In news that’s not surprising, Senate Republicans hit a major setback in their race to pass a massive tax and spending package on Thursday, as a chamber official ruled against a key Medicaid provision, putting in doubt plans for a vote by the end of the week. The nonpartisan Senate parliamentarian, who plays a key role in determining what provisions can stay in the fast-tracked bill, said the GOP change to how states can tax Medicaid providers does not adhere to rules for passing the bill with a simple majority. This was a key provision to help offset the costs of the bill’s tax cuts. Senate Republicans a day earlier had proposed a $15 billion rural health stabilization fund to address the slashing of a provider tax that is a critical source of funding for many states. Democrats, who are making arguments before the parliamentarian to slash key sections of the bill, called the ruling a win. Other provisions were flagged by the parliamentarian, including one barring Medicaid from covering gender affirming care and denying coverage to some Medicaid recipients who are not U.S. citizens. Senate Republicans had hoped to begin voting on the legislation tomorrow, but it’s unclear if they’ll meet their deadline to send it to President Donald Trump’s desk by the self-imposed July 4th deadline. They are also facing intense pressure from President Trump to pass the bill this week, and several members of the conference are due for a White House event today as he cranks up pressure on Senate Republicans to quickly pass his massive tax-and-spending agenda. There is also lingering debate over the fate of energy tax credits in the bill, changes to the safety net program for low-income families known as the Supplemental Nutrition Assistance Program or SNAP and a provision on public lands. Senate Republicans are also navigating differences with House GOP lawmakers who represent moderate districts in New York and California who insist they need to preserve a state and local tax break, known as SALT. That section of the bill was negotiated with House Speaker Mike Johnson (R-Louisiana) for their constituents who pay high state and local taxes. Senate Majority Leader John Thune (R-South Dakota) can only afford to lose three GOP votes in order to pass the bill. The Senate is expected to stay in session through the weekend and well into next week as Leader Thune tries to salvage what he can of the package to pass it and send it back to the House who then must pass the revised legislation before July 4th.
For today, the Senate will take up Confirmation of Executive Calendar #93, Kenneth Kies, of Virginia, to be an Assistant Secretary of the Treasury.
While the House waits for Senate action on the big beautiful bill, it is expected to take up H.R. 875 – Jeremy and Angel Seay and Sergeant Brandon Mendoza Protect Our Communities from DUIs Act of 2025 and H.R. 275 – Special Interest Alien Reporting Act of 2025.
