The senator has recently dismissed several contentious elements in the GOP tax and spending proposal, generating quite a stir.
Congressman Elizabeth McDonough’s choice on Thursday to not cut significant Medicaid provisions in the bill has drawn ire.
Senate Majority Leader John Tune (Rs.D.) expressed he wouldn’t challenge McDonough’s ruling, aiming for a “big, beautiful bill” to be on President Trump’s desk by July 4th.
The Megaville package, reflecting much of Trump’s legislative priorities, has to go through something called the “bird bus” process. Essentially, this assesses measures for compliance before they can be included in a settlement package that could pass with just 51 votes.
Republicans still have the chance to tweak regulations to resolve conflicts and resubmit them for further review.
Let’s explore what didn’t make the initial cut:
Capping provider tax. Excluding non-citizen Medicaid
McDonough took issue with certain Medicaid-related clauses in the GOP Megabill, particularly those intended to restrict state healthcare provider taxes to obtain more federal Medicaid funding.
This provision was projected to save the federal government hundreds of billions over the next decade while offsetting the costs linked to making Trump’s corporate tax cuts permanent. However, it meant states would have to spend more on Medicaid coverage.
Additionally, McDonough turned down elements of the bill that would have eliminated Medicare eligibility for many non-citizen immigrants, including refugees and asylum seekers, even if they had valid work history, met age and disability criteria, and contributed to the program.
Excluding ACA subsidies for plans that include abortion care
McDonough declined to support a ban on federal grants under the Affordable Care Act (ACA) for qualified health plans covering abortion services.
The provided measures aimed to reduce ACA cost-sharing subsidies specifically for states where insurance companies chose to cover abortions. This could significantly affect those states where such coverage is common.
She also rejected another measure aiming to eliminate the “silver load” under the ACA, which involves raising premiums on silver-level health plans to compensate for the subsidies.
Medicaid restrictions, CHIP coverage for immigrants
McDonough opposed a clause barring federal funds from being used for Medicaid and children’s health insurance programs (CHIP) covering individuals whose verification could not be established immediately.
Moreover, she turned down provisions that aimed to lower the federal health assistance rate for states providing Medicaid to undocumented immigrants from 100% to between 90% and 80%. This change would have mainly impacted states opting to extend Medicaid under the ACA.
Changes to contributions to the federal employee retirement system
McDonough found fault with the language suggesting increased contribution rates for retirement plans for new civil servants who refused federal employment, asserting that it defied the Bird Rules, which prohibit unrelated budget provisions.
State permits for border security and immigration enforcement
The initial Megabill included provisions granting states the power to execute border security and immigration enforcement, a role typically reserved for the federal government. McDonough rejected this aspect, claiming it breached Bird Rules.
Measures restricting court oversight
Congress was poised to dismiss the bill, which would complicate the courts’ ability to enforce lawsuits against the Trump administration. McDonough argued that limiting the courts’ authority to issue restraining orders against Trump’s actions contradicted Senate regulations.
Restrictions on SNAP benefits for non-citizens
Last week, McDonough spoke out against measures that would restrict non-citizens and legal permanent residents from accessing the Supplemental Nutrition Assistance Program (SNAP).
She also opposed another SNAP provision demanding states to foot a percentage of food aid costs based on individual error rates in aid delivery, which could require states to pay between 5% and 15% by 2028. Most states had error rates exceeding 6%.
Extension of permanent price support suspension
McDonough rejected Republican proposals to expand the existing suspension of permanent pricing authorities, traditionally linked to the farm bill.
The original bill sought to end long-standing practices, effectively forcing farm Republicans to the negotiating table on issues impacting agricultural subsidies behind the scenes.
Provisions voted down by lawmakers would have allowed these grants to extend beyond the usual expiration date to 2031.
Funding limits for the Consumer Financial Protection Bureau
McDonough opposed a proposal that would effectively phase out the Consumer Financial Protection Bureau by imposing a funding cap that could reduce the agency’s operational budget to zero.
She also dismissed additional measures directed at the Senate Banking Committee. Plans to cut staff salaries, for instance, could have saved $1.4 billion through reduced federal costs.
Furthermore, she turned down suggestions for slashing financial research budgets and disbanding public company accounting oversight committees.
Sale of public land
The senator also rejected proposals spearheaded by Sen. Mike Lee (R-UT) aimed at selling off millions of acres of land managed by the Forest Service and the Bureau of Land Management across several states.
Lee has indicated he plans to tweak the proposal, limiting sales to land close to populated areas.
Relaxing requirements for offshore oil and gas projects
McDonough blocked provisions that would have automatically deemed offshore oil and gas endeavors compliant with the National Environmental Policy Act.
She also denied measures mandating quick issuance of offshore leases and requirements for monitoring road construction aimed at facilitating development of several mines in Alaska.
Mandating postal services to sell electric vehicles
The initial bill included clauses attempting to reverse Biden administration rules regarding the operations of the General Services Bureau, particularly concerning electric vehicles for the U.S. Postal Service.
However, the bill still permits the postal service to acquire more electric vehicles and charging infrastructure.
Elimination of EPA regulations on car pollution
The bill encompassed various Environmental Protection Agency (EPA) regulations meant to limit air pollution emissions from passenger vehicles. McDonough recently asserted that these provisions couldn’t be part of “a big, beautiful bill.”
Allowing developers to bypass environmental reviews
Republicans aimed to modify the National Environmental Policy Act to expedite environmental assessments for project developers who paid a fee, but McDonough opposed this approach.
Amendments to the Rein Act
Lastly, McDonough stated Republicans couldn’t incorporate an updated version of the Rein Act in this legislation, which sought to empower Congress over major regulations.
