GOP senators urge Trump administration to reverse $6 billion education funding freeze

A total of 10 Republican senators are urging the Trump administration to reverse its decision. to withhold more than $6 billion in federal funds for education programs already appropriated by Congress.

"The decision to withhold this funding is contrary to President Trump's goal of returning K-12 education to the states," the Republican senators wrote in a letter to Office of Management and Budget Director Russ Vought, obtained by ABC News.

"The funding goes directly to states and local school districts, where local leaders decide how this funding is spent, because as we know, local communities know how to best serve students and families," the letter stated.

MORE: What do Department of Education cuts mean for American students?

Federal aid for schools is typically allocated each year on July 1, but aid was paused on June 30 in an ongoing review of education funding , according to an Education Department memo sent to Congress obtained by ABC News.

Sen. Shelley Moore Capito, R-W. Va., led the group of senators who signed the letter--a rare rebuke by Republicans of the president's education policies.

Capito, who chairs the Senate Appropriations subcommittee on Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS), is a strong supporter of Education Secretary Linda McMahon and her mission to reform the Department of Education.

The letter encourages Vought to release the funding to states, noting that it was already approved by Congress in a short-term spending bill this past spring.

The funding that has been paused includes grants for after-school care, student support, English language and adult education, among other programs.

MORE: Trump administration halts $6B in education programs before the school year

The senators' letter comes just days after about two dozen state attorneys general and Democratic governors sued the Trump administration over the funding review that has left many education leaders scrambling as the school year approaches.

"We want to see students in our states and across the country thrive, whether they are adult learners, students who speak English as a second language, or students who need after-school care so that their parents can work. We believe you share the same goal," the senators' letter stated.

In Alabama, where Trump won overwhelmingly in 2024, the Superintendent of Education, Eric Mackey, told ABC News that he is frustrated the administration decided to halt congressionally appropriated funding in the middle of the summer.

MORE: Supreme Court allows Trump to continue effort to weaken the Education Department

We're talking about transparency and consistency and making good on a promise," Mackey told ABC News. "We're talking about programs that Congress has already authorized and just three weeks before school starts, you just find that the check is not coming.

The Education Department referred questions about the funding pause to OMB, which told ABC News that many of the programs "grossly misused" government funds to promote a "radical left-wing agenda."

The Impoundment Control Act -- a law that states Congress must consider and review executive branch withholdings of budget authorities -- requires OMB to specify the duration of proposed partial-year deferrals.

In a statement to ABC News, an OMB spokesman said no decisions have yet been made.

We share your concern about taxpayer money going to fund radical left-wing programs," the senators wrote in the letter. "However, we do not believe that is happening with these funds.

MORE: States sue over 'clearly against the law' Trump $6B education funding pause

Meanwhile, the Supreme Court's decision on Monday to lift an injunction blocking the administration's efforts to weaken the Education Department allowed the administration to take a step toward fulfilling Trump's goal of dismantling the agency completely.

Such a move would require congressional approval.

South Dakota Sen. Mike Rounds, one of the senators who signed the letter, introduced legislation called "Returning Education to Our States," which would block grant funds to states and redistribute the department's statutory functions to other agencies.

The proposed legislation hasn't been taken up in the Senate this year and would likely fail without 60 Senate 'yes' votes.

The other Republican senators who signed the letter were: Susan Collins, of Maine; John Boozman, of Arkansas; Katie Britt, of Alabama; Deb Fischer, of Nebraska; John Hoeven, of North Dakota; Jim Justice, of West Virginia; Mitch McConnell, of Kentucky; and Lisa Murkowski, of Alaska.

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Democrats view Trump's large bill as crucial to their comeback. It may not be so easy.

WINDSOR HEIGHTS, Iowa (AP) — It is big and it is beautiful, President Donald Trump says.

But for many Democratic leaders, the tax break and spending cut package Passed by Trump's Republican allies in Congress on Thursday, this represents the key to the Democratic Party's resurgence.

Even before the final vote, Democratic officials were finalizing ambitious plans for rallies, voter registration drives, attack ads, bus tours, and even a multiday vigil, all intended to highlight the most controversial elements of Trump’s “big beautiful” bill: deep cuts to the nation’s safety net that will leave nearly 12 million more people without health coverage and millions of others without food assistance, according to the nonpartisan Congressional Budget Office .

In political battlegrounds across Alaska and Iowa, Pennsylvania and California, Democrats have begun to use the bill against Republicans. Democrats are promising that the Republican president's domestic policy achievement to date will be the defining issue of every major election between now and next fall's midterms.

