along as GOP leaders discuss potentially funding parts of DHS for as long as a decade.
It would come as little surprise if Paul raised objections. Known in Washington as a perennial leadership gadfly, he’s repeatedly broken with Trump since January 2025 on everything from tariffs to the ongoing Iran war and last year’s deficit-busting megabill, where he was one of three Senate Republicans who voted no.
Paul is also eyeing a possible presidential run in 2028 as he tries to get the GOP to look past Trump’s dramatic expansion of federal power and illustrate there is still room for libertarian-leaning, small government Republicans like him.
Spokespeople for Paul and the committee he chairs did not respond to a request for an interview. They also did not respond to a question on whether they have gotten any guidance yet on what the Kentucky Republican’s role will be in the immigration enforcement funding push.
Under the filibuster-skirting budget reconciliation process GOP leaders are hoping to employ, Paul’s committee is expected to be asked to hand over legislative language as part of a bill that will deliver tens of billions of dollars to ICE and parts of Customs and Border Protection. Paul has criticized those agencies at times, suggesting they should not get a blank check as they face questions about their use of force.
“This isn’t because I want no ICE,” Paul told reporters earlier this year. “I want people to trust ICE. I want people to trust the immigration authorities and I think they do hard work.”
A senior White House official granted anonymity to speak candidly downplayed any concerns about Paul in the upcoming reconciliation bill, noting he recently backed the administration’s plans for a major White House renovation. The official also questioned whether Paul, who has repeatedly voted to advance a House-passed bill that includes immigration enforcement money, would want to be against DHS funding.
“Rand voted for the ballroom, right?” the official said, referring to Paul’s ex-officio vote on a D.C. planning board.
His colleagues are not as convinced.
“Rand generally votes no,” Sen. John Kennedy (R-La.) said in an interview.
Paul’s fellow Republicans likely wouldn’t have voluntarily picked the maverick senator to shape an immigration enforcement bill, but he secured the gavel on the Homeland Security panel last year by dint of seniority.
After spending years warning against an overreaching federal government, Paul raised pointed concerns about some of the Trump administration’s immigration enforcement tactics after federal agents shot and killed two U.S. citizens in Minneapolis in January. He was also the only Republican to oppose Markwayne Mullin’s nomination as Homeland Security secretary, arguing in part he did not have the temperament to run the department.
During a recent CBS News interview, Paul argued more broadly that Congress wasn’t doing enough to check the administration and put the odds at “50-50” that he makes another run for the White House in 2028.
“I’m not going to do it just to do it,” Paul said. “It would be … because we need to have a free-market wing, we need to have a free-trade wing of the party who is not eager for war.”
Paul previously ran for president in 2016 but dropped out shortly after the Iowa caucuses. A bill currently moving through the Kentucky state legislature would allow Paul to run simultaneously for president and reelection to the Senate in 2028 — something he unsuccessfully pursued ahead of his 2016 run.
Trump, for his part, has repeatedly criticized Paul as a frequent roadblock in public remarks and on his Truth Social account — including the November “sick wacko” reference. He took notice this month when Paul agreed to green-light the White House ballroom in a vote of the National Capital Planning Commission. (Paul’s chief of staff attended the meeting and cast the vote on his behalf.)
“I am pleased to announce that even Board Member Senator Rand Paul, known as an extraordinarily difficult vote, voted a strong YES,” Trump said in a Truth Social post.
But it was Paul’s spending-hawk tendencies that got him sidelined by the White House and his GOP colleagues last year as they sought to wrap up the party’s tax-cuts-focused megabill. Senate Budget Chair Lindsey Graham (R-S.C.), in coordination with party leaders, effectively discarded Paul’s border security proposal and inserted his own language into the bill.
Paul and Graham had released substantially different proposals for funding under the Homeland Security panel’s jurisdiction. Paul proposed $6.5 billion for building the border wall, while Graham pitched $46.5 billion. Graham proposed $45 billion for ICE detention facilities, roughly twice what Paul proposed.
Graham at the time dismissed Paul’s pitch for a lower funding level as “shallow,” and members of the Homeland Security panel said Paul hadn’t consulted with them.
Paul has said little about how he is thinking about the upcoming GOP immigration enforcement push. He has separately warned that he does not support including funding for the Iran war in a reconciliation bill.
If the bill stays narrowly focused, Paul could have less sway as the bill is tightly negotiated by House and Senate Republican leaders, as well as the White House. The Judiciary Committee, not the committee Paul chairs, drafted a significant swath of the immigration language in last year’s megabill.
