The Senate parliamentarian just dealt a crushing blow to President Trump’s massive tax and spending plan, effectively derailing a key part of his agenda.
The so-called “Mega Bill” depends on huge tax cuts—about $4 trillion—paid for in part by deep cuts to Medicaid and food assistance programs. But the Senate’s rules expert, Elizabeth MacDonough, ruled that important Medicaid cuts in the bill break the chamber’s rules. That means Republicans can’t use their fast-track process to pass the bill without risking a filibuster.
This ruling threatens to tear apart the bill Republicans have been scrambling to finalize before their July Fourth deadline.
Sen. Jeff Merkley (D-Ore.) summed up the fight, saying, “Democrats are fighting back against Republicans’ plans to gut Medicaid, dismantle the Affordable Care Act, and kick kids, veterans, seniors, and folks with disabilities off of their health insurance — all to fund tax breaks for billionaires.”
The parliamentarian specifically rejected cuts aimed at Medicaid coverage for noncitizens, limits on gender-affirming care for children, and caps on “provider taxes” states use to fund Medicaid. Sen. Ron Wyden (D-Ore.) pointed out that Republicans must now remove over $250 billion in Medicaid cuts just to get the bill passed by a simple majority—the only way with just 53 GOP senators.
Republicans had already been trying to revise parts of the bill to win over moderate senators. Now, with less than two weeks left, they face a tougher road.
The one big Medicaid cut still intact is the “work requirement” for nondisabled adults.
GOP leaders have a few options: rework the rejected provisions and ask the parliamentarian to reconsider, find savings elsewhere, or attempt the risky move of overruling her. But Senate Majority Leader John Thune (R-S.D.) has said overruling the parliamentarian is off the table.
A GOP insider told HuffPost they are confident a solution will be found, calling the ruling “not as fatal as Dems are portraying it to be.”
MacDonough’s role is to enforce the Byrd Rule, which limits what can pass through budget reconciliation—a process that lets Senate Republicans avoid a Democratic filibuster.
She has previously struck down other GOP provisions, like blocking judges from holding the Trump administration in contempt and forcing states to pay more for food benefits.
The parliamentarian’s latest rejection of a cap on provider taxes would have saved hundreds of billions but faced pushback from GOP senators worried about rural hospitals closing.
Alabama Sen. Tommy Tuberville blasted the decision, calling MacDonough “The WOKE Senate Parliamentarian” and demanding she be fired, accusing her of pushing a “woke agenda.”
But Sen. John Kennedy (R-La.) said Republicans respect MacDonough and don’t expect her to be removed.
For now, the parliamentarian’s ruling has stalled a major part of Trump’s “Mega Bill,” forcing Republicans to rethink their strategy with the clock ticking. The setback shows how much power the Senate rules expert holds—and how difficult it is for Republicans to push through sweeping changes without broad support.
