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Senate GOP scrambles to rewrite Trump’s megabill

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Senate Republicans are scrambling to rewrite major parts of their “big, beautiful bill” in deference to key holdouts and the chamber’s parliamentarian as the clock ticks on a self-imposed deadline.

GOP leaders are aiming to start voting Thursday, but senators emerged from a closed-door briefing on the status of the megabill Monday night saying that some of their biggest sticking points — ranging from key tax decisions to a deal on Medicaid — remain unresolved.

The multitude of unresolved issues has left Republicans unsure when the bill will get to the Senate floor, even as leaders project confidence they are on track to pass it and send it back to the House this week — setting up final passage ahead of their July 4 target.

Most crucially, it could be Wednesday night or later before Senate Parliamentarian Elizabeth MacDonough finishes ruling on whether major tax provisions, including some measures at the very heart of the domestic policy bill, pass muster under the budget rules GOP lawmakers want to use to pass their bill on party lines.

“I think we’ll eventually pass something, I just can’t tell you when,” said Sen. John Kennedy (R-La.). “We’ve got a lot of stuff to work out, and the bill will be changed on the floor.”

Republicans had initially hoped to have a revised bill ready to be released Monday. Now they aren’t expected to release it while the parliamentarian’s review — the so-called “Byrd bath” — is pending, according to two people granted anonymity to discuss internal thinking.

Majority Leader John Thune (R-S.D.) said that he hoped to be able to hold an initial vote on Thursday, setting up passage over the weekend, but that “part of it right now is the Byrd bath, and it’s taking a little bit longer.”

It’s not just the procedural hoops senators have to jump through. Multiple substantive matters need to be settled, including a high-stakes dispute between the House and Senate GOP over a key tax break.

Sen. Markwayne Mullin (R-Okla.) briefed his colleagues on talks he’s brokering with House Republicans on raising the state-and-local-tax deduction cap, known as SALT. Mullin signaled afterward he thought they were getting close to “acceptance” on what the final proposal would entail.

A $40,000 cap negotiated by the House would not be touched, he suggested, but an income threshold where the deduction starts to phase out could be lowered. But that combination was publicly rejected by SALT-focused House members just days ago, and several GOP senators left the briefing under the impression that Mullin was only laying out potential options and did not have anything resolved.

Beyond the tax fight, Republicans are still working through thorny Medicaid issues. Thune told GOP senators during the closed-door meeting that the Senate would follow the House’s lead in one key respect — it would not change the share of Medicaid costs the federal government pays for those enrolled under the program’s 2010 expansion, according to Missouri Sen. Josh Hawley.

GOP leaders also discussed including a fund to help offset the impact to rural hospitals due to other Medicaid changes in the Senate bill. Blue Light News reported Monday that the fund is expected to be included in the bill, but Republicans say they have not yet gotten details on how it would work.

“I am absolutely happy with a rural fund; I think that would be great,” Hawley said. “Will that solve the issue? I don’t know.”

Senate Republicans included language in their bill to curtail provider taxes, which most states use to fund their Medicaid programs and garner larger federal reimbursements. House GOP leaders, who chose only to freeze those taxes, are increasingly worried that they’ll have to spend weeks more negotiating the megabill if the Senate doesn’t quickly retreat from some of its proposed changes.

Hawley said that he has been talking to House leaders who are warning that the language can’t pass their chamber, necessitating a time-consuming “conference” with the Senate. Speaker Mike Johnson has urged senators to keep their changes to the House-passed bill to a minimum but senators have eyed major changes to the tax package while sanding down some of the proposed spending cuts.

At Monday’s briefing, Sen. Thom Tillis of North Carolina handed out a paper that estimated how much Medicaid funding several states, including his and Hawley’s, would lose under the Senate provider tax proposal.

Republicans are also getting heartburn as MacDonough warns that several key provisions do not comply with the strict rules governing what can be included under reconciliation, which lets them skirt a 60-vote filibuster.

For instance, a plan to shift some food-aid costs to states, generating tens of billions of dollars in savings, is in flux after MacDonough ruled over the weekend that the scheme, which penalized states for their payment error rate, did not comply. Senate Agriculture Committee Republicans are hoping they can salvage the plan with relatively small changes.

Losing the cost-sharing proposal would be a setback for leadership, which is already facing pushback from House and Senate conservatives who believe the bill doesn’t go far enough on cutting spending. Rep. Andy Harris (R-Md.), chair of the hard-right House Freedom Caucus, warned Monday that if the bill “should pass the Senate in its current rumored form, it probably would have trouble in the House.”

MacDonough has also warned that an effort championed by Sen. Mike Lee (R-Utah) to overhaul the federal rulemaking process does not comply with reconciliation rules, but Republicans expect Lee could try to revive it as a floor amendment. Lee and Sens. Rick Scott (R-Fla.) and Ron Johnson (R-Wis.) met separately with Trump on Monday as the president steps up his efforts to win over the trio of outspoken fiscal conservatives. Trump, according to Scott, said that he supports full repeal of clean energy tax credits enacted under predecessor Joe Biden, as well as a focus on waste, fraud and abuse in Medicaid.

Senate conservatives later relayed Trump’s message Monday evening to a closed-door Freedom Caucus meeting, according to four people granted anonymity to describe the gathering.

The centerpiece of the GOP package — its tax and health care language — remains under review with MacDonough. Senate Finance Committee staff met with her Monday to discuss the health provisions and are expected to reconvene on Tuesday to go over the tax language.

Final rulings are not expected to be finished until Wednesday at the earliest — less than a day before Thune wants senators to start voting.

Meredith Lee Hill and Benjamin Guggenheim contributed to this report. 

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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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