The Senate’s rule enforcer dealt a significant 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 further Medicaid funding just isn’t consistent with the principles governing a bundle just like the “One Large Stunning Invoice Act,” which senators are making modifications to as Republicans work to fulfill Trump’s Fourth of July deadline for passage.
MacDonough’s ruling implies that Senate Republicans might want to retool the availability or scrap it totally in the event that they wish to transfer ahead with trying to cross the invoice utilizing solely GOP votes.
The ruling is a significant 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 doubtlessly main reworks of the invoice with comparatively little time to perform them. And regardless of how they alter 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 aspect even earlier than MacDonough’s ruling.
For days, a small however crucial faction of the Senate GOP convention has been elevating main flags about the best way this lower to states’ Medicaid income would possibly kneecap rural hospitals of their states. Plenty of Republicans within the Senate had been threatening to withhold their votes for the bundle due to these modifications to the supplier tax, so for that group, MacDonough’s ruling is probably going a welcome one.
However modifications 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 search out one other approach to lower prices.
If modifications are made, all eyes might be on a handful of Senate Republicans. Some modifications might be deal breakers for these whose vote is crucial to shifting the invoice over the end line.
Final weekend, MacDonough carefully scrutinized the House-passed bill for attainable violations of the Senate’s guidelines. She has already issued quite a lot of choices that Democrats are touting as main victories.
This overview, referred to as the Byrd Bathtub — named after the late Sen. Robert Byrd, who helped institute the principles governing funds reconciliation packages, continues to be underway within the Senate.
Any provision that MacDonough guidelines out of order with the Senate’s guidelines should 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 of 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 isn’t but clear whether or not this ruling will pressure an extra delay in efforts by management to get the One Large Stunning Invoice Act to the Senate ground late this week or over the weekend.