One thing is abundantly clear: Republicans own this mess and it's an albatross around their necks heading into the midterms," Democratic National Committee Chair Ken Martin told The Associated Press. "This is the least popular legislation in modern history, and the more voters learn about it, the more they hate it. That's a clear directive for Democrats -- we're going to make sure every single voter knows who is responsible.

Even with early public opinion on their side, however, it’s far from certain that the legislation will be the political winner Democrats hope.

The Democratic brand remains deeply unpopular, the party has no clear leader, its message is muddled, and core elements of the Democratic base are frustrated and drifting. Some of the bill's provisions will not take effect until after the 2026 election, so voters may not have felt the full impact by the time they vote. At the same time, it's unclear how many voters are paying attention to the Washington-based debate.

The Democratic super political action committee Priorities USA warned this week that Democrats must work harder if they want their message to break through.

“We can’t just assume that because we’re angry, the voters we need to communicate with are angry. Everyone needs to step up and realize the enormous challenge that’s in front of us,” executive director Danielle Butterfield said. “We’re nowhere near a good starting place.”

The bill provides for $4.5 trillion in tax breaks that were enacted in Trump's first term and would have expired if Congress failed to act. New breaks will allow workers to deduct tips and overtime pay. There are $1.2 trillion in cuts to Medicaid and food stamps and a major rollback of green energy investments. nonpartisan Congressional Budget Office estimates the package will add $3.3 trillion to the deficit over the decade.

Democrats' challenge on display

Privately, some Democrats conceded that Republicans were smart to pass the bill on the eve of a holiday weekend when fewer voters would be paying attention.

As some Democrats in Washington predicted a political backlash across America, the response was somewhat muted Thursday at a Democratic event in Iowa, barely 10 miles from the State Fairgrounds where Trump later drew thousands for an evening rally.

An audience of roughly 100 people listened as local Democratic officials criticized the legislation and urged voters to remove Republican Rep. Zach Nunn, the local congressman, from office for supporting it.

Audience member Michael Rieck, 69, said Iowa Democrats left him a message about the rally, but when he went online to learn more, "there was nothing."

I texted back to them that I didn't see any advertisement," he said. "They slowly corrected that. I'm still not impressed with what they did to advertise this event.

Rieck said he wants to see different factions of the party better coordinate their message.

Progressive activists were traveling through Minnesota in a large green bus as part of Fair Share America’s 29-stop "Stop the Billionaire Giveaway" tour. The group is targeting Republican-led congressional districts where elected officials have largely ceased holding in-person town halls with constituents.

We know we're fighting upstream," said Fair Share's executive director, Kristen Crowell. "But when people hear exactly what's in this bill, they're adamantly opposed.

What the polls say

The bill is generally unpopular, according to polling conducted throughout the month of June, although some individual provisions are popular.

For example, a Washington Post/Ipsos poll found that majorities of U.S. adults support increasing the annual child tax credit and eliminating taxes on earnings from tips, and about half support work requirements for some adults who receive Medicaid.

On the other hand, the poll found that majorities oppose reducing federal funding for food assistance to low-income families and spending about $45 billion to build and maintain migrant detention centers.

The price tag could be a sticking point. About 6 in 10 U.S. adults in the poll said it was "unacceptable" that the bill is expected to increase the U.S. national debt, currently at $36 trillion, by about $3 trillion over the next decade.

But polling indicates that most Americans aren't paying attention to the nuances of the bill, either.

The Washington Post/Ipsos poll found that only about one-third of U.S. adults have heard "a great deal" or "a good amount" about it.

Democrats are planning a summer of organizing

The Democratic National Committee and its allies plan an "organizing summer" that will feature town halls, training, and voter registration drives in at least 35 competitive congressional districts. The message will be focused heavily on Trump's bill.

Kansas Gov. Laura Kelly, who leads the Democratic Governors Association, said her party must keep the bill's contents at the forefront of people's minds to ensure it's an issue in the midterms and even the next presidential election in 2028.

"We'll just have to keep that on the radar," she said.

Progressive groups are planning a "Families First" day of action for July 26 in all 50 states. They will highlight people hurt by the new Medicaid cuts and will hold a 60-hour vigil at the U.S. Capitol.

"We have made a promise to each other and to future generations that there will be a safety net in place when we need it. And this is what's being ripped away. And people will not stand for it," said one of the Families First organizers, Ai-jen Poo, president of the National Domestic Workers Alliance.

