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Yahoo
a day ago
- Business
- Yahoo
Trump, Senate GOP face big setback on tax bill's Medicaid overhaul
WASHINGTON – President Donald Trump's major tax, spending and policy legislative package suffered a blow on June 26 when the Senate's parliamentarian ruled that several key Medicaid provisions designed to help cajole nervous Republicans into voting yes can't be included in the bill. The decision from the chamber's leading rules expert deals with proposed Republican changes to Medicaid, the federal health insurance for lower-income families, which has been one of the main battlegrounds in debate over the legislation. Trump and fellow Republicans, who aim to pass the bill without counting on any Democratic support, aim to reduce Medicaid spending by requiring work by able-bodied adults and denying access to non-citizens. More: Trump's 'big, beautiful bill' is shrinking in the Senate: What to know But under Senate rules allowing a simple majority approve the bill, all the provisions must directly impact the federal budget. Parliamentarian Elizabeth MacDonough ruled several Medicaid provisions are subject to filibuster, which would require 60 votes to overcome. The decision is a potential death-knell in a chamber where Republicans outnumber the Democratic caucus 53 to 47. 'Democrats are fighting back against Republicans' plans to gut Medicaid, dismantle the Affordable Care Act, and kick kids, veterans, seniors, and folks with disabilities off of their health insurance – all to fund tax breaks for billionaires," Sen. Jeff Merkley of Oregon, the top Democrat on the Budget Committee, said in a statement. "Republicans are scrambling to rewrite parts of this bill to continue advancing their families-lose, and billionaires-win agenda, but Democrats stand ready to fully scrutinize any changes.' Sen. Ron Wyden of Oregon, the top Democrat on the Finance Committee that oversees Medicaid, said the ruling removed $250 billion in projected savings that Republicans had counted on in the bill. He said the parliamentarian made clear the legislation can't be used to manipulate state-level tax policies. 'Democrats fought and won, striking health care cuts from this bill that would hurt Americans' walking on an economic tightrope,' Wyden said in a statement. 'This bill is rotten to its core, and I'll keep fighting the cuts in this morally bankrupt bill until the end.' The Senate version of Trump's bill has deeper cuts to Medicaid that had been giving some lawmakers pause, and threatening to derail the legislation. The parliamentarian ruled against a provision in the bill related to taxes on health-care providers that states use to fund Medicaid. Sen. Thom Tillis, R-North Carolina, was among those who opposed the Senate's provider-tax language. 'I had some of my own concerns about it from a policy standpoint,' Tillis told USA TODAY. But reducing the amount that the legislation cuts Medicaid could make it less appealing to deficit hawks. Senate GOP leadership has been trying to finalize the bill and set it up for a vote soon, and now must recalibrate. More: Could Trump fail on tax bill? Why going 'big' doesn't always work out as planned 'I don't think we leave until we get it done but I've said for several weeks it wasn't going to happen this week,' Tillis said. Sen. John Kennedy, R-Louisiana, called the decision "a setback." 'We're gonna have to regroup," Kennedy told USA TODAY. Sen. Ron Johnson, R-Wisconsin, said: 'What the parliamentarian did was a little bit of a hand grenade.' The provisions at stake aimed to: Prohibit Medicaid participation to adults and children whose citizenship or immigration status could not be immediately verified. Deny Medicaid eligibility to immigrants who are not citizens. Reduce federal Medicaid matching funds to 80% from 90% for states that provide coverage to undocumented immigrants. Prohibit Medicaid and the related Children's Health Insurance Program from funding gender-affirming care. Block states from increasing provider taxes on nursing homes or intermediate care facilities, which Democrats said could cut health care to millions of people. Republicans criticized the parliamentarian's decision. "The Senate Parliamentarian is not elected," Rep. Greg Steube, R-Florida, wrote on social media. "She is not accountable to the American people. Yet she holds veto power over legislation supported by millions of voters." This article originally appeared on USA TODAY: Trump, Senate GOP face tax bill setback on Medicaid overhaul
Politico
a day ago
- Business
- Politico
Megabill delay 'possible,' Johnson says
