Congress
Senate rejects Susan Collins amendment to boost rural hospitals, raise taxes on wealthy
The Senate rejected a bid by Sen. Susan Collins (R-Maine) to raise taxes on the ultra-wealthy and boost money for rural medical providers in the GOP’s megabill.
The chamber voted 78-22 against a procedural motion related to her amendment, which would have increased a rural hospital fund from $25 billion over five years to $50 billion and allowed a wider range of health providers to tap it. The amendment also would have raised the top tax rates for individuals who earn more than $25 million a year and couples earning more than $50 million starting next year.
It remains unclear whether the failure of the amendment could cost GOP leaders Collins’ vote. She had been concerned about the impact on rural hospitals from the bill, and even questioned if any amount in a rural hospital fund would help offset the losses.
“Rural providers, especially our rural hospitals and nursing homes, are under great financial strain right now, with many having recently closed and others being at risk of closing,” Collins said before the vote. “This amendment would help keep them open and caring for those who live in rural communities.”
Most Democrats joined the majority of Republicans in opposing consideration of the amendment. Sen. Ron Wyden (D-Ore.) called it a “Band-Aid on an amputation” that would barely offset the other health care cuts in the bill: “It would be much more logical to simply not cut $1 trillion from Medicaid in the first place,” he said. Georgia Sens. Jon Ossoff and Raphael Warnock and Virginia Sen. Mark Warner were the only Democrats to vote with Collins, along with independent Sen. Angus King of Maine.
Several GOP senators have aired concerns that the bill’s cuts to Medicaid in the bill would force rural hospitals to close. The bill lowers the amount a state can tax a hospital and then use the funding to qualify for more federal Medicaid dollars without having to dip into their own general funds. Hospitals don’t mind the tax because they can get higher payments from their state.
Conservatives have claimed these provider taxes amount to a “money laundering” scheme that enables states to use the extra federal dollars for other things. But the hospital industry has fought this claim, arguing that the provider taxes are needed to help rural hospitals that operate on thin margins.
Congress
Cole on paying for the war
House Appropriations Chair Tom Cole doesn’t think Congress should find spending cuts to offset the total cost of the Middle East war and the military spending request lawmakers expect from the administration in the coming days.
“I think war is never paid for when you fight it, it’s paid for over time,” the Oklahoma Republican said in an interview Tuesday. “We didn’t pay for World War II or Korea or World War I for that matter. I mean, so I don’t think it should be offset.”
“I have no doubt that some people will want to raise those questions,” Cole added. “I personally don’t see how you can do that.”
Congress
Trump’s revised SAVE America Act faces headwinds in the House
DORAL, Florida — President Donald Trump’s call for congressional action on an updated elections overhaul is facing serious doubts from senior House Republicans who aren’t convinced it can pass the chamber a third time.
Trump’s demand for a near-total ban on mail voting, in particular, remains an obstacle. When GOP leaders put a version of the SAVE America Act on the House floor last month, they left out that provision, bowing to some Republicans’ internal concerns.
Those dynamics have not changed, according to four people granted anonymity to describe internal conversations, even after Trump told Speaker Mike Johnson at the House Republican policy retreat Monday to draft a new version of the bill with the mail voting provision and other additions.
Several members pressed Johnson on the SAVE America Act during a question-and-answer session behind closed doors Tuesday morning. But he remained noncommittal about how Congress would pass it, according to three people in the room, and noted Senate Majority Leader John Thune has raised concerns about the legislation tying up the other chamber.
Asked if the House could pass a third version of the legislation, House Majority Leader Steve Scalise said in a brief interview that Republicans would “be talking about that” during their closed-door meetings.
“I mean, obviously we passed the SAVE America Act, which is all of the things — you know, prove citizenship, show ID to vote — that’s over in the Senate, and there’s a lot of momentum building to get the Senate to move that bill to the president’s desk,” Scalise said.
“So I know that momentum is going to keep building,” he added. “Obviously, we’re talking these next few days about the remaining things we’re going to do this year.”
Congress
House Budget chair eyes more safety-net cuts for second megabill
DORAL, Florida — “Fraud prevention” in federal and state safety-net programs should be the main target of a new Republican reconciliation bill, House Budget Chair Jodey Arrington said in an interview Tuesday where he also called for reviving Medicaid spending cuts provisions that fell out of last year’s GOP megabill.
“The whole kit and caboodle of welfare is $1.6 trillion in our budget,” Arrington said on the sidelines of the House Republican policy retreat. “But it’s also not just welfare — it’s programs across the federal government that states need to be responsible [for].”
Arrington said Republicans needed to act after federal officials identified potentially billions of dollars of potential benefits fraud in Minnesota. But the suggestion of additional cuts to safety-net programs comes as House Republicans vulnerable in the upcoming midterms deal with the political fallout of the Medicaid and food-aid cuts enacted last year.
“I’m going to listen to everything,” said Rep. Rob Wittman, a Virginia Republican battling to keep a district that could be redrawn in Democrats’ favor. “I think we need to be very thoughtful about what we do and how we go about doing that.”
Arrington said he wanted to revisit several proposals to reduce Medicaid spending that did not end up complying with strict Senate rules for a filibuster-skirting budget package. He suggested Senate Republicans didn’t spend “a lot of time” last year reworking them to pass muster.
Arrington also said he wants to identify Pentagon spending cuts that would offset new investments President Donald Trump wants for the military — something that will likely trigger pushback from GOP defense hawks.
“I think there’s certainly waste at the Pentagon,” he said. “I think the president and his team want to retool it, modernize it, but there’s also going to be a capital investment associated with it. I just want to make sure that whatever we’re spending, we’re offsetting.”
While Speaker Mike Johnson has repeatedly promised GOP hard-liners he will push for a new reconciliation bill, he continues to face serious internal doubts — especially after Trump failed to mention it once in a nearly hourlong address to Republican lawmakers Monday.
A senior House Republican, granted anonymity to candidly discuss internal conversations, said lawmakers shouldn’t “kill themselves” to do one given Trump’s lack of interest. And a key committee chair remains publicly skeptical of the push, noting Tuesday the House GOP majority is even thinner than it was in July, when the megabill passed.
“I’d love to do a second reconciliation bill, but I’d also love to be Brad Pitt,” Ways and Means Chair Jason Smith (R-Mo.) said. “It’s never going to happen.”
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