Senate working to revamp Trump-backed bill amid new obstacles

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 updated on June 24, 2025

Senate Republicans are scrambling to salvage their massive domestic policy bill, as key holdouts and procedural roadblocks force a last-minute rewrite. The bill, a cornerstone of President Donald Trump’s agenda, is undergoing major surgery to appease dissenting voices and comply with arcane Senate rules, as Politico reports. This isn’t the smooth legislative win conservatives hoped for, but it’s a fight worth watching.

Senate GOP leaders are racing to start voting by Thursday, aiming for passage before July 4, but unresolved tax and Medicaid issues cloud the path forward. A closed-door briefing on Monday exposed deep divisions, with senators grappling over the state-and-local-tax deduction cap and rural hospital funding. It’s a classic case of conservative priorities clashing with pragmatic deal-making.

The Senate parliamentarian, Elizabeth MacDonough, is wielding her pen like a guillotine, reviewing tax provisions to ensure they fit budget reconciliation rules. Her rulings, expected by Wednesday night, are delaying the bill’s release through a process dubbed the “Byrd bath.” Leave it to bureaucrats to slow down America-first policies with red tape.

Tax disputes derail progress

A bitter feud over the state-and-local-tax deduction cap pits House and Senate Republicans against each other. Sen. Markwayne Mullin’s proposal to keep a $40,000 cap while lowering the income phase-out threshold was shot down by House GOP members days ago. This standoff proves even conservatives can’t escape the swamp’s infighting.

Medicaid reforms are another sticking point, with the Senate mirroring the House’s decision to maintain federal cost shares for the 2010 expansion. A proposed fund to shield rural hospitals from Medicaid changes sounds noble, but details remain murky. Sen. Josh Hawley’s enthusiasm for the fund -- “I am absolutely happy with a rural fund” -- feels optimistic when the plan’s impact is anyone’s guess.

The Senate’s push to curb provider taxes, which states use to fund Medicaid, is bolder than the House’s freeze on those taxes. House GOP leaders fret that this change could spark weeks of negotiations, delaying Trump’s agenda further. Why can’t both chambers align on cutting bureaucratic bloat instead of quibbling?

Parliamentarian's rulings spark outrage

MacDonough’s rulings are gutting key provisions, like a food-aid cost-sharing plan that shifted costs to states based on payment errors. Senate Agriculture Committee Republicans are scrambling to rewrite it, but the clock is ticking. This is what happens when unelected officials meddle in conservative reforms.

Sen. Mike Lee’s bold proposal to overhaul federal rulemaking also got the axe from MacDonough for violating reconciliation rules. Undeterred, Lee may push it as a floor amendment, showing the kind of backbone conservatives crave. Giving up isn’t in his playbook, and it shouldn’t be.

Senate conservatives, including Lee, Rick Scott, and Ron Johnson, huddled with Trump on Monday to align on priorities. Trump’s call to repeal clean energy tax credits and tackle Medicaid waste resonates with voters tired of progressive giveaways. It’s a reminder of why his leadership cuts through Washington’s noise.

House warns Senate on bill's prospects

House Freedom Caucus Chair Rep. Andy Harris warned that the Senate’s bill, in its current form, might crash and burn in the House. “It probably would have trouble,” Harris said, signaling conservative frustration with the Senate’s tinkering. He’s right -- watering down Trump’s vision won’t fly with the base.

Senate Majority Leader John Thune blamed the “Byrd bath” for delays, saying it’s “taking a little bit longer.” His excuse highlights how Senate rules choke progress, forcing conservatives to jump through hoops. Thune’s patience is admirable, but voters want results, not process.

Sen. John Kennedy predicted passage eventually but admitted, “I just can’t tell you when.” His candor reflects the chaos, but conservatives deserve more than vague promises. Kennedy’s “we’ve got a lot of stuff to work out” is an understatement when the bill’s fate hangs in the balance.

Conservatives demand deeper cuts

Senate and House conservatives are pushing for sharper spending cuts, unwilling to settle for a diluted bill. Their resolve is a rebuke to the establishment’s half-measures, which too often cave to progressive pressures. Trump’s base expects bold action, not compromise.

Senate Finance Committee staff met with MacDonough on Monday to hash out health provisions and planned another meeting on Tuesday for tax issues. These closed-door talks underscore the bill’s complexity and the Senate’s struggle to align with House demands. It’s a policy wonk’s dream and a taxpayer’s nightmare.

Speaker Mike Johnson urged senators to stick closely to the House-passed bill, but the Senate’s major tax revisions and softer spending cuts suggest otherwise. The disconnect risks derailing a bill meant to deliver on Trump’s promises. If conservatives don’t unify, the left’s agenda wins by default.

About Alex Tanzer

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