GOP colleagues aren’t vowing yet that they will sidestep him as they scramble to meet Trump’s deadline. But they are making clear that the DHS provisions will ultimately be decided by what can get the votes needed to clear the Senate — even if that does not comport with what the libertarian-leaning Kentuckian wants.
A GOP senator granted anonymity to speak candidly predicted Paul would have “influence” as the committee chair, but not a final say.
“Ultimately what it’ll come down to is where there’s 51 votes,” the senator added.
Senate Majority Leader John Thune added in an interview that Paul and other committee chairs tasked with writing the bill would have “input.”
Eli Stokols contributed to this report.
Congress
Pam Bondi still on the hook for Epstein testimony, Oversight panel says
House Republicans indicated Wednesday they will continue to seek sworn testimony from Pam Bondi on the Justice Department’s handling of the Jeffrey Epstein case, even after her ousting as attorney general.
The House Oversight Committee subpoenaed Bondi for an April 14 deposition, but that date was never confirmed by Bondi, and the panel said in a statement that it will continue to seek a date for her testimony.
“The Department of Justice has stated Pam Bondi will not appear on April 14 for a deposition since she is no longer Attorney General and was subpoenaed in her capacity as Attorney General,” a spokeswoman for Oversight Republicans said in a statement. “The Committee will contact Pam Bondi’s personal counsel to discuss next steps regarding scheduling her deposition.”
Oversight Chair James Comer (R-Ky.) issued a subpoena to Bondi last month after five Republican lawmakers on the panel joined with Democrats to compel her testimony. The campaign to force Bondi to sit for questioning was championed by Rep. Nancy Mace (R-S.C.), who brought the motion during a hearing.
The top Oversight Democrat, Rep. Robert Garcia of California, accused Bondi of “trying to get out of her legal obligation to testify” in a statement Wednesday.
“She must come in to testify immediately, and if she defies the subpoena, we will begin contempt charges in the Congress,” Garcia said. “The survivors deserve justice.”
The subpoena cover letter from Comer stated the then-attorney general was to appear on April 14. Customarily, subpoenas include a placeholder date and then attorneys negotiate a mutually agreeable schedule.
Todd Blanche, Bondi’s onetime deputy, is now acting attorney general. Blanche has also played an integral role in the Justice Department’s response to the Epstein case and interviewed his only convicted co-conspirator, Ghislaine Maxwell, in Tallahassee, Florida, in July.
In a statement on X last week, Bondi said she would work over the next month to transition her role to Blanche and then move “to an important private sector role I am thrilled about, and where I will continue fighting for President Trump and this Administration.”
Oversight Democrats argue that despite her departure from the Justice Department, Bondi must still answer lawmakers’ questions. A committee spokesperson said last week that Comer would confer with his Republican members and the Justice Department about next steps.
The committee has transcribed interviews scheduled for the coming months with Commerce Secretary Howard Lutnick, tech mogul Bill Gates and other figures who interacted with Epstein.
Congress
Congress is absent as Trump threatens Iranians ‘will die’
As President Donald Trump threatened death to the “whole civilization” of Iran in a social media post early Tuesday, Rep. Eli Crane was outraged.
“No sane person can think this is okay,” the Arizona Republican wrote on X, an hour after Trump’s message.
But Crane wasn’t talking about the possible eradication of an entire people by a U.S. president. He was talking about a report that women from Turkey flew to Long Island to give birth and sign up for Medicaid.
Crane was among dozens of lawmakers, Republican and Democrat, who published business-as-usual social media updates throughout the day Tuesday. Without acknowledging Trump’s stunning ultimatum, they shared partisan talking points, highlighted constituent meetings or celebrated local sports teams.
Because neither chamber has convened for a full session since March 27, Trump has been free to further push the bounds of GOP loyalty without fear of concentrated pushback — or at least the risk of Republican lawmakers getting asked uncomfortable questions in the Capitol halls.
While many have become practiced at deflecting queries about Trump’s jaw-dropping utterances, most appeared to conclude that the wisest reaction to the presidential threat to eradicate 90 million Iranians was to ignore it altogether.
Instead, it was just another Tuesday as Sen. Jerry Moran (R-Kansas) celebrated the Artemis II mission and a home-state visit from NASA’s administrator, Rep, Mario Diaz-Balart (R-Fla.) touted a $5 million federal law enforcement grant, Rep. Mike Lawler (R-N.Y.) posted about his day at the annual White House Easter egg roll, and Sen. Chuck Grassley (R-Iowa) took note of the frosty April weather back home.