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What is in Trump's tax and spending bill that will soon become law?

Republicans muscled President Donald Trump's tax and spending cut bill through the House on Thursday, the final step necessary to get the proposal to his desk by the GOP's self-imposed deadline of July 4th.

At nearly 900 pages, the legislation is a sprawling collection of tax breaks, spending cuts and other Republican priorities, including new money for national defence and deportations.

Democrats united against the legislation, but were powerless to stop it as long as Republicans stayed united. The Senate passed the bill, with Vice President JD Vance casting the tiebreaking vote. The House passed an earlier version of the bill in May with only one vote to spare. It passed the final version with a 218 to 214 split.

Here's the latest on what's in the bill and when some of its provisions go into effect.

GOP bill includes reductions for businesses and new tax breaks

Republicans say the bill is crucial because there would be a massive tax increase after December when tax breaks from Trump's first term expire. The legislation contains about $4.5 trillion (€3.8tn) in tax cuts.

The existing tax rates and brackets would become permanent under the bill, solidifying the tax cuts approved in Trump's first term.

It would temporarily add new tax deductions on tips, overtime, and auto loans. There's also a $6,000 deduction for older adults who earn no more than $75,000 a year (€63,000), which is a nod to his pledge to end taxes on Social Security benefits.

It would increase the $2,000 child tax credit to $2,200 (€1,900). Millions of families at lower income levels would not receive the full credit.

A cap on state and local deductions, called SALT, would quadruple to $40,000 (€34,000) for five years. It's a provision important to New York and other high tax states, though the House wanted it to last for 10 years.

There are numerous business-related tax cuts, including allowing companies to immediately deduct 100% of the cost of equipment and research. Supporters argue that this will stimulate economic growth.

The wealthiest households would see a $12,000 (€10,000) increase from the legislation, and the bill would cost the poorest people $1,600 (€1,400) a year, mainly due to reductions in Medicaid and food aid, according to the non-partisan Congressional Budget Office analysis of the House's version.

Legislation funds the border wall and deportations

The bill would provide some $350 billion (€300bn) for Trump's border and national security agenda, including for the US-Mexico border wall and for 100,000 migrant detention facility beds, as he aims to fulfill his promise of the largest mass deportation operation in US history.

Money would go for hiring 10,000 new Immigration and Customs Enforcement officers, with $10,000 (€8,500) signing bonuses and a surge of Border Patrol officers, as well. The goal is to deport some 1 million people per year.

To help pay for it, immigrants would face various new fees, including when seeking asylum protections.

For the Pentagon, the bill would provide billions for shipbuilding, munitions systems, and quality of life measures for servicemen and women, as well as $25 billion (€21 billion) for the development of the Golden Dome missile defense system. The Defense Department would have $1 billion for border security.

Medicaid and SNAP face significant cuts.

To help partly offset the lost tax revenue and new spending, Republicans aim to cut back on Medicaid and food assistance for people below the poverty line.

Republicans argue they are trying to rightsize the safety net programs for the population they were initially designed to serve, mainly pregnant women, the disabled and children, and root out what they describe as waste, fraud and abuse.

The package includes new 80-hour-a-month work requirements for many adults receiving Medicaid and food stamps, including older individuals up to age 65. Parents of children aged 14 and older would be required to meet the program's work requirements.

There is also a proposed new $35 co-payment that may be charged to patients utilizing Medicaid services.

More than 71 million people rely on Medicaid, which expanded under Obama's Affordable Care Act, and 40 million use the Supplemental Nutrition Assistance Program. Most already work, according to analysts.

The Congressional Budget Office estimates that 11.8 million more Americans would become uninsured by 2034 if the bill became law, and 3 million more would not qualify for food stamps, also known as SNAP benefits.

Republicans are seeking to have states cover part of the cost for SNAP benefits. At present, all benefit costs are funded by the federal government. Under the bill, starting in 2028, states will be required to contribute a fixed percentage of those costs if their payment error rate exceeds 6%. Payment errors include both underpayments and overpayments.

"Big beautiful" bill slashes clean energy tax credits

Republicans are proposing to dramatically roll back tax breaks designed to boost clean energy projects fueled by renewable sources such as solar and wind. The tax breaks were a central component of President Joe Biden's 2022 landmark bill focused on addressing climate change and lowering health care costs.

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Democratic Senator for Oregon Ron Wyden went so far as to call the GOP provisions a "death sentence for America's wind and solar industries and an inevitable hike in utility bills".

