Congress

The Senate megabill is on a collision course with House fiscal hawks

Published

12 months ago

June 30, 2025

House fiscal hawks are looking at the math underlying Senate Republicans’ sprawling domestic policy legislation, and they don’t like what they see.

As Senate Republicans try to muscle President Donald Trump’s “big, beautiful bill” for final passage, they’re on track to violate a budget framework brokered between House fiscal hawks and Speaker Mike Johnson. Under that framework, if the GOP piles on tax cuts over $4 trillion, they’d need to match them dollar-for-dollar with additional spending cuts beyond the $1.5 trillion in the House-passed bill.

“The Senate version adds $651 billion to the deficit — and that’s before interest costs, which nearly double the total,” said the House Freedom Caucus in a Monday afternoon post on X. “The Senate must make major changes and should at least be in the ballpark of compliance with the agreed upon House budget framework.”

It’s a wonky hill to die on, but dozens of House conservatives insisted on the deal before smoothing the megabill’s path through their chamber. Johnson at one point told the conservatives they could go after his gavel if he didn’t hold up the deal — what some of the holdouts considered a “blood oath.”

If the House hawks stand by the deal and the Senate bill doesn’t change appreciably during the final amendment vote marathon that got underway Monday, it could force GOP leaders to “conference” the legislation between the two chambers — likely delaying the bill’s passage beyond Trump’s deadline of July 4.

Now compounding concerns for House GOP leaders, who have ordered members back to Washington to start voting on the bill Wednesday morning, billionaire Elon Musk sent new volleys of criticism at Trump’s marquee legislation Monday over the bill’s deficit impact.

“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” said Musk on X on Monday. “And they will lose their primary next year if it is the last thing I do on this Earth.”

The House fiscal hawks have been crystal-clear about their fiscal red lines, though many now privately worry that they could end up getting jammed by Senate Republicans — and by Trump — with a far spendier bill. Johnson on Monday would not address whether the pending Senate bill could pass the House but told reporters he’s long advised Senate GOP leaders to hew as close to the House version as possible.

There’s “a lot of game left to play,” he added.

Notably, a group of 38 House Republicans led by Rep. Lloyd Smucker (R-Pa.) wrote Senate Majority Leader John Thune in early June warning that any changes to the GOP megabill needed to adhere to the fiscal framework laid out by the House. Under that plan, if the GOP includes $4.5 trillion in tax cuts in their bill, then they would need to scrounge up at least $2 trillion in spending cuts.

It’s already looking to be a far cry from what Senate Republicans hope to pass in the coming hours.

According to the Joint Committee on Taxation, the Senate’s plan includes around $4.45 trillion of tax cuts versus the $3.8 trillion in tax cuts passed by the House. But the spending cuts contemplated by the Senate GOP wouldn’t come close to making up the difference, according to the Congressional Budget Office, the other official budget scorer on Capitol Hill.

CBO estimates the Senate plan includes around $1.5 trillion in mandatory spending cuts, but that amount is reduced by around $300 billion in one-time investments in border funding and national security policy.

“The Senate bill is currently out of compliance with the budget framework by $651 billion, which is adjusted for dynamic revenue from higher economic growth,” said Paul Winfree, CEO of the Economic Policy Innovation Center and a top economic official during Trump’s first administration, in a text. “I think it will be very important to get that number closer to $0 to avoid conference.”

Senate Republicans in many ways made steeper cuts to Medicaid than the House, which would have otherwise helped rectify the difference.

But between $200 and $300 billion in spending cuts included in the House-passed bill were knocked out because they didn’t comply with Senate budget rules. The chamber’s parliamentarian, Elizabeth MacDonough, has been in constant talks with Senate Republican and Democratic staff about whether provisions in the legislation are fit for the filibuster-skirting reconciliation process.

“What we’ve been told is somewhere around $250 billion, because I’ve heard $300 and I’ve heard [$200], so I’m gonna split the difference,” said Sen. Markwayne Mullin (R-Okla.) of the sidelined spending cuts.

Mullin added that House Republicans should look at the score of tax cuts under the so-called current policy baseline, which assumes that trillions of dollars of expiring tax cuts would be extended.

