1000-page package

WASHINGTON — Republicans have suffered a sizable setback on one key aspect of President Trump’s big bill after their plans to gut the Consumer Finance Protection Bureau and other provisions from the Senate Banking Committee ran into procedural violations with the Senate parliamentarian.

Republicans in the Senate proposed zeroing out funding for the CFPB, the landmark agency set up in the aftermath of the 2008 financial crisis, to save $6.4 billion. The bureau had been designed as a way to better protect Americans from financial fraud, but has been opposed by many GOP lawmakers since its inception. The Trump administration has targeted the CFPB as an example of government overregulation and overreach.

The findings by the Senate parliamentarian’s office, which is working overtime scrubbing Trump’s overall bill to ensure it aligns with the chamber’s strict “Byrd Rule” processes, signal a tough road ahead. The most daunting questions are still to come, as GOP leadership rushes to muscle Trump’s signature package to the floor for votes by his Fourth of July deadline.

Sen. Tim Scott (R-S.C.), the chairman of the Banking Committee that drafted the provisions in question, said in a statement, “My colleagues and I remain committed to cutting wasteful spending at the CFPB and will continue working with the Senate parliamentarian on the Committee’s provisions.”

For Democrats, who have been fighting Trump’s 1,000-page package at every step, the parliamentarian’s advisory amounted to a significant win.

“Democrats fought back, and we will keep fighting back against this ugly bill,” said Sen. Elizabeth Warren of Massachusetts, the top Democrat on the Banking Committee, who engineered the creation of the CFPB before she was elected to Congress.

Warren said that GOP proposals “are a reckless, dangerous attack on consumers and would lead to more Americans being tricked and trapped by giant financial institutions and put the stability of our entire financial system at risk — all to hand out tax breaks to billionaires.”

The parliamentarian’s rulings, while advisory, are rarely, if ever ignored.

With the majority in Congress, Republicans have been drafting a sweeping package that extends some $4.5-trillion tax cuts Trump approved during his first term, in 2017, that otherwise expire at the end of the year. It adds $350 billion to national security, including billions for Trump’s mass deportation agenda. And it slashes some $1 trillion from Medicaid, food stamps and other government programs.

All told, the package is estimated to add at least $2.4 trillion to the nation’s deficits over the decade, and leave 10.9 million more people without healthcare coverage, according to the nonpartisan Congressional Budget Office’s review of the House-passed package, which is now undergoing revisions in the Senate.

The parliamentarian’s office is responsible for determining if the package adheres to the Byrd Rule, named after the late Sen. Robert Byrd of West Virginia, who was considered one of the masters of Senate procedure. The rule essentially bars policy matters from being addressed in the budget reconciliation process.

Senate GOP leaders are using the budget reconciliation process, which is increasingly how big bills move through Congress, because it allows passage on a simple majority vote, rather than face a filibuster with the higher 60-vote threshold.

But if any of the bill’s provisions violate the Byrd Rule, that means they can be challenged at the tougher 60-vote threshold, which is a tall order in the 53-47 Senate. Leaders are often forced to strip those proposals from the package, even though doing so risks losing support from lawmakers who championed those provisions.

One of the biggest questions ahead for the parliamentarian will be over the Senate GOP’s proposal to use “current policy” as opposed to “current law” to determine the baseline budget and whether the overall package adds significantly to deficits.

Already the Senate parliamentarian’s office has waded through several titles of Trump’s big bill, including those from the Senate Armed Services Committee and Senate Energy & Public Works Committee.

The Banking panel offered a modest bill, just eight pages, and much of it was deemed out of compliance.

The parliamentarian found that in addition to gutting the CFPB, other provisions aimed at rolling back entities put in place after the 2008 financial crisis would violate the Byrd Rule. Those include a GOP provision to limit the Financial Research Fund, which was set up to conduct analysis, saving nearly $300 million; and another to shift the Public Company Accounting Oversight Board, which conducts oversight of accounting firms, to the Securities and Exchange Commission and terminate positions, saving $773 million.

The GOP plan to change the pay schedule for employees at the Federal Reserve, saving $1.4 billion, was also determined to be in violation of the Byrd Rule.

The parliamentarian’s office also raised Byrd Rule violations over GOP proposals to repeal certain aspects of the Inflation Reduction Act, including on emission standards for some model year 2027 light-duty and medium-duty vehicles.

Mascaro writes for the Associated Press. AP writer Mary Clare Jalonick contributed to this report.

WASHINGTON — Senate Republicans on Monday proposed deeper Medicaid cuts, including new work requirements for parents of teens, as a way to offset the costs of making President Trump’s tax breaks more permanent in draft legislation unveiled for his “Big Beautiful Bill.”

The proposals from Republicans keep in place the current $10,000 deduction of state and local taxes, called SALT, drawing quick blowback from GOP lawmakers from New York and other high-tax states, who fought for a $40,000 cap in the House-passed bill. Senators insisted negotiations continue.

The Senate draft also enhances Trump’s proposed new tax break for seniors, with a bigger $6,000 deduction for low- to moderate-income senior households earning no more than $75,000 a year for singles, $150,000 for couples.