A tax break for people who buy new or used electric vehicles would expire on 30 September of this year, instead of at the end of 2032 under current law.

Meanwhile, a tax credit for the production of critical materials will be expanded to include metallurgical coal used in steelmaking.

Bill reduces a gun tax and restricts Medicaid access for abortion providers

Several additional provisions reflect other Republican priorities.

The bill creates a new children's savings program, called Trump Accounts, with a potential $1,000 (€850) deposit from the Treasury.

The Senate allocated $40 million (€34 million) to establish Trump's long-sought "National Garden of American Heroes."

There's a new excise tax on university endowments and a new tax on remittances, or transfers of money that people in the US send abroad.

A $200 (€170) tax on gun silencers and short-barreled rifles and shotguns was eliminated.

One provision prohibits Medicaid payments to family planning providers that perform abortions, specifically Planned Parenthood, for one year.

Additionally, a provision would increase the nation's debt limit by $5 trillion (€4.2 trillion) to allow continued borrowing to pay already accrued bills.

State AI regulations removed from bill following a Republican outcry

The Senate overwhelmingly revolted against a proposal meant to deter states from regulating artificial intelligence. Republican governors across the country asked for the moratorium to be removed and the Senate voted to do so with a resounding 99-1 vote.

A provision was thrown in at the final hours that will provide $10 billion annually to rural hospitals for five years, or $50 billion in total (€42 billion). The Senate bill had originally provided $25 billion for the program, but that number was upped to win over holdout GOP senators and a coalition of House Republicans warning that reduced Medicaid provider taxes would hurt rural hospitals.

The amended bill also removed a new tax on wind and solar projects that utilize a certain percentage of components from China.

Final price tag: GOP bill could add $3.3tn to deficit

Altogether, the Congressional Budget Office projects that the bill would increase federal deficits over the next 10 years by nearly $3.3 trillion (€2.8 trillion) from 2025 to 2034. An increase in public debt would likely make government borrowing more expensive as investors may view Treasuries as a riskier proposition.

Senate Republicans nonetheless reject the projections by proposing a unique strategy of not counting the existing tax breaks as a new cost because those breaks are already "current policy". Republican senators say the Senate Budget Committee chairman has the authority to set the baseline for the preferred approach.

According to the alternative Senate GOP view, the bill would reduce deficits by nearly half a trillion dollars over the coming decade, the CBO said.

Democrats say this is "magic math" that obscures the true costs of the tax breaks. Some non-partisan groups worried about the country's fiscal trajectory are siding with Democrats in that regard. The Committee for a Responsible Federal Budget says Senate Republicans were employing an "accounting gimmick that would make Enron executives blush."

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"Morally and fiscally bankrupt": House Republican scorches Trump's bill ahead of vote

The House of Representatives is poised to vote soon on H.R. 1 — President Donald Trump's "One Big Beautiful Bill Act," or BBB — and one Republican member is indicating that he aims to defeat it.

In a post to his official X account Rep. Keith Self (R-Texas) criticized the Senate's version of H.R. 1, including an infographic outlining the differences between the version the House passed by a 215-214 vote (which Self supported) and the version narrowly passed by the GOP-controlled Senate with a tie-breaking vote from Vice President JD Vance. Self's post indicates he would not support the Senate bill in its current form, meaning that a bill incorporating new amendments would need to return to the Senate before it could reach Trump's desk.

"The Senate’s version of the BBB is morally and fiscally bankrupt," Self tweeted. "We must get back closer to the House-passed version."

READ MORE: 'Does he know?' Trump apparently unaware his bill cuts $1 trillion from Medicaid

The infographic Self included with his post suggested the House's version of the bill was more draconian, arguing that it "defunds Planned Parenthood for 10 years," "terminates 'green new scam' subsidies" and "creates a national school choice voucher program." And according to Self's infographic, the Senate bill "pauses federal funding for Planned Parenthood for only one year," "waters down Medicaid reforms" and "leaves blue state students in failing schools with 'optional' school choice."

But according to the nonpartisan Congressional Budget Office (CBO), the Senate's version actually cuts Medicaid by a higher amount than the House bill, with more than $1 trillion in funding cuts over the next decade. The CBO also estimated that nearly 12 million Americans would lose their health insurance as a direct result of the Senate bill's Medicaid cuts.

