House Republicans are gearing up for their most consequential megabill markups Tuesday with massive, unresolved policy fights that could unravel President Donald Trump’s “big, beautiful bill.”
WAYS AND MEANS — At least one blue-state Republican is threatening to torpedo the GOP’s tax package over Chair Jason Smith’s proposal to triple the cap on the state and local tax deduction to $30,000 and limit it to people who make $400,000 or less.
“The bill is dead effectively on the floor,” Rep. Nick LaLota, one of a quartet of so-called SALT Republicans advocating for a higher cap, told POLITICO Monday night. Smith “insulted us with fake numbers” and “demonstrated bad faith in presenting a bill that … doesn’t even come close to earning our vote,” said LaLota, who is not on Ways and Means, but whose support will be necessary when the bill comes to the House floor.
But the SALT plan isn’t final. Ways and Means will use the placeholder language when it marks up its portion of the megabill at 2:30 p.m., with the expectation that negotiations will continue until the floor vote on the full legislation. Speaker Mike Johnson huddled with SALT Republicans and other top GOP lawmakers on Monday, and many Republicans involved in the talks believe they’ll end up compromising on slightly higher numbers, according to people familiar with the discussions.
ENERGY AND COMMERCE — The panel is poised for an epic, Medicaid-focused markup starting Tuesday at 2 p.m. that could continue overnight and late into Wednesday. Committee Democrats say it could run longer than the marathon 27-hour markup during Republicans’ unsuccessful attempt to repeal the Affordable Care Act in 2017.
Expect Democrats to offer a host of amendments to try and force Republicans into difficult votes over Medicaid. So far, it looks like Chair Brett Guthrie has gotten moderates on board with a plan that would force states to make some difficult decisions. One centrist panel member, Nick Langworthy, said he’s been won over, calling Guthrie’s gambit a “bold” proposal that protects Medicaid “for those who genuinely need it.” The bigger test may come after the markup, however, when it hits the floor and goes up against conservatives angling for deeper spending cuts.
Required reading ahead of E&C’s markup: How Guthrie, who has long wanted to overhaul Medicaid, is selling a compromise.
AGRICULTURE — The most contentious plan for the Supplemental Nutrition Assistance Program is officially on tap Tuesday: Forcing states to pay for part of the program using a sliding scale based on their payment error rates, beginning fiscal year 2028. Some Republicans fear this cost-share plan would disproportionately impact rural and red states including Alaska and South Carolina.
Agriculture Committee lawmakers will begin their markup at 7:30 p.m. and break at midnight, then reconvene for amendment debate at 10 a.m. Wednesday.
What Democrats are doing amid these megabill markups: Staying on message. The DNC is sending a mobile billboard around the Hill this morning criticizing Republicans for cutting Medicaid and SNAP, according to plans shared first with POLITICO. And the Democratic Women’s Caucus is urging Republicans across these three committees not to cut safety-net programs, according to a letter sent Tuesday that POLITICO obtained first.
“We have heard from women and families from across the country, and the message is clear — do not cut programs and services that deliver basic necessities like food and health care for women and families,” the caucus wrote.
Across the Capitol: Many GOP senators are bristling over some of the policies their House counterparts are pursuing. Sen. Ron Johnson said Monday he’d oppose the current House megabill for not going far enough to reduce the deficit, in a preview of problems to come for the party-line bill.
What else we’re watching:
— It’s not just Medicaid: Lawmakers are also proposing a dramatic concession to the tech industry as part of the Energy and Commerce contribution to the GOP megabill. When the committee meets later Tuesday, members will consider a 10-year moratorium on state and local regulation of AI models, amid growing tensions between federal lawmakers and state regulators. (Though it’s not likely to survive the Senate’s Byrd Rule.)
— Library of Congress fallout: Add Senate Majority Leader John Thune to the list of congressional leaders pushing back against Trump’s decision to fire top officials at the Library of Congress. Thune said on Monday that lawmakers “want to make sure we’re following precedent and procedure” in naming a replacement for ousted Librarian of Congress Carla Hayden. He added: “We want to make sure congressional equities are respected and protected in this process.”
— Dem Oversight race: Rep. Jasmine Crockett is planning to run for her party’s top slot on House Oversight after wavering last week when Rep. Kweisi Mfume, one of the most senior Democrats on the panel and a fellow Congressional Black Caucus member, started making moves toward a bid. In a text message sent to colleagues, Crockett said the current times “call for an extraordinary response” which is why she is seeking the position.
Anthony Adragna, Jordain Carney, Mohar Chatterjee, Hailey Fuchs, Benjamin Guggenheim, Meredith Lee Hill, Nicholas Wu and Grace Yarrow contributed to this report.