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Key Medicaid provision in Trump’s big tax cut and spending bill is found to violate Senate rules

  • Senate Parliamentarian Elizabeth MacDonough struck key Medicaid provisions Thursday, blocking parts of Trump’s bill and delaying its July 4 passage.
  • Rooted in the Byrd Rule, the parliamentarian deemed Medicaid provisions non-budgetary, forcing Republicans to remove or rewrite key parts of the bill under reconciliation constraints.
  • Analysis shows that $89 billion in Medicaid savings depends on provider tax cuts, risking rural hospital closures and affecting nearly 8 million enrollees.
  • In response to the ruling, Senate Republicans met privately to find ways to rewrite key provisions and meet the July 4 deadline amid ongoing disagreements.
  • Beyond the July 4 deadline, the bill faces a looming debt ceiling later this summer, risking tax hikes on 80% of taxpayers if unresolved.
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Republican discord threatens Trump agenda

US President Donald Trump's signature domestic policy bill faced major roadblocks Friday, as his Republicans struggled to overcome differences and many of the spending cuts proposed to pay for his tax breaks were deemed against Senate rules.

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Donald Trump’s mega-law received a setback from the Senate at a key point: Medicaid reform. In the midst of negotiations between conservative Republicans and moderates, the Speaker of the Upper House ruled that this reform does not comply with the Byrd Rule. It is the internal rule used to filter out what provisions can be incorporated into budget reconciliation legislation, such as the “One Big, Beautiful Bill.” Read more]]>

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Las Vegas Sun broke the news in Las Vegas, United States on Thursday, June 26, 2025.
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