“I think it’s up to the House how they want to look at this, because they can go in two different directions,” said Mullin. “If you go underneath current law, then you have a deficit. If you go into current policy, you actually have a surplus of $507 billion.”

Still, prominent Republicans such as Budget Chair Jodey Arrington (R-Texas) and conservative firebrand Rep. Chip Roy (R-Texas) have argued that Senate Republicans still need to do the math as laid out in the House budget, regardless of which baseline they use.

Rep. Keith Self, another Texas Republican, wrote Monday on X that senators are “completely ignoring” the House budget framework. “This isn’t just reckless,” he wrote, “it’s fiscally criminal.”

Meredith Lee Hill contributed to this report.

Congress

GOP hard-liners outline anti-abortion, military funding demands for party-line bill

Published

1 hour ago

June 24, 2026

Blue Light Newsroom

The House Freedom Caucus sent a letter to Speaker Mike Johnson on Wednesday outlining its demands for a third reconciliation bill, including extending a prohibition on federal funding for abortion providers and immediately paying for any new spending.

“This is our last and best chance to prove they were right to send us here to fight for them,” the House Freedom Caucus Board of Directors wrote in the letter, referring to U.S. voters who gave the GOP control of both chambers this Congress. “That is why any Reconciliation 3.0 bill must be focused on wins for the American people.”

The letter comes as House Republicans have started to move ahead on another party-line package, though without consensus on the details of what the legislation will actually include. The conference is considering provisions to fund the war in Iran alongside other policies related to affordability and health care. The bill is also expected to tackle alleged fraud in government programs as one way to offset the costs.

Several members of the conservative hard-liner group in recent weeks have warned they would only support the upcoming bill if any new spending included in it is fully paid for. Some members, like Rep. Chip Roy of Texas, have also said the pay-fors need to be immediate — not several years in the future.

In the letter, the members also told Johnson the next bill should eliminate clean energy tax credits — something they pushed for in the first reconciliation bill last year. The lawmakers are also asking for reforms to health care, the removal of certain firearm-related taxes and “responsible short-term funding for key government personnel and services” to prevent another government shutdown ahead of the midterms.

With the military funding portion of the reconciliation bill, the members requested the package should be used to “modernize our military and deliver clear America First national security priorities.”

“Together with President Trump, we must use our unified Republican majorities to advance a bold, America First agenda,” the members wrote in the letter. “We control the field — we cannot afford to leave any points on the board in reconciliation. We stand ready to work with you to accomplish this goal.”

Congress

Johnson to meet with Trump in last-ditch bid to unstick House floor

Published

2 hours ago

June 24, 2026

Blue Light Newsroom

Republican leaders are scrambling to regain control of the House after GOP hard-liners effectively shut down the floor Wednesday over their demands that the Senate pass a stalled elections overhaul bill.

Speaker Mike Johnson is set to meet with President Donald Trump Thursday morning in an effort to try and find a way out of the mess, according to four people granted anonymity to describe the private plans.

Johnson is planning to keep the House in session Thursday and have members vote on at least one bipartisan bill that has already been teed up for the floor as he tries to convince the president to help end the hard-liners’ blockade.

GOP leaders hoped to put several additional bills up for a vote this week, including a pair of fiscal 2027 spending measures. But the group of MAGA loyalists, led by Rep. Anna Paulina Luna of Florida, is insisting no legislation can pass until the SAVE America Act clears the Senate.

If Johnson can’t enlist Trump to break the impasse, the House will leave for the week, the four people said.

A breakthrough won’t be easy. The president is just as animated about the SAVE America Act as the hard-liners holding up the House floor. He abruptly canceled a planned bill-signing for landmark bipartisan housing legislation Wednesday morning, just hours before it was scheduled to take place in the Capitol with Johnson and other GOP leaders, citing the need to prioritize the elections bill.

Johnson is expected to pitch Trump on a plan to enact a watered-down version of the SAVE America Act’s proof-of-citizenship requirement by including a grant program to encourage adoption of voter ID laws in a long-shot plan to pass a new party-line policy bill this year.

But that is only a fraction of what Trump wants the Republican Congress to get done this year, and the GOP hard-liners are already panning Johnson’s plan as insufficient.

