A new megabill red line

Politico

10-06-2025

Good Tuesday afternoon. We've been closely following all the megabill action in the Senate, but we've also been keeping an eagle eye on the House.
In particular, we've been watching how members have been drawing red lines even after they passed the bill last month and trying to put senators in a box — a big, beautiful box? — as they ponder changes to the legislation.
The latest example is just in, exclusive to POLITICO: Rep. Lloyd Smucker (R-Pa.) and 37 other members are warning against the use of 'budget gimmicks' in the Senate version of the megabill — saying they will insist 'that any additional tax cuts ... must be matched dollar for-dollar by real, enforceable spending reductions.'
The signers include the likes of Budget Chair Jodey Arrington, Conference Vice Chair Blake Moore and Freedom Caucus Chair Andy Harris.
The upshot for Senate leaders? They will have to be extra careful to find real offsets as they strain to make key business tax provisions permanent, ease the phaseout of clean energy tax incentives and sand down the House's cuts to Medicaid and SNAP.
One thing that probably won't pass muster back in the House is simply writing off the costs of extending the 2017 Tax Cuts and Jobs Act using the 'current policy baseline' tactic and calling it a day.
Add this to the list of emerging House demands on the Senate, which now includes members of the vaunted SALT crew demanding their state-and-local-tax deduction deal stay entirely intact, and Rep. Chip Roy's insistence that the clean energy phaseouts remain untouched, while 13 other House Republicans say they want those same provisions watered down before they vote again.
Keep in mind all of this is happening as the House prepares to take yet another crucial megabill vote this week — on a package of changes to the bill to address procedural 'fatalities' under Senate rules.
Yes, these are small tweaks, and leadership is likely to present them as a mere 'technical' formalities to members. But it's another reminder of the House GOP's tiny majority and the power that a small handful of members has to grind the process to a halt at just about any moment.
WHAT'S STILL COMING TODAY: The House Rules Committee is meeting and will vote this afternoon to establish parameters for floor debate on the White House's rescissions package at 2 p.m., setting up a floor vote that is expected Thursday. The House will vote on multiple bills at 5 p.m., including one that would prohibit non-citizens from voting in the District of Columbia.
ICYMI:
NRCC chair lays out GOP message on LA protests — Rep. Richard Hudson told House Republicans in a closed-door conference meeting this morning to hammer Democrats on the unrest in Los Angeles, according to people granted anonymity to share details of the private discussion. Hudson, a North Carolina Republican who leads the House GOP's campaign arm, said Americans are 'tired' of 'chaos.'
CBC chair goes off-message on LA protests — Rep. Yvette Clarke (D-N.Y.), chair of the Congressional Black Caucus, called President Donald Trump's decision to send 4,000 National Guard members and 700 Marines to Los Angeles an impeachable offense.
SecDef sends a message to Dems on LA protests — Defense Secretary Pete Hegseth clashed with several Democratic lawmakers today over the California unrest. During a House budget hearing in front of the Defense Appropriations panel, Hegseth argued that California Gov. Gavin Newsom and Los Angeles Mayor Karen Bass, both Democrats, mishandled the situation.