Senate GOP Tries to Tie Loose Ends on SALT, Medicaid

bgov.com

June 24, 2025 9:07 am

Senate leaders want to pass their major tax bill this week, but they’re still negotiating some of the trickiest provisions, leaving rank-and-file members to question how quickly they can finish work.

Senate Majority Leader John Thune (R-S.D.) told reporters members are “on schedule” to vote by the end of the week, Lillianna Byington reports. But members were still negotiating a state-and-local tax deduction measure and provisions on Medicaid late yesterday.

Those negotiations — combined with further rulings by the Senate parliamentarian and an upcoming “vote-a-rama” with plenty of Democratic amendments — could drag consideration into the weekend, even if negotiations go relatively smoothly.

  • “The bill’s held together with happy thoughts and spit,” Sen. John Kennedy (R-La.) told reporters yesterday. “But step one is to tell us what’s in the bill, and I’m not going to vote to proceed to a bill if I don’t know what’s in it.”

SALT Offer: The bill’s state-and-local tax deduction is still fluid. House Republicans passed a measure with a $40,000 deduction, while Senate Republicans initially left it at the current level of $10,000. Sen. Markwayne Mullin (R-Okla.) said he’ll make an offer to House members to settle for a $40,000 deduction with a lower income threshold, which he didn’t specify. Read More

Rural Hospitals: Lawmakers had discussed a fund to help rural hospitals, a salve to offset the effects of changes to the Medicaid provider tax. But those negotiations may not have gone far, as of late yesterday.

Sen. Josh Hawley (R-Mo.), a key potential holdout who has called for measures to help rural hospitals, said he supports the idea in question, but he’s not sure of the specifics.

  • “I don’t know anything — I don’t even know if it’s real,” Hawley said yesterday of the negotiations. “I think that’s a good idea. Is it sufficient? I don’t know.”

Energy Tax Credits: Sen. Thom Tillis (R-Tenn.) said lawmakers have had good negotiations over the last few days, but they’re not sure about the timing of the vote, partly because they’re still waiting on rulings from the parliamentarian regarding which portions of the bill comply with “Byrd rule” restrictions. Talks on Inflation Reduction Act clean-energy tax credits have been productive, though health-care measures still need work, he said.

  • “We made great progress on the IRA energy credits, and we’ve got some work to do on Medicaid,” Tillis told reporters yesterday.

First Appropriations Floor Vote: House Republicans aim to pass their first government-funding bill for fiscal 2026 this week, covering Military Construction-VA appropriations.

The House Rules Committee made 32 amendments in order for floor votes. Many of them call for changes to committee report language or make minor changes to funding levels, but a few GOP provisions address hot-button issues.

  • Rep. Marjorie Taylor Greene (R-Ga.) offered a measure to strike funding for the North Atlantic Treaty Organization.
  • Rep. Brian Mast (R-Fla.) offered a measure to bar Veterans Affairs officials from interfering with veterans participating in a state-approved medical marijuana program.
  • Rep. Keith Self (R-Texas) would add language clarifying that restrictions on “gender affirming care” apply to “any social, psychological, behavioral, or medical intervention designed to support and affirm an individual’s gender identity when it conflicts with the gender assigned to the individual at birth.”

Agriculture-FDA Markup: House appropriators advanced their Agriculture-FDA funding bill through the full committee late last night after a second marathon markup. The markup started June 12 and went late into the night before members postponed the rest of the amendments, which they resumed yesterday evening. Read More

Leg Branch Advances: The House Appropriations Legislative Branch Subcommittee advanced their 2026 fiscal year funding bill yesterday in a 6-4 party line vote, Ken Tran reports. Democrats criticized the bill’s massive cuts to the Government Accountability Office amid its investigations into the Trump administration over impoundment.

  • “It’s astonishing that for all the talk about finding and rooting out waste fraud and abuse, House Republicans would defund the watchdog that is tasked with precisely that role,” House Appropriations ranking member Rosa DeLauro (D-Conn.) said yesterday.

Homeland Security Markup: House lawmakers will mark up their Homeland Security funding bill in the full Appropriations Committee today, a meeting sure to spark fights over the Trump administration’s deportation campaign.

The funding bill’s committee report — a plain-English document with more information, published by appropriators — detailed lawmakers’ concerns about AI, deportations, illegal e-cigarettes, and more. Here’s a sample:

  • AI at the Border: GOP appropriators support the use of artificial intelligence to screen passenger vehicles and cargo at the US-Mexico border. But they’re concerned AI models “can be subverted, allowing criminals and terrorists to freely enter the country,” they wrote. They asked DHS officials for a briefing on threats stemming from generative AI or large language models.
  • ICE vs. States: They’re also unhappy with state and local law enforcement for not complying with Immigration and Customs Enforcement requests to detain people who are in the country illegally, they wrote. Members cited “the rising number of aliens apprehended for crimes committed after being released into the community.” They asked ICE for recommendations for congressional action to encourage state and local officials to comply, including blocking funding until ICE requests are honored.
  • Deportation Reports: Members are frustrated with the Trump administration for failing to send mandatory reports on the Homeland Security Department’s arrests, detentions, and removals. The panel directed the Office of Homeland Security Statistics to resume sending them monthly reports, which were required under a previous explanatory statement for fiscal 2023 funding bills.
  • E-Cigarette Inspections: Members directed Customs and Border Protection to increase random inspections for e-cigarettes and ports of entry to the US, saying lawmakers are “deeply concerned about the vast quantities of e-cigarettes being illegally imported” into the country.