Self has also criticized the BBB's soaring new levels of spending (mostly on extending tax cuts that primarily benefit the richest Americans ), calling the legislation " fiscally criminal " for adding more than $1 trillion to the deficit. This has been a repeated refrain by the far-right House Freedom Caucus (of which Self is a member), which recently circulated a memo attacking the Senate version of the BBB for its extremely high deficit spending.

Trump posted to Truth Social on Wednesday evening that he expects the House to pass the legislation overnight, asserting that the House Republican Conference was "united." On Tuesday, Approximately 20 House Republicans Indicated they would not support the Senate legislation, including several of Trump's strongest supporters in Congress such as Reps. Andy Biggs (R-Ariz.) and Andy Ogles (R-Tenn.) among those opposing it. House Speaker Mike Johnson (R-La.) can only afford to lose three Republicans if he hopes to pass a bill along party lines.

READ MORE: 'Critical': GOP representative urges Democratic governor to act 'without delay' to save hospitals from Trump bill

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Senate vote-a-rama to pass Trump's $3.3 trillion bill extends into second day

By David Morgan, Richard Cowan and Bo Erickson

WASHINGTON (newsrealtime) - U.S. Senate Republicans in the early hours of Tuesday morning were still trying to pass President Donald Trump's sweeping tax-cut and spending bill, despite divisions within the party about its expected $3.3 trillion hit to the nation's debt pile.

Senators were voting in a marathon session known as a "vote-a-rama," featuring a series of amendments by Republicans and the minority Democrats, part of the arcane process Republicans are using to bypass Senate rules that normally require 60 of the chamber's 100 members to agree on legislation.

Beginning on Monday and ongoing for over 16 hours, it was still unclear how long the voting would last. Lawmakers said the process had been held up partly by the need to determine whether amendments complied with special budgetary rules.

Shortly after midnight, Senate Majority Leader John Thune told reporters the vote-a-rama was "hopefully on the home stretch and then we'll see where the votes are."

Republicans can afford to lose no more than three votes in either chamber to pass a bill that the Democrats are united in opposing.

The nonpartisan Congressional Budget Office released its assessment on Sunday of the bill's impact on the $36.2 trillion U.S. debt pile. The Senate version is estimated to cost $3.3 trillion, $800 billion more than the version passed last month in the House of Representatives.

Many Republicans dispute that claim, arguing that extending existing policy will not increase the debt. Nevertheless, international bond investors have incentives to diversify out of the U.S. Treasury market.

Meanwhile, Democrats hope the latest staggering figure could generate enough anxiety among fiscally minded conservatives to prompt them to break ranks with their party, which controls both chambers of Congress.

"This bill, as we have said for months, steals people's healthcare, jacks up their electricity bill to pay for tax breaks for billionaires," Democratic Senate Minority Leader Chuck Schumer said in a speech to the Senate.

Thune countered that the tax cuts will help families and small businesses, as he defended spending reductions to social safety net programs.

He said Medicaid was growing at an unsustainable rate and there were some improvements and reforms to make it more efficient.

The Senate narrowly advanced the tax-cut, immigration, border, and military spending bill in a procedural vote late on Saturday, voting 51-49 to open debate on the 940-page megabill.

Trump wants the bill passed before the July 4 Independence Day holiday.

BILL POLITICS

Amendments proposed by Democratic senators, such as the proposed limits on Medicaid cuts, were rejected by the Republican majority.

Embedded in the Senate Republicans' bill are several hot-button political issues, such as a prohibition of Medicaid funding for a list of nearly 30 medical procedures related to gender transition, as well as an increase in immigration-related funding for criminal and gang checks for unaccompanied migrant children, including examinations of "gang-related tattoos" for children as young as 12 years old.

Early on Tuesday, Democrats and Republicans voted down an attempt by Republican Senator Susan Collins to cushion the impact of Medicaid cuts on rural health facilities by doubling federal support to $50 billion over five years and paying for the increase by raising the top federal tax rate. The measure still drew support from 18 Republicans.

Elon Musk, who was previously appointed by Trump to lead his government cost-cutting plan before the two had a public falling-out in June over the budget bill, threatened on Monday to target Republicans ahead of the 2026 midterm election.

"Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!" Musk posted on X.

He also reiterated his interest in a new political party and accused lawmakers in both parties of belonging to the "porky pig party," a dig at government spending levels.

The U.S. Chamber of Commerce, which says the majority of its members are small businesses, backs the bill.

However, John Arensmeyer, who represents more than 85,000 small enterprises at the Small Business Majority, cautioned that the business tax relief is currently skewed toward the wealthiest, top 5% of small businesses.