A spokesperson for Speaker Mike Johnson declined to comment — though the Louisiana Republican posted about an Uber Eats driver whose “accountant was shocked by how much more money he is keeping thanks to No Tax on Tips.”
The speaker has given no indication he plans to call members back early from recess, which is due to end April 14.
A spokesperson for Senate Majority Whip John Barrasso also declined to comment, and spokespeople for Senate Majority Leader John Thune, House Majority Leader Steve Scalise and House Majority Whip Tom Emmer did not respond to requests for comment.
While many Democrats kept posting as though it was just another Tuesday — Rep. Debbie Wasserman Schultz paid tribute to “the amazing women of Red Hat Society of South Florida” and Rep. Frank Pallone posted in praise of the Jersey Shore — top party leaders erupted in outrage.
“This is an extremely sick person,” Senate Minority Leader Chuck Schumer quickly posted, while House Democratic leaders called in a joint statement for the House to return “immediately and vote to end this reckless war of choice in the Middle East before Donald Trump plunges our country into World War III.”
“It’s time for House Republicans to put patriotic duty over party loyalty and join Democrats in stopping this madness,” they continued.
In a separate joint statement with Schumer, the ranking members of the Senate Armed Services and Foreign Relations committees called Trump’s threats a “war crime.”
“We speak today with one voice and one purpose: to condemn President Trump’s threat to extinguish an entire civilization,” they added.
Some rank-and-file congressional Democrats went even further, with Rep. Lateefah Simon of California announcing articles of impeachment against Trump.
Democratic Reps. Sarah McBride of Delaware and Rashida Tlaib of Michigan — as well as former Republican Rep. Marjorie Taylor Greene, once one of Trump’s staunchest allies — were among those calling for the president to be deemed unfit for office and temporarily removed from his post under the 25th Amendment.
One House Republican aired misgivings about Trump’s ultimatum Tuesday afternoon.
“I do not support the destruction of a ‘whole civilization,’” Rep. Nathaniel Moran (R-Texas) wrote on X. “That is not who we are, and it is not consistent with the principles that have long guided America.”
But most Republicans are instead betting — or fervently hoping — that there will be some breakthrough before Trump’s 8 p.m. deadline, offering an off-ramp short of military annihilation. The threat several Democrats called “unhinged,” these Republicans believe, is just another unorthodox bargaining method.
“It is him negotiating Trump style,” Rep. Don Bacon (R-Neb.) said in a text. “It is reckless words. But, I do want to see the regime buckle and make a true peace. I want to see the Persian civilization flourish but it cannot under the Ayatollahs’ yoke.”
Speaking Tuesday morning, Trump gave no indication he would be backing down. Fox News host Bret Baier, quoting a private conversation with Trump, said, “8 p.m. is happening.”
“If we get to that point,” Trump told Baier. “There is going to be an attack like they have not seen.”
At least one Republican said he is interpreting Trump literally.
“Thank God we have a commander-in-chief that is not full of empty rhetoric because we’ve delayed this inevitability for 50 years,” Rep. Jodey Arrington of Texas said on Fox News Tuesday morning.
The No. 3 Senate Republican, Tom Cotton of Arkansas, mentioned Iran in an X post celebrating the rescue of a downed Air Force officer but did not mention Trump’s dire threat.
“This weekend, the United States military once again showed the world what it is capable of,” Cotton said. “I commend our brave troops for completing this dangerous and heroic rescue mission.”
But a Senate GOP account run by Cotton’s team responded more directly: “Iran would be wise to take President Trump at his word.”
“They can choose the easy way or the hard way,” the account said.
Jordain Carney, Cheyanne Daniels and Mia McCarthy contributed to this report.
-
The Dictatorship1 year agoLuigi Mangione acknowledges public support in first official statement since arrest
-
Politics1 year agoFormer ‘Squad’ members launching ‘Bowman and Bush’ YouTube show
-
Politics1 year agoFormer Kentucky AG Daniel Cameron launches Senate bid
-
The Dictatorship1 year agoPete Hegseth’s tenure at the Pentagon goes from bad to worse
-
Politics1 year agoBlue Light News’s Editorial Director Ryan Hutchins speaks at Blue Light News’s 2025 Governors Summit
-
The Dictatorship7 months agoMike Johnson sums up the GOP’s arrogant position on military occupation with two words
-
Uncategorized1 year ago
Bob Good to step down as Freedom Caucus chair this week
-
Politics12 months agoDemocrat challenging Joni Ernst: I want to ‘tear down’ party, ‘build it back up’








