Blow to Trump: Senate rules key Medicaid cut inadmissible - more conflict looms

byAlan Gallardo

June 27, 2025

A central element of Donald Trump's heavily touted legislative package of tax cuts, spending reductions, and border enforcement has been thrown into doubt: the Senate's chief parliamentarian, Elizabeth MacDonough, has ruled that the proposed restructuring of the so-called Medicaid provider tax does not comply with the chamber's procedural rules. As a result, a cornerstone of the bill Trump hoped to celebrate as his next major breakthrough by July 4 is now in jeopardy.

The decision is a significant setback for Republicans - and comes at a time when the party is under intense pressure to push the controversial legislation through Congress. Particularly painful: the massive budget shortfall caused by Trump's tax breaks was supposed to be partially offset by cuts to Medicaid - the U.S. health care program for low-income individuals. With the parliamentarian's objection, those very cuts are now at risk.

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