Democrats say the Senate's rules keeper has nixed several tax provisions from Republicans' domestic policy megabill, including a special carveout for religious schools from a proposed hike in a college endowment tax. A separate break for private and religious schools was also dropped, as were regulations pertaining to guns. Parliamentarian Elizabeth MacDonough is also said to be objecting to a section in the sprawling tax, energy, immigration and defense bill aimed at reducing improper payments of the Earned Income Tax Credit, a wage supplement for the working poor. She also struck plans to up penalties for leaking private taxpayer information — a provision inspired by the leak of President Donald Trump's and other wealthy people's tax information to the news media. The deleted items are relatively small, especially compared to the health provisions MacDonough has struck in recent days that have forced Republicans to scramble to shore up the package. But the provisions nevertheless helped win support for the overall plan from individual lawmakers. Dropping a proposed charitable credit benefiting religious schools could save Republicans money. Still on deck, Democrats said, are their challenges to parts of the bill addressing a tax incentive program for economically struggling areas called Opportunity Zones; a section related to foreign entities claiming a clean energy production tax credit; provisions aimed at preventing undocumented workers from claiming refundable tax credits; and a new savings vehicle for children, dubbed Trump accounts. MacDonough has also not yet considered a Democratic bid to kill Republican plans to use a so-called current policy baseline to measure the cost of their tax package, said Sen. Ron Wyden , the ranking Democrat on the Finance Committee, in a statement. The announcement comes as part of a so-called Byrd Bath, a process by which MacDonough goes through lawmakers' legislation, provision by provision, to ensure it abides by the Senate's strict rules about what may be included in the so-called reconciliation bill. They're supposed to be exclusively focused on budgetary matters, though, because they are filibuster-proof, lawmakers frequently try to include other provisions as well. The decisions about which items fail sometimes leave lawmakers scrambling to rewrite them so they'll conform. MacDonough does not comment publicly on her determinations, and it's unclear whether the provisions could still be salvaged if they are rewritten. A spokesperson for Senate Finance Committee Chair Mike Crapo (R-Idaho) did not immediately respond to a request for comment. It's generally easier to include tax provisions in reconciliation bills, because they are so closely tied to revenues, than legislative language dealing with other subjects.
Politico
a day ago
- Business
- Politico
Johnson hails 'progress' toward SALT deal
Democrats say the Senate's rules keeper has nixed several tax provisions from Republicans' domestic policy megabill, including a special carveout for religious schools from a proposed hike in a college endowment tax. A separate break for private and religious schools was also dropped, as were regulations pertaining to guns. Parliamentarian Elizabeth MacDonough is also said to be objecting to a section in the sprawling tax, energy, immigration and defense bill aimed at reducing improper payments of the Earned Income Tax Credit, a wage supplement for the working poor. She also struck plans to up penalties for leaking private taxpayer information — a provision inspired by the leak of President Donald Trump's and other wealthy people's tax information to the news media. The deleted items are relatively small, especially compared to the health provisions MacDonough has struck in recent days that have forced Republicans to scramble to shore up the package. But the provisions nevertheless helped win support for the overall plan from individual lawmakers. Dropping a proposed charitable credit benefiting religious schools could save Republicans money. Still on deck, Democrats said, are their challenges to parts of the bill addressing a tax incentive program for economically struggling areas called Opportunity Zones; a section related to foreign entities claiming a clean energy production tax credit; provisions aimed at preventing undocumented workers from claiming refundable tax credits; and a new savings vehicle for children, dubbed Trump accounts. MacDonough has also not yet considered a Democratic bid to kill Republican plans to use a so-called current policy baseline to measure the cost of their tax package, said Sen. Ron Wyden , the ranking Democrat on the Finance Committee, in a statement. The announcement comes as part of a so-called Byrd Bath, a process by which MacDonough goes through lawmakers' legislation, provision by provision, to ensure it abides by the Senate's strict rules about what may be included in the so-called reconciliation bill. They're supposed to be exclusively focused on budgetary matters, though, because they are filibuster-proof, lawmakers frequently try to include other provisions as well. The decisions about which items fail sometimes leave lawmakers scrambling to rewrite them so they'll conform. MacDonough does not comment publicly on her determinations, and it's unclear whether the provisions could still be salvaged if they are rewritten. A spokesperson for Senate Finance Committee Chair Mike Crapo (R-Idaho) did not immediately respond to a request for comment. It's generally easier to include tax provisions in reconciliation bills, because they are so closely tied to revenues, than legislative language dealing with other subjects.
