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Provider tax crackdown is a no-go in the House, Hawley warns

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Sen. Josh Hawley is urging GOP leaders to strike Senate Finance Committee language altering a key Medicaid financing provision, warning he’s already hearing from House Republicans that it can’t clear their chamber.

“I don’t know why we would pass something that the House can’t pass and will force us into [a] conference,” the Missouri Republican said in an interview about the proposed crackdown on the state provider tax.

Hawley added that he and his fellow Senate GOP colleagues were also caught off guard by the Senate proposal — which would curtail the tax most states use to finance their Medicaid programs rather than simply freezing it, as the House did.

He summed up what he’s hearing from House Republicans: “We cannot pass this. We were not consulted.”

It’s the latest red flag for Senate Majority Leader John Thune as he tries to pass President Donald Trump’s “big, beautiful bill” next week, a necessary step if the House is going to have to advance it to the president’s desk by the GOP’s July 4 target. Thune wants the bill on the floor as soon as Wednesday.

“Unless you want to be here in August and September still doing this, I think that is a bad, bad plan,” Hawley said. “We don’t have time to reinvent the wheel.”

Hawley isn’t the only one raising concerns. House moderates are also starting to express opposition, and others within Speaker Mike Johnson’s circle described themselves to POLITICO as caught off guard.

But Hawley is offering one carrot to GOP leadership that could be critical as they try to hunt down the 50 votes they need to move forward: He said he is prepared to support the House provider tax freeze with the minor clarifications that hospital associations in 13 states, including his own, asked for last week in a letter first reported by POLITICO.

“I think that would be fine,” Hawley said, adding that rural hospitals in his state were “pretty satisfied” with the House language with some technical changes.

GOP leaders, including Senate Finance Chair Mike Crapo, have been hoping to sway Hawley and other holdouts with a proposed rural hospital fund, which they believe would offset the potential impact of the provider tax changes.

While Hawley said he was still open to including a new fund, it wouldn’t change his belief that the Senate provider tax language had to go. In addition to talking with House Republicans, Hawley said he’s delivered his message directly to Thune, who said in a brief interview Wednesday ahead of Hawley’s comments that he’s speaking to Trump on a near-daily basis and is expected to spend the weekend and into early next week negotiating with his holdouts.

“We’re talking to individual senators on an ongoing basis and hearing them out about things they want included or not included in the final draft,” Thune said.

Hawley has already spoken with Trump about the Senate language and has described the president as being “surprised” by the provider tax proposal.

Asked if he believed Trump and the White House should get involved to nudge Thune and Crapo, Hawley added that they were “stepping up their involvement.” He pointed to chief of staff Susie Wiles urging Congress to get the bill to Trump’s desk by July 4 as an example of them “trying to deliver it gently” but predicted it could become “more forceful.”

Asked about the Senate’s Medicaid language Thursday, White House spokesperson Karoline Leavitt declined to get into specifics, instead telling reporters that since “the bill hasn’t been sent to the president’s desk yet, there’s more room for change.”

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Congress

Senate slated to take first vote on megabill Saturday

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Senate Republicans are planning to take an initial vote at noon on Saturday to take up the megabill.

Leadership laid out the timeline during a closed-door lunch on Friday, Sen. John Kennedy (R-La.) and John Hoeven (R-N.D.) said after the lunch. A person granted anonymity to discuss internal scheduling confirmed the noon timeline but cautioned Republicans haven’t locked in the schedule yet.

During the lunch, Speaker Mike Johnson pitched Senate Republicans on the tentative SALT deal, according to three people in the room. He said the deal was as good as Republican can get, according to the people.

Johnson noted he still has “one holdout” — an apparent reference to New York Republican Nick LaLota, who said in a brief interview Friday that if there was a deal, he was not part of it.

Leaving the meeting, Johnson was asked by reporters whether he thought Senate Republicans would accept the SALT deal. “I believe they will,” he replied. “They’re going to digest the final calculations, but I think we’re very, very close to closing that issue.”

