Congress
House Republicans wanted the Senate to fix their megabill. They ‘miscalculated.’
It was the exact opposite of what nearly everyone on Capitol Hill expected.
Rather than soften its edges, Senate Republicans took the sprawling Republican megabill the House sent them and sharpened it further, making the heart of President Donald Trump’s legislative agenda more politically explosive.
GOP senators made steeper cuts to Medicaid, hastened cuts to wind and solar energy tax credits and also managed to add hundreds of billions of dollars more to the deficit compared to the House plan.
Usually, it’s far-right conservatives in the House proposing politically precarious policies, leaving the careful moderates in the Senate — the “cooling saucer,” according to the old Hill cliche — to dial them back.
This time, Senate Republicans were dead-set on making an expensive suite of pro-growth business tax cuts permanent. That required finding deep offsetting cuts, and the cold, hard calculus by the Senate GOP’s chief architects was that enough of their 53-member conference would ultimately swallow their protests and go along.
That bet paid off Tuesday with a 51-50 nail-biter vote. But now GOP senators are having to do some explaining to House Republicans who are already balking at the remodeled bill — particularly moderates who were counting on senators to water down the Medicaid and clean-energy provisions.
Sen. Kevin Cramer (R-N.D.) said House members who thought the Senate would walk back some of its changes had “miscalculated.”
“We are a more conservative body,” Cramer said in an interview, adding that there are moderates in the House who “cringe at the sound of any word that starts with ‘Medi.’”
As for conservatives who are cringing at the higher deficits created by the Senate bill, they’re not finding much sympathy among their Senate counterparts, who ended up embracing a controversial accounting tactic that effectively zeros out the cost of extending expiring tax cuts.
“We actually make the business provisions permanent, right? That’s the main difference,” Sen. Ron Johnson (R-Wis.) said in an interview Monday about complaints by the House Freedom Caucus that the bill would add $651 billion to the deficit. Johnson was among a group of Senate fiscal hawks who railed against the legislation for months, then fell in line for the final vote Tuesday, just like their colleagues anticipated.
No permanence enemies
In the end, the fiscal impact of the bill grew in two directions: Despite Senate leaders’ vow to find more spending cuts, their bill might well have increased spending on net as a result of negotiations with holdouts who successfully pushed for increased funding for rural hospitals and carve-outs on safety-net program cutbacks.
“The bill includes over $500 billion in new spending, and at the end to get the vote of the Alaska senator, billions and billions more were added,” said Sen. Rand Paul of Kentucky, one of the three Republicans who voted against the bill Tuesday.
House members, he added, are “going to look at it and see that it’s much less conservative than it started out to be and it’s going to add much more to the debt.”
Strict Senate budget rules also meant that some House spending cuts had to be scaled back or dropped altogether, so senators had to dig deep to find offsets elsewhere — especially given the $466 billion cost of adding the permanent business tax cuts to the bill versus just extending them through 2029, as the House did.
Yet there was no serious discussion about leaving those tax cuts behind. Majority Leader John Thune, Senate Finance Chair Mike Crapo and other tax-writing Republicans considered it their top priority. Thune called it a red line for many of his members, and it was one that ultimately influenced some of the Senate’s most politically fraught decisions.

In an interview after the bill’s passage, Thune acknowledged that the decision to make the business tax cuts permanent impacted the savings and overall strategy for the bill.“We really believed that permanence was the key to economic growth because it creates certainty,” he said. “All the models that we saw showed that you got more growth with permanence.”
To compensate, Finance Committee Republicans significantly dialed back some of Trump’s marquee campaign promises to enact tax relief for tipped wages and overtime work. Many of those senators privately scoffed that the populist tax policies were not particularly pro-growth, as opposed to the write-offs for business equipment and research and development expenses.
Even more explosive, however, is how they chose to wring additional savings out of Medicaid. The joint federal-state health program had already emerged as a political hornet’s nest in the House, where members balked at various proposals that would turn off the federal money spigot and force states to kick residents off their health plans.