Congress

A frustrated Trump unloads on Senate Republicans behind closed doors

Published

3 hours ago

June 24, 2026

Blue Light Newsroom

Senate Republicans hoped to use a closed-door lunch to clear the air with President Donald Trump. Instead, the president vented his frustrations with the senators for more than an hour, leaving them no closer to detente.

The meeting came at an explosive moment, with GOP lawmakers increasingly frustrated by Trump’s mercurial treatment of congressional Republican priorities. Just hours before arriving on Capitol Hill, Trump delivered his latest rug-pull — announcing he would refuse to sign a major housing bill that leaders were already touting after big bipartisan majorities passed it this week.

But senators said Trump arrived determined to prosecute his internal grudges against the Republican lawmakers who have opposed him at times — particularly those who have expressed misgivings about the Iran war and who are refusing to comply with the president’s demands for swift passage of a controversial elections bill.

Sen. John Kennedy (R-La.) described Trump as “mad as a murder hornet” about the Iran vote, while Sen. Roger Marshall (R-Kansas) described the scene as “very much like a hospital board meeting, when a bunch of doctors are yelling at each other.”

Marshall added that “at the end of the day, we’ll figure out a way to get along.”

Another GOP senator, granted anonymity to speak candidly, called the lunch “very intense.” Sen. Ted Cruz (R-Texas), deploying some go-to congressional lingo for heated encounters, called it “spirited,” “frank” and “candid.”

Trump and Sen. Bill Cassidy (R-La.) sparred at length over the Iran war, according to two people granted anonymity to describe the private interaction. Trump also railed over Tuesday’s successful war powers vote, lambasting Cassidy and three other GOP senators who voted for the resolution.

Cassidy acknowledged the two had a heated exchange to reporters after the lunch. After Trump questioned why Republicans would vote against him on the war, Cassidy said he told the president that the conflict was not going as well as senators were being told.

“The president said something negative about me. I received it as attempting to bully me from asking a question that I think the American people need to know, and I’m not going to be bullied,” said Cassidy, who recently lost his campaign for renomination after Trump endorsed against him.

Sen. Jim Justice (R-W.Va.) also confirmed the exchange between Trump and Cassidy. He said the two “harbor bad feelings” and urged them both to move on.

The meeting also failed to reveal a way forward on Trump’s No. 1 priority, the elections bill known as the SAVE America Act.

Trump cited the need to pass the legislation in his stunning decision Wednesday morning to cancel a signing ceremony for the long-stalled housing bill. A rostrum had been erected in Statuary Hall for the occasion, and House GOP leaders were promoting its benefits at a news conference when the presidential U-turn occurred.

Senators said Trump largely reiterated his publicly stated positions on the housing bill, the GOP election bill and his demand that they eliminate the 60-vote legislative filibuster.

“He believes that the SAVE America act ought to be in front of the housing bill,” Justice said.

Sen. Rand Paul said there had been “a thorough airing” of the elections bill during the meeting, but added it’s unclear “if there is a solution.”

The announcement only served to further exasperate the Senate GOP ahead of the lunch, which had been arranged by Sen. Rick Scott (R-Fla.), a MAGA loyalist who acted without the foreknowledge of Senate Majority Leader John Thune.

Underscoring the mood going into the meeting, Sen. John Kennedy (R-La.) said, “I would advise them to only use plastic utensils today.”

Republicans had hoped the housing bill would give them a long-sought legislative victory that would get the party on the same page and give them a foothold to argue that they are responding to Americans’ affordability concerns heading into the midterms.

Instead, Trump’s surprise declaration, which appeared to catch even some of his own staff off guard, became the latest curveball for Senate Republicans — following a surprise request for White House ballroom security funding and the announcement of a Justice Department “Anti-Weaponization Fund” that overshadowed and delayed passage of a GOP immigration enforcement bill.

Since then, Trump also has thrown a key surveillance program into limbo and upended the confirmation plans for his own nominee for director of national intelligence.

Most persistently, he has fixated on Senate Republicans passing the SAVE America Act — including by eliminating the filibuster — even though Thune and other GOP senators have said repeatedly that there aren’t the votes to do that.

“There is a huge group of people who really appreciate what the president is doing right now and it’s the Democrat party,” Sen. Thom Tillis (R-N.C.) said. ”And we’ve got to get our act together and stop surprising people and stop having conflicting messages.”