In the meeting, Treasury Secretary Scott Bessent and Johnson laid out details of the fragile agreement, telling Senate Republicans the House SALT deal would be cut in half, to total roughly $192 billion. They restated it would raise the SALT cap to $40,000 for five years under the current House-negotiated SALT deal, and snap back to the current $10,000 cap after that.

In related matters, Kennedy and Hoeven also said the Senate will keep its provider tax proposal but delay its implementation, which Republicans believe will help it comply with budget rules. and Johnson also told Senate Republicans that he wants to do another reconciliation bill — which senators took to mean they would get another opportunity to secure spending cuts or provisions passed that have been squeezed out of the megabill.

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Trump says July 4 is “not the end all”

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President Donald Trump on Friday backed off the July 4 deadline he set for Congress to pass his megabill, acknowledging that the timing could slip as Republicans work through a series of political and logistical hurdles.

“It’s not the end all,” Trump said of the self-imposed Independence Day goal. “It can go longer, but we’d like to get it done by that time if possible.”

The remarks represented a clear softening of the White House’s position from just a day earlier, when Trump administration officials insisted that the GOP lawmakers pass the domestic policy package within a week despite a series of fresh obstacles.

Senate Republican leaders are still struggling to lock down the necessary 51 votes for the bill, amid objections from competing factions over the depth of the legislation’s Medicaid cuts.

The effort has also been hamstrung by a flurry of adverse rulings by the Senate parliamentarian that are now forcing lawmakers to rewrite significant portions of the bill.

The president indicated that he has little interest as of now in trying to directly overrule or even fire the parliamentarian — a step that some close allies in Congress had called for after she disqualified several of the bill’s provisions.

“The parliamentarian’s been a little difficult,” Trump said. “I disagree with the parliamentarian on some things, and on other ways she’s been fine.”

White House press secretary Karoline Leavitt downplayed those issues on Thursday, saying Trump still expected Republicans to coalesce in the coming days and put the bill on his desk by July 4.

But asked directly on Friday, Trump took a more ambivalent stance.

“We have a lot of committed people and they feel strongly about a subject, subjects that you’re not even thinking about that are important to Republicans,” he said, appearing to reference the policy divisions within the Senate GOP conference.

Trump also singled out Sen. Ron Johnson (R-Wis.) for praise despite his resistance to the bill, complaining instead about the lack of Democratic votes.

“The problem we have is it’s a great bill, it’s a popular bill,” Trump said. “But we’ll get no Democrats.”

If all Republicans vote for the bill, it would not need Democrats’ support to pass.

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Muslim Democrats ask leaders to denounce Islamophobic attacks on Zohran Mamdani

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All four Muslim Democratic House members are denouncing “racist smears” against Zohran Mamdani from lawmakers in both parties since his New York City mayoral primary win, according to a statement provided first to Blue Light News.

“The vile, anti-Muslim and racist smears from our colleagues on both sides of the aisle attacking Zohran Mamdani cannot be met with silence. These hateful, Islamophobic, and racist tropes have become so entrenched and normalized in our politics,” said Reps. Andre Carson of Indiana, Rashida Tlaib of Michigan, Ilhan Omar of Minnesota and Lateefah Simon of California in a statement.

The lawmakers said that “at a time when we are facing increased violence against elected officials, we cannot allow the attacks on Zohran Mamdani to continue” and asked for elected leaders to speak out on them.

Mamdani, who would become New York’s first Muslim mayor, has faced attacks from GOP lawmakers after his primary win this week. Rep. Nancy Mace (R-S.C.) tied him to the 9/11 terrorist attacks and Rep. Andy Ogles (R-Tenn.) called for him to be deported, among others. The left was also concerned about since-clarified comments from Sen. Kirsten Gillibrand (D-N.Y.) about Mamdani’s rhetoric about Israel.

Critics of the democratic socialist have called some of his comments about Israel, including his defense of the phrase “globalize the intifada,” antisemitic, which he’s denied.

The Muslim lawmakers have sought a more forceful pushback from their leaders to the GOP attacks and have privately approached Democratic leadership about doing so. Speaker Mike Johnson didn’t answer a question from a reporter Friday asking him to respond to the remarks from Mace, Ogles and others.

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