Eventually the House landed on a compromise proposal of capping medical provider taxes, a popular financing mechanism for state Medicaid programs. Many Republicans objected, but it beat several alternatives, such as explicitly reducing the federal cost share formula for Medicaid enrollees.
Medicaid backlash
Many Republican senators prepared to make their peace with the proposal, including Sen. Josh Hawley of Missouri, who said in a Monday interview that he was privately prepared to accept the House’s provider tax cap with minor tweaks after a hospital association in his state formally blessed it.
But before Hawley could announce his support, the Senate Finance Committee released a draft that discarded the freeze and instead drastically scaled down the tax. Instead of waving a white flag, Hawley went on the warpath, urging Thune to drop the Senate proposal and backchanneling with House leadership to undermine it.
Hawley, who described himself as “stunned” by the Senate’s provider tax language, said he never got an explanation for why leadership went down that route. In the interview, he held up and rubbed his fingers together — indicating that he believed they were looking for money.
“I think it’s a matter of our mark, the Senate mark, made a lot more of the business tax cuts permanent,” he said.
While leadership was ultimately able to get Hawley on board — he won approval for a radiation victims compensation fund he’s championed and other smaller goodies — the decision to go deeper on Medicaid lost Republicans two key senators during the final vote on Tuesday afternoon — Maine’s Susan Collins and North Carolina’s Thom Tillis.

Both purple-state senators urged the Senate to revert to the House Medicaid language. Tillis privately warned leaders the Senate proposal would devastate his state and cost him reelection. Days later, he announced he would not run again and publicly torched the bill, saying it would “betray the promise Donald Trump made.”
The Senate’s Medicaid swerve has also put Speaker Mike Johnson in a bind. When he was locking down support for the House to pass its version of the bill, he privately reassured his members that the Senate would soften his chamber’s Medicaid cuts. Over the past week, he continued to reiterate to them that the Senate would end up closer to what the House passed. Now, he has to explain to increasingly frustrated House moderates why that didn’t happen.
But even as House Republicans were publicly banking on the Senate to soften the Medicaid cuts, Senate Republicans were pushing to go further. During an early June Finance Committee meeting with Trump at the White House, Sen. John Barrasso of Wyoming described to the president how the provider tax amounted to “money laundering” and would constitute cracking down on fraud, according to a person granted anonymity to disclose private discussions.
The parliamentarian and the billionaire
Other unpredictable events forced Senate Republicans to lose out on hundreds of billions of dollars in savings. After lengthy debates between Republican and Democratic staff in June, Senate Parliamentarian Elizabeth MacDonough advised that upward of $200 billion in House offsets would have to be left out of the bill because they didn’t comply with Senate budget rules.
House Republicans had also banked on $116 billion in revenue from retaliatory taxes aimed at dissuading foreign countries from implementing digital levies and a global minimum tax that the GOP detests. Shortly after the Senate included the proposal in its text — and a freakout by analysts on Wall Street — Treasury Secretary Scott Bessent announced a deal with G7 countries on the global tax and asked for the retaliatory taxes to be removed.
Other changes, like sharp cuts to certain clean-energy tax credits, seemed spurred more by politics than fiscal considerations. After the megabill passed the House in May, far-right influencers and lawmakers got increasingly vocal about what they perceived as deeply unfair subsidies to green industries.
Trump began calling Thune to urge him to take an axe to wind and solar energy incentives that had been enacted by former President Joe Biden, even after softened language backed by Senate moderates was inserted into the Finance Committee text. Trump told the same to Senate conservatives, many of whom had been swayed by fossil-fuel advocate Alex Epstein. They invited Epstein to address a Senate lunch in June to win over skeptical colleagues.

Even a late intervention from the world’s richest man couldn’t move the needle. Elon Musk publicly lashed out at Republicans for scaling back the tax credits, including making a public appeal to Speaker Mike Johnson to keep them online. He also personally approached Thune in recent days as the Senate debated the bill. Thune declined to comment on the conversation, but afterward Musk continued attacking the bill, arguing that it would hurt America’s ability to compete with China.