DEBT CEILING DEADLINE

The Republican measure contains a $5 trillion debt ceiling increase - $1 trillion more than the House's bill - but failure to pass some version would present lawmakers with a serious deadline later this summer, when the Treasury Department could come close to exhausting its borrowing authority and thus risk a devastating default.

The debt limit increase has caused Senator Rand Paul of Kentucky to come out in opposition to the bill, joining fellow Republican Tillis, who decried its cuts to Medicaid and clean energy initiatives.

According to the Congressional Budget Office, the Senate bill would result in about 11.8 million additional uninsured people, surpassing estimates for the House's version.

If the Senate succeeds in passing the bill, it will then go to the House, where members are also divided, with some angry about its cost and others worried about cuts to the Medicaid program.

The megabill would extend the 2017 tax cuts that were Trump's main legislative achievement during his first term as president, cut other taxes and boost spending on the military and border security.

Senate Republicans, who reject the budget office's estimates on the cost of the legislation, are set on using an alternative calculation method that does not factor in costs from extending the 2017 tax cuts.

Outside tax experts, such as Andrew Lautz from the nonpartisan think tank Bipartisan Policy Center, call it a "magic trick."

Using this calculation method, the Senate Republicans’ budget bill appears to cost substantially less and seems to save $500 billion, according to the BPC analysis.

(Writing by Richard Cowan and Costas Pitas; Editing by Michael Perry)

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Senate Pulls All-Nighter on Trump Tax Bill With GOP Divided

(newsrealtime) -- Senate Republican leaders continue to scramble for votes to pass Donald Trump's $3.3 trillion tax and spending bill as lingering intraparty disputes threaten to derail the legislative centerpiece of the president's domestic agenda.

Senators are expected to vote into Tuesday morning on a series of amendments to the massive bill, including proposed energy and health care provisions that could further fan the flames of division in a party split over cuts to social safety-net programs, clean energy tax credits from the previous administration and the overall cost of the bill.

There are currently eight major Republican holdouts, and Senate Majority Leader John Thune can afford to lose only three GOP senators and still pass the measure. Two — Rand Paul of Kentucky and Thom Tillis of North Carolina — are solidly against it, leaving very little room for error as the South Dakota Republican tries to get to 50 votes on the package.

Trump remained in contact with lawmakers Monday, as he was over the weekend, according to an administration official who said the White House remains optimistic that the president would get the legislation to sign by Friday. Just after midnight, Trump touted the bill once again on Truth Social, warning that failure to pass it would result in historic tax hikes.

Treasury Secretary Scott Bessent, who has been heavily involved in the negotiations, was also optimistic that the Senate would pass the bill in relatively short order.

Thune was less assured. Asked late Monday night if there was a breakthrough on the bill, he said, "This is a collaborative process."

Before the Senate even reaches a vote on the bill, lawmakers must navigate dozens of amendments, most of which will fail. However, the results of some of these votes will test Trump's limits as a dealmaker and could ultimately determine the fate of his bill.

"The Republicans are still in disarray," Senate Democratic Leader Chuck Schumer told reporters Monday.

Clean Energy

A group of Senate Republicans is pushing to soften An aggressive planned phase-out of subsidies for wind and solar projects under Trump's tax-and-spending package.

The amendment being circulated by Republican Joni Ernst of Iowa would also eliminate a proposed new excise tax included in the Senate bill, which would be imposed on wind and solar projects utilizing components from China and other "foreign entities of concern."

Ernst's language, supported by key holdout Lisa Murkowski of Alaska, broadly seeks to ease requirements governing which wind and solar projects can qualify for a clean electricity tax credit created under the 2022 Inflation Reduction Act.

Under the current version of the Senate bill, qualifying projects would have to be placed in service by the end of 2027 to qualify.

The Ernst amendment would shift to a more lenient timetable tied to the start of construction, allowing projects to qualify for at least some of the credit as long as they begin construction in 2026 or 2027.

If adopted, however, the change could alienate fiscal conservatives who have insisted on the more stringent requirements to qualify for the tax credits.

Rural Hospitals

Democrats, angered by the Medicaid cuts in the bill, voted to defeat an amendment from Republican Susan Collins of Maine that would have doubled the rural hospital fund in the bill to $50 billion, in exchange for a tax increase on some of the highest-earning Americans.

Many rural lawmakers are concerned that Medicaid cuts in the legislation would force hospitals in sparsely populated areas to close even with the new dedicated aid fund.

