Congress
Republicans move forward with controversial megabill accounting move
Senate Republicans are on the cusp of formally adopting a controversial accounting tactic to zero out much of the cost of their massive domestic policy bill.
The matter came to a head on the Senate floor Sunday afternoon, when Democrats sought to prevent the use of the current policy baseline, as the tactic is known. Minority Leader Chuck Schumer objected to the maneuver and accused Republicans of setting a new precedent with the “budgetary gimmick.”
The Senate is set to vote on Schumer’s objection later Sunday or Monday, but Republicans believe their members will back up Senate Majority Leader John Thune and Senate Budget Chair Lindsey Graham.
That’s in part because they were able to sidestep a situation where senators would be asked to overrule Parliamentarian Elizabeth MacDonough on the baseline question. Instead, Republicans are asserting that Graham (R-S.C.) has the ability to establish which baseline is used under the 1974 law governing the budget process, rather than having MacDonough issue a formal ruling.
“There is nothing to debate and we consider this matter settled,” Graham spokesperson Taylor Reidy said.
The revised baseline allows Republicans to essentially write off the $3.8 trillion cost of extending tax cuts passed in 2017 that are set to expire at the end of the year. The effect on the megabill’s bottom line is profound as a pair of new Congressional Budget Office reports show.
One, released late Saturday night using the current policy baseline, showed the legislation would reduce the deficit by $508 billion. The other, released Sunday morning using the traditional method accounting for expiring provisions, showed the megabill would increase the deficit by $3.25 trillion.
“Things have never, never worked this way where one party so egregiously ignores precedent, process and the parliamentarian, and does that all in order to wipe away trillions of dollars in costs,” Sen. Patty Murray (D-Wash.) said during a speech on the Senate floor Sunday.
The maneuver came as little surprise. The GOP plan has been quietly in the works for months, and Thune had suggested they would reprise the no-formal-ruling strategy they’d used earlier in the process of passing the megabill.
“As we did on the budget resolution, we believe the law is clear that the budget committee chairman can determine the baseline we use,” Thune told reporters. Graham on Sunday embraced the CBO ruling showing the deficit savings — and his own authority to make the accounting change: “I’ve decided to use current policy when it comes to cutting taxes,” he said. “If you use current policy, they never expire.”
The baseline change is crucial for Senate Republicans because under the budget blueprint they adopted earlier this year, the Finance Committee provisions in the bill can only increase the deficit by a maximum of $1.5 trillion. The bill now under consideration wouldn’t comply under the old accounting method.
Sen. Ron Wyden (D-Ore.), the top Finance Democrat, called it “budget math as fake as Donald Trump’s tan” and said the GOP amounted to a “nuclear” choice that would weaken the chamber’s 60-vote filibuster.
“We’re now operating in a world where the filibuster applies to Democrats but not to Republicans, and that’s simply unsustainable given the triage that’ll be required whenever the Trump era finally ends,” he said.
Congress
Housing bill threatened in GOP elections-bill spat
The long-anticipated bipartisan housing bill is under threat from a Florida Republican who threatened to “shut the floor down” if House GOP leaders move forward with passing it Tuesday.
Rep. Anna Paulina Luna said Republicans instead need to prioritize passage of the SAVE America Act, the GOP elections bill that has been stuck in the Senate for months. Speaker Mike Johnson has scheduled a Tuesday evening vote on the housing bill in hopes of sending it to President Donald Trump for a planned Wednesday signing at the White House.
Luna posted her threat on social media Tuesday afternoon and later specified in an interview that she would oppose procedural measures teeing up GOP-backed legislation going forward if party leaders didn’t abandon their plans to hold the housing bill vote via special fast-track procedures that would effectively sideline Republican hard-liners.
Luna cannot single-handedly block those procedural votes, but she said there is “a group” of lawmakers who would join her. She separately called on Trump to veto the housing bill in a bid to force the SAVE America Act to be added to it.
Johnson plans for now to proceed with the Tuesday evening vote on the housing bill, according to two people granted anonymity to discuss internal conversations. If Luna and her unnamed allies follow through with their threats, they could derail a pair of appropriations bills set for House consideration this week and potentially freeze the floor indefinitely given the GOP’s razor-thin majority.
“I have been telling them,” Luna said of her complaints to GOP leaders.
Congress
Top tech executives expected to testify at July 28 Senate hearing
The Senate Judiciary Committee is tentatively planning to have top tech executives testify at a July 28 hearing, according to five people with knowledge of the committee’s plans granted anonymity to discuss private negotiations.
