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Paulson withdraws from Treasury secretary contention

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John Paulson, the billionaire financier, said Tuesday he was withdrawing his name from contention to be President-elect Donald Trump’s next Treasury secretary.

“Although various media outlets have mentioned me as a candidate for Secretary of the Treasury, my complex financial obligations would prevent me from holding an official position in President Trump’s administration at this time,” Paulson said in a statement.

The veteran investor and close Trump ally said he planned to “remain actively involved with the President’s economic team and helping in the implementation of President Trump’s outstanding policy proposals.”

The statement was earlier reported by The Wall Street Journal.

Paulson was among several major Wall Street figures that Trump has been weighing for Treasury, including billionaire investor Scott Bessent, who has been serving as a key economic adviser to Trump.

Paulson, a hedge fund manager who famously made billions of dollars betting on the housing market collapse before the 2008 financial crisis, was an early Wall Street supporter of Trump back in 2016.

In his statement Tuesday, Paulson said he was “ecstatic that President Trump will be back in office.” Trump “is off to a fast start with his appointments, and his policies will have an immensely positive impact on all Americans,” he said.

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Congress

Amendment targeting Medicaid expansion won’t get a Senate vote

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Senate conservatives are dropping their push for a vote on scaling back a key Medicaid funding mechanism, according to three people granted anonymity to discuss private deliberations.

Sen. Rick Scott (R-Fla.) and allies were expected to get a vote on an amendment to scale back the federal share of Medicaid costs for those enrolled under the Affordable Care Act’s expansion of Medicaid starting in 2031. Senate leadership backed the proposal and were expected to help build support for it as part of a deal cut earlier this week to start debate on President Donald Trump’s domestic policy bill.

But Republicans were wary of enacting such a deep cut despite other provisions in the megabill that would decrease Medicaid funding by nearly $800 billion. Several GOP senators warned Monday they did not support making changes to the federal march for Medicaid enrollees.

A spokesperson for Scott did not immediately respond to a request for comment.

While the amendment is being withdrawn, Scott’s fight highlights how far Republicans have been willing to go to curb the Medicaid expansion, a cornerstone of the Affordable Care Act. Republicans argue the expansion enables able-bodied adults to get coverage at the expense of beneficiaries with disabilities and the elderly.

The federal government traditionally covers half of all Medicaid costs and the state picks up the rest. But the federal government covers 90 percent of costs for expansion enrollees. Under Scott’s proposal, that extra funding would shrink down to 50 percent after 2030. Anyone who was enrolled prior to that date would be grandfathered at the 90 percent payment rate.

While Trump himself has said he does not want to cut Medicaid benefits, an estimated 11.8 million people are expected to lose coverage if the megabill becomes law by 2034, according to estimates from the nonpartisan Congressional Budget Office. The number would likely balloon if Scott’s amendment passed.

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Cornyn gets a big fundraising boost in Texas Senate primary against Paxton

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John Cornyn is not going down without a fight.

After months of polls showing the four-term Texas senator trailing in the Republican primary, a pro-Cornyn super PAC raised almost $11 million in the most recent fundraising period.

Texans for a Conservative Majority, the outside group supporting Cornyn in his primary challenge from Texas Attorney General Ken Paxton, will have over $12 million cash on hand after the current fundraising quarter. The group has raised over $10.9 million in the quarter after Paxton announced his primary challenge against Cornyn.

Cornyn has been consistently trailing polls in the Senate primary against Paxton, whose indictment and impeachment over corruption and bribery charges left him well regarded by conservative grassroots activists loyal to Donald Trump but viewed skeptically by Republican operatives worried about his reception among swing voters in a midterm election.

“This first report shows what the armchair pundits fail to realize — this race is only beginning in earnest,” Aaron Whitehead, the executive director of the outside pro-Cornyn group, told Blue Light News. “With eight months to go before the March primary, Texans for a Conservative Majority is well positioned to take the fight to Ken Paxton and independently support Senator John Cornyn’s re-election.”

Texas’ primary will be held on March 3, 2026.

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Capitol agenda: Murkowski slams brakes on megabill

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Senate Majority Leader John Thune’s ability to pass the “big, beautiful bill” is hinging on Sen. Lisa Murkowski.

The Alaska senator has been the subject of an intense whip effort by GOP leaders over the past couple of hours as they try to offer her reassurances on Medicaid and food assistance. Thune, Finance Chair Mike Crapo (R-Idaho) and Senate Majority Whip John Barrasso talked to Murkowski on the floor for roughly an hour overnight. Thune and Murkowski huddled briefly in his office, and they were mum on details when they emerged shortly before 4 a.m.

Just moments ago, the Senate parliamentarian ruled that proposed SNAP carve-outs for Alaska and other states are compliant with the Byrd rule. But Republicans have struggled to get approval for a Medicaid provision also aimed at Murkowski’s home state.

Murkowski is also among the Republicans who have been pushing an amendment to undo the rollback of clean-energy credits under the Biden-era climate law.

Thune insisted to reporters moments ago that senators were closing in on the end of their vote-a-rama.

“We’re close,” he said, adding that they have a few more amendments from senators and a final so-called wraparound amendment to come.

In a potential sign of just how dire Thune’s whip count was looking in the wee hours, the majority leader huddled in his office with Sen. Rand Paul (R-Ky.), who’s long said he would be a “no” on the bill over its debt-ceiling hike.

Another big unknown right now is where Sen. Susan Collins will fall. The Maine senator reminded us less than two hours ago that she’s “said all along that I have concerns with the bill” and also reiterated, when prompted by reporters, that she would have preferred breaking out the tax portion of the policy package on a separate track. Certainly not helping win Collins over: Her bid to boost money for rural hospitals went up in flames.

And major policy fights remain unresolved, including Sen. Rick Scott’s (R-Fla.) divisive amendment to scale back federal payments under the Affordable Care Act’s Medicaid expansion. Scott has leadership’s support on this one and said he expects it to pass. But several GOP senators have openly raised concerns with it.

What else we’re watching:

— Megabill goes to House Rules: Assuming the Senate passes the bill, the House is expected to bring the bill to the Rules Committee at noon on Tuesday, though two people with direct knowledge of the plans say it could get pushed amid delays with the Senate vote-a-rama.

— The next funding battle begins: Senate appropriators plan to move forward with marking up fiscal 2026 government funding bills starting next week. House Appropriations is scheduled to vote July 10 on the Commerce, Justice, Science bill and the Energy and Water Development bill. House Appropriations Chair Tom Cole (R-Okla.) wants to finish marking up all 12 funding bills by the end of July.

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