Senate Republicans Face Setback on Medicaid Changes in Budget Bill

Senate Republicans faced a setback as the Senate parliamentarian ruled against a key provision in their tax and spending package. The provision aimed to change how states tax Medicaid providers to offset the bill's costs. The ruling stated that the change did not comply with the rules for passing the bill with a simple majority.

The parliamentarian also rejected a proposed $15 billion rural health stabilization fund to address the slashing of a provider tax critical for many states. Democrats hailed the ruling as a win, claiming it removed over $250 billion in health care cuts from the bill.

Other contentious provisions in the bill include directives on Medicaid provider taxes, coverage for gender affirming care, and Medicaid recipients who are not U.S. citizens. Senate Republicans are working to find solutions to these issues amid pressure to pass the bill by the July 4th deadline.

The legislation, a cornerstone of Trump's domestic agenda, faces challenges in resolving funding for rural hospitals and other key issues. Senate GOP leaders are also awaiting a review of major tax provisions to ensure compliance with budget regulations.

Debates continue over energy tax credits, changes to SNAP, and provisions on public lands. Senate Republicans are also addressing differences with House GOP lawmakers over the SALT deduction and must navigate potential opposition from fiscal hawks in the Senate.

Despite these challenges, Senate Majority Leader Thune remains optimistic that political pressure will rally Republicans to support the bill.