The Senate parliamentarian has rejected a key Medicaid reform provision in the GOP’s megabill—called the One Big Beautiful Bill Act—a major setback for Republicans hoping to find billions in savings from the program.
Senate Parliamentarian Elizabeth MacDonough on June 26 struck out a GOP plan to reduce federal Medicaid costs by capping states’ use of a health care provider tax. The proposal was expected to generate hundreds of billions in savings to offset the cost of making business tax cuts permanent, another part of the megabill.
