June 26, 2025


GOP's Megabill on Shaky Ground as Internal Divides and Procedural Hurdles Mount

Senate Republicans are facing mounting challenges in advancing their critical domestic policy bill, with internal policy disputes and procedural issues causing significant delays. Despite presenting a united front, the reality within the party points to uncertainty and a lack of concrete timelines for the bill's progression.

Emerging from a closed-door meeting on Thursday, Senate Majority Leader John Thune was unable to provide a specific timeline for the bill, which is already behind the schedule that had been anticipated by the members. Senators are now bracing for potential weekend sessions, as the White House’s July 4 deadline looms, adding pressure but also serving as a crucial motivator.

The bill, which is central to the GOP's legislative agenda, has faced a recent setback from Senate Parliamentarian Elizabeth MacDonough. She indicated that significant portions of the bill, particularly those related to Medicaid, do not comply with the stringent rules required for passing the legislation via the special budget reconciliation process. This process allows passage with a simple majority but restricts content to budget-related items.

MacDonough’s ruling particularly targets the language around state provider taxes—a method many states use to draw more federal dollars for health care—which has emboldened a faction of moderate Republicans concerned about Medicaid provisions. Senate GOP leaders, however, remain optimistic about resolving these issues through what they describe as "technical" adjustments.

The bill’s complexities are further complicated by divisions within the party over its policy directions, especially regarding Medicaid and tax provisions. President Donald Trump, who has been relatively quiet on the bill following his return from Europe, is expected to intensify his involvement, emphasizing the bill's focus on tax cuts rather than Medicaid reductions.

Negotiations continue to be tense, with some Senate Republicans optimistic about resolving the parliamentarian’s concerns while others voice caution. The bill also faces challenges in the House, where changes made by the Senate are meeting resistance, particularly from Republicans in states with high local taxes.

As the Senate navigates these intricate legislative and political challenges, the outcome remains uncertain. The GOP's ability to unify around the bill and address the parliamentarian's concerns will be crucial in determining whether the legislation can advance before the impending deadline.