Senate holdouts did manage to clinch the removal of a controversial tax on solar and wind energy projects in 11th-hour negotiations, as well as a carve-out from the phaseouts for projects that start construction immediately. But the harsh language pushed by Epstein, which required most other wind and solar projects to be placed in service by the end of 2027 to qualify for the incentives, stayed in the final Senate product.
Tillis, liberated of political niceties after announcing his retirement, railed against the clean-energy changes on the Senate floor on Sunday, arguing that they would gut power projects that are already being developed.
Taking aim at Epstein, Tillis chalked up the changes to “people who have never worked a day in this industry, maybe philosophized and written a few white papers on it, but haven’t gotten their hands dirty.”
Ben Jacobs contributed to this report.
Congress
Nancy Pelosi and other Democrats call on Swalwell to end governor campaign
Former Speaker Nancy Pelosi headlined a growing list of Democratic lawmakers who called Friday on Rep. Eric Swalwell to withdraw his campaign for California governor amid allegations of sexual misconduct.
“This extremely sensitive matter must be appropriately investigated with full transparency and accountability,” Pelosi said in a statement. “As I discussed with Congressman Swalwell, it is clear that is best done outside of a gubernatorial campaign.
The San Francisco Chronicle reported Friday that a former congressional aide accused the congressman of two sexual encounters without her consent, beginning in 2019. BLN later reported that four women allege that Swalwell has committed sexual misconduct, including one former staffer who accuses Swalwell of rape.
Swalwell denied the allegations in a statement.
“These allegations are false and come on the eve of an election against the frontrunner for governor,” he said. “I will defend myself with the facts and where necessary bring legal action.”
Key backers of Swalwell’s governor bid swiftly revoked their support after the Chronicle’s story was published, including Reps. Jimmy Gomez (D-Calif.) and Adam Gray (D-Calif.), who served as campaign co-chairs.
“Today’s reports about Eric Swalwell’s conduct while in office are deeply disturbing,” Gray said in a statement. “Harassment, abuse, and violence of any sort are unacceptable. Given these serious allegations, I am withdrawing my support and Eric Swalwell should end his campaign immediately.”
But nothing underscored the peril for Swalwell’s nearly two-decade political career as vividly as Pelosi’s statement. The former speaker included Swalwell in her inner circle of favored Democratic members for years, tapping him for junior leadership roles and to serve as a manager in Donald Trump’s second impeachment trial in 2021.
The situation also presents a predicament for the sitting House Democratic leaders, who have insisted on letting a full Ethics Committee investigation play out before supporting formal discipline against another House Democrat accused of misconduct, Rep. Sheila Cherfilus-McCormick (D-Fla.).
A spokesperson for Minority Leader Hakeem Jeffries called the allegations “serious” and said they require “a serious and thorough investigation.”
“These brave women must be heard and respected,” the spokesperson, Christie Stephenson, said in a statement. “It is imperative that the inquiry follow the facts, apply the law and take place immediately.”
House Republicans already began discussing Friday evening the likely scenario that one of their own members will bring a censure effort against Swalwell, according to three people granted anonymity to describe private conversations.
Rep. Anna Paulina Luna (R-Fla.) said in an interview that she was weighing a censure and other action against Swalwell based on the reports of sexual assault allegations against him.
Luna said she would act “if there is evidence brought forward.”
The internal consequences could start playing out as soon as the House returns to session Tuesday, but a wave of top California Democrats immediately dropped their endorsements of Swalwell, including Rep. Ted Lieu, the No. 4 Democrat in House leadership.
Rep. Ro Khanna (D-Calif.) likened the situation to his push for transparency around disgraced financier Jeffrey Epstein and called for “appropriate” House and law enforcement investigations.
“No one in a position of power should be allowed to act above the law or with impunity,” he said in a statement. “It doesn’t matter what office you hold, how wealthy you are, or which political party you align with. The same rules must apply to Eric Swalwell.”
Meredith Lee Hill and Hailey Fuchs contributed to this report.
Congress
Trump endorses ‘focused’ immigration enforcement funding bill
President Donald Trump gave his blessing Friday afternoon for a party-line package focused narrowly on immigration enforcement — in a boost to Senate GOP leaders amid the Department of Homeland Security funding stalemate.