Ron Wyden, the top Democrat on the Senate Finance Committee, equated Collins' amendment to "a band aid on an amputation." Her amendment would have increased the top tax rate on individuals earning more than $25 million in a year to 39.6%.

Medicaid Cuts

A group of conservatives including Ron Johnson of Wisconsin, Cynthia Lummis of Wyoming, Rick Scott of Florida, and Mike Lee of Utah are offering an amendment to roll back the expansion of Medicaid under former President Barack Obama's Affordable Care Act.

Thune told reporters he'd back the amendment, but he said he couldn't guarantee it would pass.

If it fails, it remains unclear how this block of conservatives will vote on final passage. And if it passes, it could spark a rebellion from moderates like Collins and Murkowski.

"Wraparound" Amendment

As leaders continue to pressure members regarding the bill itself, they also need to ensure they have enough votes for a final "wraparound" amendment that adjusts the legislation before the vote on final passage.

Part of the calculus is to strip language that could threaten the bill's chances in the House, which is planning to vote on the Senate measure later this week. The House's own version of the bill passed by a single vote.

The Senate’s deeper Medicaid cuts—which caused Tillis to defect—will put pressure on swing-district Republicans, while Freedom Caucus hardliners are angry that the Senate bill would create larger deficits than the House-passed measure.

Meanwhile, at least one New York Republican — Nick LaLota — has said he’ll vote against the bill over a compromise on the state and local tax deduction. LaLota had supported the House measure.

But so far, unlike in 2017, Trump has been able to rally his party in the end, with only a few willing to resist the pressure to vote for his signature legislation.

--With assistance from Alicia Diaz, Jarrell Dillard, Emily Birnbaum, Cam Kettles, Yash Roy and Ken Tran.

(Updates starting in second paragraph)

More stories like this are available on newsrealtime

©2025 newsrealtimeL.P.

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Republicans and Democrats to battle for North Carolina Senate seat

Democrats just scored a massive new pickup opportunity in North Carolina. Republicans are determined not to let them have it.

GOP Sen. Thom Tillis's abrupt retirement announcement Sunday has blown the door open for potential juggernaut candidates on both sides of the aisle. Democratic former Gov. Roy Cooper plans to make a decision this summer on whether he'll mount a bid, according to a person close to him who was granted anonymity to disclose private conversations. Democrats widely believe the popular former governor would give the party its best chance of winning the competitive seat. Meanwhile, former Rep. Wiley Nickel is already running.

The GOP side could become a family affair for Donald Trump after he called for Tillis' ouster for voting against the megabill. Lara Trump, the president's daughter-in-law and former co-chair of the Republican National Committee, is "taking a strong look" at the race and would have the family's support if she decides to run, according to someone close to the Trumps who was granted anonymity to speak candidly about their internal discussions. Another person said Trump was still likely to meet with all the GOP candidates.

The White House also considers RNC Chair Michael Whatley, a former North Carolina GOP chair, a strong candidate, per a Republican operative granted anonymity to describe internal thinking. And some in Trump's orbit are promoting Rep. Pat Harrigan, according to a person close to his political operation.

When asked if he would support a successor, Tillis avoided answering directly on Sunday night. "Depending on whether or not President Trump endorses someone, it could be an open primary," Tillis said. "He could close it out and the party could get behind it, I suspect that's what they do. I just really hope he has some discernment because obviously" Mark Robinson was a bad choice. ."

North Carolina, a perennial battleground since Barack Obama turned it blue in 2008, has largely eluded Democrats ever since Making the state even more tantalizing, Democrats have generally won governorships. Cooper is considered particularly formidable, winning the governorship in 2016 and 2020 — when Trump also won the state. Similarly, Democratic Gov. Josh Stein last year beat scandal-ridden GOP Lt. Gov. Mark Robinson to succeed Cooper even as Kamala Harris lost the state.

But Democrats haven't won a Senate seat here in nearly two decades—and Tillis defeated that Democrat, Kay Hagan, to reclaim it in 2014. Among the more moderate Republicans in the Senate and an increasingly rare example of a GOP lawmaker willing to break with Trump, Tillis was one of the party's most vulnerable incumbents. Now his retirement is giving Democrats an even stronger target.

An open seat is a totally different ball game than a Thom Tillis seat in terms of flippability," said a senior Democratic aide granted anonymity to speak candidly. "That will be a blue seat come 2026.

