The House Rules Committee convened just after 1 A.M. on Wednesday morning, with hundreds of amendments to be debated on the “one big, beautiful” reconciliation bill and is still meeting, seeking consensus from the Republican factions that want their conditions met. The legislation includes an extension of the tax cuts President Donald J. Trump enacted in 2017, energy policy, changes to Medicaid and a debt limit increase, among other provisions. Once the House Rules Committee advances the bill, the full chamber can debate and vote on the legislation. Speaker Mike Johnson (R-Louisiana) wants that done by Memorial Day recess.
Speaker Johnson and moderate Republicans have zeroed in on an agreement for the state and local tax (SALT) deduction cap, solving a critical hang-up that has dogged the party’s “big, beautiful bill.” The proposal would increase the SALT deduction cap to $40,000 — quadruple the current $10,000 cap — for individuals making $500,000 or less in income and that level would increase 1 percent a year over 10 years. That marks an increase from the $30,000 cap with a $400,000 income cap currently in the bill — a provision that SALT Caucus members vehemently rejected. When the bill expires, the deduction and income limits stay at $44,000 and $552,000. The deal is contingent on President Trump endorsing the manager’s amendment to make the changes in the bill; the Speaker holding the line if the Senate balks; and the SALT Caucus convincing Senate Republicans to support the deal.
A key holdup continues to be that the conservatives are continuing to push for deeper changes to Medicaid, the safety-net health program currently serving nearly 80 million Americans. The pending bill implements new work requirements for some beneficiaries, and leaders have discussed speeding up implementation by two years to placate the holdouts. They want to reduce the federal share of some Medicaid costs, known as FMAP, and to further limit the use of provider taxes in states that expanded Medicaid under the 2010 Affordable Care Act by lowering the so-called safe harbor rate from the current 6 percent to 4 percent. The nonpartisan Congressional Budget Office (CBO) released its assessment of the bill Tuesday night. It found that if passed, the bill would add $2.3 trillion to the national deficit over 10 years. It would also force nearly $500 billion in Medicare cuts. Speaker Johnson and House Freedom Caucus members will head to the White House for a 3 P.M. meeting today to try to come to a consensus on the remaining issues.
Across the Capitol, the Senate is expected to take up a Motion to proceed to Cal. #66, S.1582 Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The Senate voted 66-22 late Monday to advance the bill that aims to regulate some cryptocurrencies. The bill faced some Democratic opposition in recent weeks over President Donald Trump’s cryptocurrency ventures, but it ultimately garnered support from 16 Democrats, including Senator Cory Booker, (D-New Jersey) and Senator Adam Schiff, (D-California). The industry-backed measure establishes rules targeting stablecoins, a type of cryptocurrency pegged to the value of another asset, often the U.S. dollar.
While the House awaits the “one big beautiful bill,” it will consider S.J. Res. 31 – Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Environmental Protection Agency relating to ‘‘Review of Final Rule Reclassification of Major Sources as Area Sources Under Section 112 of the Clean Air Act.’’