Trump’s comments came after he met Friday with Senate Budget Chair Lindsey Graham of South Carolina and Senate Majority Whip John Barrasso of Wyoming. The two lawmakers went to the White House to pitch Senate GOP leadership’s plan to restrict the party’s filibuster-skirting effort to only funding for Immigration and Customs Enforcement and parts of Customs and Border Protection.
“Reconciliation is ON TRACK, and we are moving FAST and FOCUSED in keeping our Border SECURE, and getting funding to the Department of Homeland Security and the Justice Department to continue our incredible SUCCESS at MAKING AMERICA SAFE AGAIN!” Trump wrote on Truth Social.
Trump had previously backed using reconciliation to pass funding for immigration enforcement after it became clear Democrats would not agree to reopen those shuttered operations within DHS without a deal for more guardrails on ICE and CBP. But the president’s post Friday, which hammered home the preference for focusing the bill on this issue, is a significant boost to GOP leaders as they face calls from some of their members to broaden the scope of any reconciliation measure.
Some Republicans have called for funding all of DHS through reconciliation. The Senate previously passed a bipartisan deal that would reopen the department except for ICE and Border Patrol, but it has stalled in the House as hard-liners demand the Senate first pass the immigration enforcement funding.
Graham, whom Trump also re-endorsed Friday, is responsible for crafting the budget resolution that will allow the party to begin the reconciliation process — its second time using this maneuver in addition to last year’s tax and spending megabill. He is expected to tap the Judiciary Committee and the Homeland Security and Governmental Affairs panel to draft the immigration enforcement measure.
Senate Republicansare expected to not include pay-fors for the funding, arguing that it would have gone through the appropriations process were it not for opposition from Democrats. They’ll need sign-off from their own conservatives and the right-flank in the House for such a plan.
Trump also reiterated Friday that he wants the bill on his desk by June 1, adding that Republicans won’t need Democrats’ votes “as long as Republicans UNIFY, and stick together.”
The White House did not immediately respond to a request for comment.
Myah Ward contributed to this report.
Congress
These Republican-on-Republican disputes are keeping Congress frozen
Republican infighting is leaving Congress in legislative limbo.
While there are plenty of partisan disputes that have frustrated Capitol Hill — such as the nearly two-month shutdown of the Department of Homeland Security — divisions between House and Senate Republicans have been the more significant obstacle for a laundry list of stalled legislation that could otherwise sail to President Donald Trump’s desk.
Trump could intervene to settle many of these disputes, but he has kept his distance in most cases. That has left each chamber pushing ahead with their own proposals — and against their counterparts in the other chamber.
In the one instance where the president appears truly invested, in passage of a sweeping GOP elections bill, his fixation has only made the intraparty divisions worse.
Lawmakers will return to Washington next week with the pre-midterm legislative calendar dwindling and leaders eyeing action on at least one party-line budget reconciliation bill — a time-consuming process that could make it even tougher to find consensus on these pending items:
Housing affordability
With cost-of-living concerns dominating the pre-midterm political landscape, a bipartisan effort to address housing prices should be a no-brainer, but disputes over niche policy provisions are holding up dueling House and Senate housing packages.
The Senate passed a bill last month that includes a temporary ban on central bank digital currency as well as a provision restricting large investors from owning more than 350 homes. Both provisions face serious opposition from House Republicans, who joined with Democrats in their chamber to pass their own bill in February.
While the Senate wants the House to accept its version, House Financial Services Chair French Hill (R-Ark.) and others in the GOP are pushing for the two chambers to go to conference — potentially adding months to the process.
Aviation safety
Legislation aiming to respond to the deadly crash near Ronald Reagan Washington National Airport last year is stuck in a battle of wills among GOP committee chairs. A bill backed by Senate Commerce Chair Ted Cruz (R-Texas) appeared set for Trump’s desk earlier this year until the heads of two key House committees, Armed Services Chair Mike Rogers (R-Ala.) and Transportation and Infrastructure Chair Sam Graves (R-Mo.), came out against it, causing the measure to fail on the House floor.
