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Trump's 'big, beautiful bill' faces setback as Senate rules knock out key Medicaid provisions

(5 months ago)
Alex Miller
Donald TrumpHealthSenateUnited States

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TL;DR: Key points with love ❤️

Key Medicaid provisions within President Donald Trump's 'big, beautiful bill' have been struck down by Senate Parliamentarian Elizabeth MacDonough, who ruled they violate the Byrd Rule. These provisions included changes to the Medicaid provider tax rate, denying funding for illegal immigrants, and preventing funding for gender-affirming care. This significantly guts Republican cost-saving measures and likely sets back their plan to pass the bill by July 4.

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  1. 1 Thursday (June 26, 2025): Senate Parliamentarian Elizabeth MacDonough ruled against key Medicaid provisions.
  2. 2 July 4 (unspecified year): Target date for the bill to be on Trump's desk.
  3. 3 Next five fiscal years: Proposed duration for the rural hospital stabilization fund.
  • Many Republican cost-saving Medicaid changes were gutted
  • Likely set back the plan to put the bill on Trump’s desk by July 4
  • Concerns raised about potential shutdown of rural hospitals
  • Concerns raised about working Americans being booted from their health benefits
What: Key Medicaid provisions in President Donald Trump’s 'big, beautiful bill' were knocked out by Senate rules; the Senate Parliamentarian ruled against these provisions; Democrats vowed to inflict pain through the 'Byrd Bath' process; Republicans are scrambling to rewrite parts of the bill; a proposal for a stabilization fund for rural hospitals is being floated.
When: Thursday (June 26, 2025) for the ruling; July 4 (target date for bill on Trump's desk); next five fiscal years (for stabilization fund).
Where: United States Senate.
Why: The provisions did not comport with the Byrd Rule, which requires policy changes to have a budgetary and spending impact; Democrats accuse Republicans of trying to gut Medicaid, dismantle the Affordable Care Act, and kick people off health insurance to fund tax breaks for billionaires.
How: The Senate Parliamentarian issued a ruling based on the Byrd Rule; Democrats are using the 'Byrd Bath' process to challenge provisions; Republicans are attempting to rewrite the bill; a stabilization fund is proposed as a fix.

Key Medicaid provisions within President Donald Trump's 'big, beautiful bill' have been struck down by Senate Parliamentarian Elizabeth MacDonough, who ruled they violate the Byrd Rule. These provisions included changes to the Medicaid provider tax rate, denying funding for illegal immigrants, and preventing funding for gender-affirming care. This significantly guts Republican cost-saving measures and likely sets back their plan to pass the bill by July 4.