Politico
a day ago
- Business
- Politico
School choice, religious school tax carveouts run afoul of Senate's Byrd rule
Democrats say the Senate's rules keeper has nixed several tax provisions from Republicans' domestic policy megabill, including a special carveout for religious schools from a proposed hike in a college endowment tax. A separate break for private and religious schools was also dropped, as were regulations pertaining to guns. Parliamentarian Elizabeth MacDonough is also said to be objecting to a section in the sprawling tax, energy, immigration and defense bill aimed at reducing improper payments of the Earned Income Tax Credit, a wage supplement for the working poor. She also struck plans to up penalties for leaking private taxpayer information — a provision inspired by the leak of President Donald Trump's and other wealthy people's tax information to the news media. The deleted items are relatively small, especially compared to the health provisions MacDonough has struck in recent days that have forced Republicans to scramble to shore up the package. But the provisions nevertheless helped win support for the overall plan from individual lawmakers. Dropping a proposed charitable credit benefiting religious schools could save Republicans money. Still on deck, Democrats said, are their challenges to parts of the bill addressing a tax incentive program for economically struggling areas called Opportunity Zones; a section related to foreign entities claiming a clean energy production tax credit; provisions aimed at preventing undocumented workers from claiming refundable tax credits; and a new savings vehicle for children, dubbed Trump accounts. MacDonough has also not yet considered a Democratic bid to kill Republican plans to use a so-called current policy baseline to measure the cost of their tax package, said Sen. Ron Wyden , the ranking Democrat on the Finance Committee, in a statement. The announcement comes as part of a so-called Byrd Bath, a process by which MacDonough goes through lawmakers' legislation, provision by provision, to ensure it abides by the Senate's strict rules about what may be included in the so-called reconciliation bill. They're supposed to be exclusively focused on budgetary matters, though, because they are filibuster-proof, lawmakers frequently try to include other provisions as well. The decisions about which items fail sometimes leave lawmakers scrambling to rewrite them so they'll conform. MacDonough does not comment publicly on her determinations, and it's unclear whether the provisions could still be salvaged if they are rewritten. A spokesperson for Senate Finance Committee Chair Mike Crapo (R-Idaho) did not immediately respond to a request for comment. It's generally easier to include tax provisions in reconciliation bills, because they are so closely tied to revenues, than legislative language dealing with other subjects.
Politico
a day ago
- Business
- Politico
GOP handed more megabill setbacks as numerous tax provisions get sidelined
Democrats say the Senate's rules keeper has nixed several tax provisions from Republicans' domestic policy megabill, including a special carveout for religious schools from a proposed hike in a college endowment tax. A separate break for private and religious schools was also dropped, as were regulations pertaining to guns. Parliamentarian Elizabeth MacDonough is also said to be objecting to a section in the sprawling tax, energy, immigration and defense bill aimed at reducing improper payments of the Earned Income Tax Credit, a wage supplement for the working poor. She also struck plans to up penalties for leaking private taxpayer information — a provision inspired by the leak of President Donald Trump's and other wealthy people's tax information to the news media. The deleted items are relatively small, especially compared to the health provisions MacDonough has struck in recent days that have forced Republicans to scramble to shore up the package. But the provisions nevertheless helped win support for the overall plan from individual lawmakers. Dropping a proposed charitable credit benefiting religious schools could save Republicans money. Still on deck, Democrats said, are their challenges to parts of the bill addressing a tax incentive program for economically struggling areas called Opportunity Zones; a section related to foreign entities claiming a clean energy production tax credit; provisions aimed at preventing undocumented workers from claiming refundable tax credits; and a new savings vehicle for children, dubbed Trump accounts. MacDonough has also not yet considered a Democratic bid to kill Republican plans to use a so-called current policy baseline to measure the cost of their tax package, said Sen. Ron Wyden , the ranking Democrat on the Finance Committee, in a statement. The announcement comes as part of a so-called Byrd Bath, a process by which MacDonough goes through lawmakers' legislation, provision by provision, to ensure it abides by the Senate's strict rules about what may be included in the so-called reconciliation bill. They're supposed to be exclusively focused on budgetary matters, though, because they are filibuster-proof, lawmakers frequently try to include other provisions as well. The decisions about which items fail sometimes leave lawmakers scrambling to rewrite them so they'll conform. MacDonough does not comment publicly on her determinations, and it's unclear whether the provisions could still be salvaged if they are rewritten. A spokesperson for Senate Finance Committee Chair Mike Crapo (R-Idaho) did not immediately respond to a request for comment. It's generally easier to include tax provisions in reconciliation bills, because they are so closely tied to revenues, than legislative language dealing with other subjects.