All told, the text unveiled by the Senate Finance Committee’s Republicans provides the most comprehensive look yet at changes the GOP senators want to make to the 1,000-page package approved by House Republicans last month. GOP leaders are pushing to fast-track the bill for a vote by Trump’s Fourth of July deadline.

Sen. Mike Crapo (R-Idaho), the chairman, said the proposal would prevent a tax hike and achieve “significant savings” by slashing green energy funds “and targeting waste, fraud and abuse.”

It comes as Americans broadly support levels of funding for popular safety net programs, according to the poll from the Associated Press-NORC Center for Public Affairs Research. Many Americans see Medicaid and food assistance programs as underfunded.

What’s in the “Big Beautiful Bill” so far

Trump’s “Big Beautiful Bill” is the centerpiece of his domestic policy agenda, a hodgepodge of GOP priorities that Republicans are trying to swiftly pass over unified opposition from Democrats — a tall order for the slow-moving Senate.

Fundamental to the package is the extension of some $4.5 trillion in tax breaks approved during his first term, in 2017, that are expiring this year if Congress fails to act. There are also new ones, including no taxes on tips, as well as more than $1 trillion in program cuts.

After the House passed its version, the nonpartisan Congressional Budget Office estimated the bill would add $2.4 trillion to the nation’s deficits over the decade, and leave 10.9 million more people without health insurance, due largely to the proposed new work requirements and other changes.

The biggest tax breaks, some $12,000 a year, would go to the wealthiest households, CBO said, while the poorest would see a tax hike of roughly $1,600. Middle-income households would see tax breaks of $500 to $1,000 a year, CBO said.

Both the House and Senate packages are eyeing a massive $350-billion buildup of Homeland Security and Pentagon funds, including some $175 billion for Trump’s mass deportation efforts, such as the hiring of 10,000 more officers for Immigration and Customs Enforcement, or ICE.

This comes as protests over deporting migrants have erupted nationwide — including the stunning handcuffing of Sen. Alex Padilla last week in Los Angeles — and as deficit hawks such as Kentucky Sen. Rand Paul are questioning the vast spending on Homeland Security.

Senate Democratic Leader Charles E. Schumer warned that the Senate GOP’s draft “cuts to Medicaid are deeper and more devastating than even the Republican House’s disaster of a bill.”

Trade-offs in bill risk GOP support

As the package now moves to the Senate, the changes to Medicaid, SALT and green energy programs are part of a series of trade-offs GOP leaders are making as they try to push the package to passage with their slim majorities, with almost no votes to spare.

But criticism of the Senate’s version came quickly after House Speaker Mike Johnson warned senators of making substantial changes.

“We have been crystal clear that the SALT deal we negotiated in good faith with the Speaker and the White House must remain in the final bill,” the co-chairs of the House SALT caucus, Reps. Young Kim (R-Calif.) and Andrew Garbarino (R-N.Y.), said in a joint statement Monday.

Republican Rep. Nicole Malliotakis of New York posted on X that the $10,000 cap in the Senate bill was not only insulting, but a “slap in the face to the Republican districts that delivered our majority and trifecta” with the White House.

Medicaid and green energy cuts

Some of the largest cost savings in the package come from the GOP plan to impose new work requirements on able-bodied single adults, ages 18 to 64 and without dependents, who receive Medicaid, the health care program used by 80 million Americans.

While the House first proposed the new Medicaid work requirement, it exempted parents with dependents. The Senate’s version broadens the requirement to include parents of children older than 14, as part of their effort to combat waste in the program and push personal responsibility.

Already, the Republicans had proposed expanding work requirements in the Supplemental Nutrition Assistance Program, known as SNAP, to include older Americans up to age 64 and parents of school-age children older than 10. The House had imposed the requirement on parents of children older than 7.

People would need to work 80 hours a month or be engaged in a community service program to qualify.

One Republican, Missouri Sen. Josh Hawley, has joined a few others pushing to save Medicaid from steep cuts — including to the so-called provider tax that almost all states levy on hospitals as a way to help fund their programs.

The Senate plan proposes phasing down that provider tax, which is now up to 6%. Starting in 2027, the Senate looks to gradually lower that threshold until it reaches 3.5% in 2031, with exceptions for nursing homes and intermediate care facilities.

Hawley slammed the Senate bill’s changes on the provider tax. “This needs a lot of work. It’s really concerning and I’m really surprised by it,” he said. “Rural hospitals are going to be in bad shape.”

The Senate also keeps in place the House’s proposed new $35-per-service co-pay imposed on some Medicaid patients who earn more than the poverty line, which is about $32,000 a year for a family of four, with exceptions for some primary, prenatal, pediatric and emergency room care.

And Senate Republicans are seeking a slower phaseout of some Biden-era green energy tax breaks to allow continued develop of wind, solar and other projects that the most conservative Republicans in Congress want to end more quickly. Tax breaks for electric vehicles would be immediately eliminated.

Conservative Republicans say the cuts overall don’t go far enough, and they oppose the bill’s provision to raise the national debt limit by $5 trillion to allow more borrowing to pay the bills.

“We’ve got a ways to go on this one,” said Sen. Ron Johnson (R-Wis.).

Mascaro and Freking write for the Associated Press. AP writers Mary Clare Jalonick and Matthew Daly contributed to this report.