Senate moves closer to "acceptance" on big red line for House GOP

Sen. Markwayne Mullin (R-Okla.) said Monday that negotiators are nearing a deal that would keep the House-passed $40,000 SALT deduction cap in the Senate's version. Why it matters: The SALT cap is one of several major differences between the House and Senate that need to be resolved if congressional GOP leaders want to meet their July 4 deadline for President Trump's "big, beautiful bill.""I wouldn't say an agreement, just an acceptance," Mullin told reporters. "It does it with the income threshold, but not the cap."The House version phased out the deduction for income above $500,000. The Senate's compromise version will likely lower that threshold. "No side is going to be happy, but it's something that we've got to put a number in. We want to get it where it's palatable for both sides, but neither side is going to love it," Mullin said. Driving the news: Republican senators met Monday night to once again hash out priorities for their major piece of legislation — after the Senate parliamentarian took a hatchet to it over the weekend. The chamber rule keeper knocked out roughly $300 billion in revenue sources, Mullin estimated, ruling them ineligible under budget reconciliation rules."So we're grabbing everything we can to make sure we have the deficit cuts," Mullin said.Zoom in: Agriculture Chair John Bozeman (R-Ark.) explained to senators in the meeting how he thinks they can work back in some SNAP savings cut by the parliamentarian."John pretty much outlined how he thinks he's going to be able to work that," Sen. Shelley Moore Capito (R-W.Va.) told Axios, saying there could be potentially a longer glide path for the states. "That was the big one," Capito said of the SNAP ruling. Sens. Marsha Blackburn (R-Tenn.) and Ted Cruz (R-Texas) got into a heated debate over the AI moratorium provision, with Blackburn arguing to protect songwriters, according to two attendees.Between the lines: Senators also discussed their differences on Medicaid proposals, with Majority Leader John Thune (R-S.D.) indicating that changes to the federal matching share (FMAP) for new Medicaid enrollees is unlikely to be included in the final bill.Sen. Rick Scott (R-Fla.), who met with Trump this evening, told reporters that eventually changes needed to be made be made to the program, or else taxes would likely increase for Americans."There's no way the federal government can pay for this," he said."My proposal is real simple. No one gets kicked off."He wants to grandfather existing enrollees under the current 90% match, but over time, steadily reduce the FMAP for more people.What they're saying: "Right now, the bill is held together with happy thoughts and spit," said John Kennedy (R-La.). "I think we'll eventually pass something I just can't tell you when we've got a lot of stuff to work out and the bill will be changed on the floor.""There were also some ideas and questions that we're gonna follow up on tomorrow at lunch," Sen. Katie Britt (R-Ala.) told Axios. "I would expect us to kind of pick up right where we left off, and keep working through the issues that people do have."

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