North Carolina could become a rare bright spot for Democrats on what is otherwise a very difficult Senate map. They’re defending a trio of competitive open seats, and their only offensive opportunities going into the cycle ran headlong into formidable incumbents like Tillis and Sen. Susan Collins of Maine. .

"It just shows you that the Republicans' majority is at risk because their Big, Ugly Bill is so unpopular, not just in North Carolina but throughout the country," Senate Minority Leader Chuck Schumer said in a statement.

All eyes are now on Cooper. A person close to the former governor said Tillis' announcement "doesn't really change anything" regarding Cooper's own considerations, arguing that whoever emerges from the Republican primary will have either voted for or expressed support of the Medicaid cuts that Tillis has criticized.

This has always been a personal decision [for Cooper]," the person said. "He's always believed that he could win and that he gave Democrats the best chance to win. None of that has changed this afternoon.

Tillis' decision to head for the exit is the latest sign that the GOP faces a difficult midterm battle on multiple fronts.

The move comes less than 48 hours after reports emerged that centrist Rep. Don Bacon intends to announce his retirement on Monday , opening up a swing seat in Nebraska in one of only three GOP-held districts Kamala Harris won in the 2024 presidential election.

And Republicans are already poised to spend heavily in a bitter Senate primary in Texas between Sen. John Cornyn and state Attorney General Ken Paxton, potentially forcing the party to divert resources from more competitive races elsewhere.

Still, the path back to Senate control — gaining four seats — remains narrow for Democrats. Even if the party flips North Carolina's Senate seat, they would have to wrest back control of redder territory like Iowa or Ohio and unseat Collins in Maine to have any chance at a majority. And they still face expensive, competitive races to defend Senate seats in Michigan and Georgia, states Trump won in 2024, while protecting open seats in Minnesota and New Hampshire, too.

That has led Democrats to look further afield for a path to a majority, with some in the party staking their hopes on winning Texas' Senate seat if Paxton, a controversial MAGA darling, becomes Republicans' nominee. But Democrats haven't held a Senate seat in the Lone Star State in over three decades.

Tillis spent the week issuing increasingly dire warnings to his Republican colleagues that the party could lose seats—including his own—if it continued to pursue controversial changes to Medicaid, likening the public health care program to the political albatross the Affordable Care Act was for Democrats in 2014. Those concerns drove him to take a procedural vote against the megabill Saturday evening.

Trump responded by threatening to find someone to primary Tillis, exposing the increasingly strained relationship between the senator, the White House, and Senate GOP leadership as Tillis pushed back against the bill.

"With Donald Trump in the White House voting against his agenda seems like either a decision to retire or suicidal," said Sen. Kevin Cramer (R-N.D.).

The president on Sunday took a victory lap after the senator said he wouldn't run again: "Great News! 'Senator' Thom Tillis will not be seeking reelection," he posted on Truth Social.

Before the post Tillis said he texted Trump, "He probably needed to start looking for a replacement."

"I told him I want to help him. I hope that we get a good candidate, that I can help, and we can have a successful 2026," Tillis recounted Sunday night.

One GOP strategist, granted anonymity to describe private conversations, said Republicans were breathing a "sigh of relief" that Tillis was retiring, believing that a fresh candidate would better appeal to the voters as the incumbent butted heads with the president and showed a Declining favorability rating in polls .

Democrats argue that Republicans' support for Medicaid cuts gives Cooper in particular an opening.

“He was obviously instrumental in getting Medicaid expansion here in the state and this bill will threaten it,” said Doug Wilson, a Democratic strategist who was an adviser on Kamala Harris’ campaign in North Carolina. “This gives him a lane to run on. Not only did he help implement it, it was something he has pushed for since his first term.”

Nickel is the most prominent of the Democrats to announce a campaign so far. He has hinted at a Senate run ever since being redistricted out of his House seat in the last cycle and has expressed confidence in his chances against whichever Republican candidate emerges.

“No matter which MAGA loyalist Donald Trump hand-picks to run in North Carolina, I’m the Democrat who’s ready to take them on and win. I’ve flipped a tough seat before and we’re going to do it again,” he said in a statement to newsrealtime.

Still, flipping North Carolina isn't a done deal for Democrats either.

People forget that North Carolina Senate races are always close," said Doug Heye, a North Carolina-based Republican strategist. "There hasn’t been a double-digit Senate win since 1974.

Rachael Bade, Jordain Carney, Meredith Lee Hill, Calen Razor and Andrew Howard contributed to this report.

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