Judiciary Committee Chair Chuck Grassley (R-Iowa) had previously summoned the CEOs of Meta, TikTok, Snapchat and Google to a hearing, originally scheduled for Tuesday, to discuss their online child safety practices, AI safety and other topics.
“Chairman Grassley looks forward to a productive hearing as he continues his bipartisan efforts to get lifesaving child safety legislation signed into law,” a spokesperson for Grassley told Blue Light News.
The hearing, which remains provisional, comes at a pivotal moment for the tech sector. Congress is actively debating legislation aimed at protecting children online, while courts and state attorneys general are intensifying pressure on social media companies over allegations that their platforms harm young users.
The list of tech executives the committee is eyeing to testify remains in flux but currently includes head of Instagram Adam Mosseri and YouTube CEO Neal Mohan, according to the five people. Three of the people said Snapchat CEO Evan Spiegel and CEO of TikTok’s U.S.-based joint venture company Adam Presser may also be called to attend.
The four companies did not immediately comment on the proposed hearing.
Congress
Capitol agenda: Jeffries gets preview of his future headaches
Trouble for Hakeem Jeffries is brewing close to home.
New Yorkers will decide Tuesday whether to support a slate of insurgent progressive candidates who are bullish about bucking the party establishment: Brad Lander, Darializa Avila Chevalier and Claire Valdez.
The Zohran Mamdani-backed trio are taking on incumbent, leadership allies: Reps. Dan Goldman, Congressional Hispanic Caucus Chair Adriano Espaillat as well as outgoing Rep. Nydia Velázquez, who endorsed a different successor.
The progressive challengers are positioning themselves as firebrands willing to play hardball to force the Democratic Caucus leftward. Take Chevalier, a Democratic Socialists of America member who told Vox last week that “all deportations are wrong” including for people who have been convicted of breaking U.S. law. Neither she nor Valdez have said if they would back Jeffries as speaker should Democrats take the majority.
In addition to presenting a long-term headache for a potential Jeffries speakership, progressive challenger wins would deliver an immediate blow to Jeffries’ credibility as a power broker in his own backyard. He endorsed Goldman and Espaillat.
As Senate Minority Leader Chuck Schumer weighs a 2028 reelection bid, he too will be paying close attention to the depth of lefty, anti-incumbent fervor among voters in his state.
Democratic leadership’s old guard will also be on watch Tuesday evening as Maryland decides who will replace former Majority Leader Steny Hoyer: his preferred successor Adrian Boafo or his old frenemy Nancy Pelosi’s pick of former Capitol Police officer Harry Dunn.
Democrats have been divided on the race from the jump, with Gov. Wes Moore and Sen. Angela Alsobrooks also backing Boafo. Fellow Marylander — and maybe 2028 presidential candidate — Sen. Chris Van Hollen got in on the action last month by knocking Boafo for taking AIPAC and crypto money.
And a PSA: The many, many self-funded campaign ads from warring Democratic millionaires Rep. April McClain Delaney and her predecessor David Trone – who is trying to win his seat back after losing a Senate bid in 2024 – will come to an end Tuesday night.
Republicans won’t escape the messy primary day.
In Utah, House GOP leadership member Rep. Blake Moore will attempt to beat challenger Karianne Lisonbee who is taking him to task for once opposing partisan gerrymandering. An AI proxy war is also playing out in Rep. Celeste Maloy’s district where former state Rep. Phil Lyman is attacking the congresswoman — who has received nearly $1 million from an Anthropic-funded super PAC — over data center construction.
Yet, at least one House Republican is pulling for a Democrat Tuesday evening.
Vulnerable GOP Rep. Mike Lawler has meddled in the Democratic primary to run against him. Jason Beeferman reports that Lawler has tried to tear down Army vet Cait Conley via a covert text blast, among other tactics, seeming to prefer that he get to run against her opponent Beth Davidson.
What else we’re watching:
— TRUMP TO GET SAVE AMERICA ACT REALITY CHECK IN SENATE: President Donald Trump was invited to Republican senators’ lunch Wednesday to push for his No. 1 priority, the GOP election bill known as the SAVE America Act. But several outgoing Republicans who have clashed with Trump said Monday they will be there to deliver a reality check: The bill isn’t passing, and it’s time to move on.
— SCHUMER FORCES IRAN WAR POWERS VOTE ON WARY GOP: Schumer Tuesday plans to force the Senate to vote on a House-passed Iran war powers resolution – putting on record Republicans who are publicly skeptical of Trump’s agreement last week to end the conflict. The measure won House approval earlier this month after four House Republicans joined Democrats to effectively halt military operations unless Congress authorizes it.
Jordain Carney contributed to this report.
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