The Senate bill’s requirement for advanced aircraft location-alerting technology has been one of the biggest points of contention among Republicans, with the House version of the bill opting for more open-ended language. The House bill focuses on a different technology, which major aviation labor groups argue wouldn’t have prevented the Washington disaster.
Cruz has called the House rejection of his ROTOR Act a “temporary delay,” but the House chairs are pushing forward with their own ALERT Act, with a floor vote expected Tuesday. How the policy disputes will be settled from there remains uncertain.
College sports
Trump has taken a keen interest in college athletics, issuing a flurry of executive orders on this topic. But Congress has struggled to act on legislation tackling the controversial “name, image and likeness” regime for compensating student athletes
House Republicans last year made a push for the SCORE Act, which would create new standards for how college athletes are paid and give antitrust exemptions, before opposition from hard-liners and many Democrats put it on ice.
While there has been new chatter about putting it on the floor this month, the bill is dead on arrival in the Senate, where Cruz and Sen. Maria Cantwell (D-Wash.), the top Commerce Committee senators, have warned the measure doesn’t have enough support. The two are discussing ways to address NIL concerns but have yet to produce a bill.
Tech regulation
The House and Senate have failed to reach consensus on a number of tech-industry flashpoints, including artificial intelligence and children’s online safety.
The House GOP largely wants to codify a Trump executive order creating a national AI rulebook, but some Senate Republicans appear concerned that the president’s plan could limit state-level regulations the White House wants to override.
There’s a similar standoff over online safety bills. The Senate cleared a privacy bill by unanimous consent, but the House hasn’t taken it up and instead is pushing ahead with a package that doesn’t include key Senate-passed provisions.
One of the key differences is on state preemption — included in the House version but not the Senate version. Another dispute is over “duty of care” language in the Senate bill that requires tech companies to design their platforms with an eye toward preventing harm to children. Senate Majority Leader John Thune floated pairing AI legislation with kids online safety legislation in an interview earlier this year.
And then there’s cryptocurrency: A closely watched “market structure” bill is stuck for now in the Senate after it was excluded from a landmark crypto bill signed into law last year despite a push in the House.
The Trump administration is increasing pressure, with Treasury Secretary Scott Bessent saying Thursday that “Senate time is precious, and now is the time to act.”
Elections oversight
Conservative lawmakers and Trump have joined forces behind the SAVE America Act — a GOP bill aimed at fully eliminating noncitizen voting — as a top-level, must-pass agenda item even as many Senate Republicans doubt it can ever skirt their chamber’s 60-vote filibuster threshold.
Trump views the bill as his “No. 1 priority,” and House hard-liners are pushing for a filibuster workaround. Sen. Mike Lee (R-Utah) has pushed to force Democrats into a “talking filibuster” where they would have to hold the floor to block the bill, and the Senate will resume debate early next week with no indication of when GOP leaders will choose to hold a likely doomed vote and move on.
Some Republicans, including Senate Budget Chair Lindsey Graham of South Carolina, want to try to pass parts of the bill through the reconciliation process later this fall. But hard-liners view that as a nonstarter because most of the bill likely violates the strict Senate rules governing the party-line reconciliation process.
DHS funding
There’s no bigger dispute for House and Senate Republicans to settle than DHS funding, which has already been subject to nearly a month of back-and-forth.
A Senate-passed bill delivering funding for all of the department save for immigration enforcement agencies is currently held up in the House. Republicans there aren’t enthused about a plan that would instead fund ICE and other agencies through the reconciliation process — an idea Speaker Mike Johnson called “garbage” before flipping in support.
Now, many House Republicans want their Senate counterparts to pass immigration enforcement funding before the House passes the balance of DHS spending. The hard-line Freedom Caucus has gone further, demanding GOP leaders fund all of DHS through reconciliation.
As party leaders make plans to pass a narrowly targeted reconciliation bill ahead of a Trump-imposed June 1 deadline, most Senate Republicans want the House to fund most of DHS now — or risk prolonging the infighting that even one GOP senator called a “circular firing squad.”
Katherine Hapgood, Gabby Miller, Alfred Ng, Nick Niedzwiadek and Sam Ogozalek contributed to this report.
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