The Senate’s rule enforcer dealt a serious blow to Senate Republicans Thursday morning by ruling a key Medicaid provision within the megabill that advances President Donald Trump’s legislative agenda is out of order.
Senate Parliamentarian Elizabeth MacDonough discovered {that a} provision that cracks down on states’ use of well being care supplier taxes to assist gather extra Medicaid funding just isn’t in line with the foundations governing a bundle just like the “One Huge Lovely Invoice Act,” which senators are making adjustments to as Republicans work to fulfill Trump’s Fourth of July deadline for passage.
MacDonough’s ruling signifies that Senate Republicans might want to retool the supply or scrap it completely in the event that they need to transfer ahead with making an attempt to cross the invoice utilizing solely GOP votes.
The ruling is a serious setback for Republican management, who’re below strain to expeditiously transfer it to the Senate ground to fulfill the July deadline. This ruling would require probably main reworks of the invoice with comparatively little time to perform them. And regardless of how they modify it, leaders are prone to frustrate some faction of the Republican convention, which may imperil the invoice’s passage.
The Capitol Constructing is seen, Might 31, 2025, in Washington, D.C.
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The supplier tax credit score provisions had been rising as a thorn in management’s facet even earlier than MacDonough’s ruling.
For days, a small however essential faction of the Senate GOP convention has been elevating main flags about the way in which this lower to states’ Medicaid income may kneecap rural hospitals of their states. A variety of Republicans within the Senate have been threatening to withhold their votes for the bundle due to these adjustments to the supplier tax, so for that group, MacDonough’s ruling is probably going a welcome one.
However adjustments to the supplier tax price was one of many main ways in which Republicans deliberate to reform Medicaid and lower prices. Eliminating this provision will both increase the price of the bundle and threat rankling quite a lot of conservative Republicans, or pressure Senate Republicans again to the drafting board to seek out one other option to lower prices.
If adjustments are made, all eyes might be on a handful of Senate Republicans. Some adjustments might be deal breakers for these whose vote is essential to transferring the invoice over the end line.
Final weekend, MacDonough carefully scrutinized the House-passed bill for potential violations of the Senate’s guidelines. She has already issued quite a lot of choices that Democrats are touting as main victories.
This overview, known as the Byrd Bathtub — named after the late Sen. Robert Byrd, who helped institute the foundations governing price range reconciliation packages, continues to be underway within the Senate.
Any provision that MacDonough guidelines out of order with the Senate’s guidelines must be stripped or else the laws might be topic to the 60-vote threshold within the Senate. Republicans must keep away from this, or they will not be capable to cross the invoice.

Senate Majority Chief John Thune speaks with reporters following the weekly Senate Republican luncheon on the Capitol in Washington, June 24, 2025.
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There are already cries from some Republicans for Majority Chief John Thune to guide the Senate in a vote to overrule the parliamentarian. The Senate technically can overrule MacDonough with a easy majority of votes. However Thune has lengthy mentioned he will not overrule her as a result of he has vowed to not contact the Senate’s filibuster guidelines.
It is not but clear whether or not this ruling will pressure an additional delay in efforts by management to get the One Huge Lovely Invoice Act to the Senate ground late this week or over the weekend.