The usually cutthroat House Oversight and Government Reform Committee put partisanship on a brief pause Wednesday morning to offer bipartisan prayers and support for outgoing ranking member Gerry Connolly (D-Va.), who unexpectedly announced Monday he will soon step aside amid the return of his esophageal cancer.

The panel started a contentious hearing on its portion of the GOP party-line megabill, including major overhauls to federal employee retirement benefits, with kind words for their absent colleague who represents more federal workers than any other member of Congress.

“We don’t always agree, but I will tell you, I think he is a tremendous legislator,” said committee Chair James Comer (R-Ky.). “I think that Ranking Member Connolly is a role model for what a good member of Congress should be. He fights for what he believes in. He’s honest, and he tries to do what he thinks is best, and we, all the Republicans on our side of the aisle appreciate and respect Gerry Conley and wish him a speedy recovery.”

Rep. Stephen Lynch (D-Mass.), who was asked by Connolly to fill in as ranking member on an interim basis, stressed that Connolly — who also said he will not run for reelection — has not yet left his post.

“Gerry Connolly is still involved here, so he is whispering in my ear,” said Lynch. “I know it pains him greatly not to be part of this, but I hope that his presence and his love and his long time advocacy on behalf of federal employees has an impact on this hearing and on the votes that we will take from the course of this day.”

Tennessee Republican Rep. Tim Burchett asked his colleagues to join him in a prayer for the panel’s top Democrat.

“We just ask for his healing and thank you, Lord, for bringing him into our lives,” said Burchett. “We don’t agree on anything, but I love him like a brother.”

Republicans’ drive toward the “big, beautiful bill” is starting to hit some big potholes.

As lawmakers get into gear on extending President Donald Trump’s tax cuts, cracks are deepening on critical issues, including Medicaid, food aid and even lower-profile issues like transportation funding. Lawmakers are also getting impatient for more details about the plans from leaders, including on lifting caps on deductions for state and local taxes.

“We’re in the seventh or eighth inning of this game. At some point in time, leadership and/or the committee need to reveal part of their hand,” Rep. Nick LaLota told reporters, adding he expects a number on how much leaders are planning to lift the SALT cap from a meeting Wednesday. “[It’s been] mostly pleasant the last few months, mostly because we haven’t been specific.”

Here are the key headaches they have to solve:

MEDICAID — House Speaker Mike Johnson has a deepening challenge on his hands: How to deal with the safety-net health program millions of Republican voters rely on. Couple that with blue-state Republicans’ push to boost the SALT cap, and he’s got a big math problem that could delay the GOP’s bid to extend Trump’s tax cuts.

Key vulnerable House Republicans like David Valadao and Don Bacon are raising red flags about the extent of potential spending cuts, as POLITICO reported Tuesday afternoon.

LaLota told reporters Tuesday he wants to hear more from Energy and Commerce Chair Brett Guthrie about how capping federal spending in states that have expanded Medicaid would impact recipients.

“My sense is that would be a cut, and I’m not in favor of that,” LaLota said. Guthrie is huddling with concerned members Wednesday.

SNAP — The White House won’t support a proposal to push some nutrition program costs onto states, House Agriculture Chair G.T. Thompson said Tuesday. That throws a wrench in his plans to scale back federal funding for the Supplemental Nutrition Assistance Program in order to reach their target of $230 billion in spending cuts.

Now he’s waiting to see if Republican leadership lowers the savings target. “If it’s $230 billion, I don’t think that’s an appropriate number” absent the cost-sharing arrangement, he said.

VEHICLE FEES — Johnson and other Republicans were hesitant about a proposal to create a $20 annual fee on passenger cars in the Transportation and Infrastructure portion of the package unveiled Tuesday. The speaker said it wasn’t his “priority.” Fiscal hawk Rep. Chip Roy was more direct in his opposition, calling it a “gimmick.”

And as of early Wednesday morning, the proposal is kaput: T&I Chair Sam Graves plans to eliminate the universal fee in a manager’s amendment expected to be offered at a morning markup, Chris Marquette reports. The EV fees will not only remain, but go even higher.

FEDERAL PENSIONS — On Oversight, Rep. Mike Turner said he would oppose the committee’s proposal to slash federal employee retirement benefits as a way of offsetting the cost of the larger legislation. The panel is tasked with finding $50 billion in savings, much of which is expected to come from changes borne by the federal workforce.

“These pensions are not giveaways — they are promises to federal workers in exchange for their dedicated service,” Turner said in a statement.

CARRIED INTEREST — House Republicans might be souring on Trump’s proposal to kill a tax break favored by Wall Street. Ways and Means has privately indicated it’s not leaning toward closing so-called carried interest loophole in the package, according to one House Republican and another person familiar with the private conversations. One House Republican said they are “talking about it” but indicated it’s unlikely to survive.

What else we’re watching:

— Judiciary markup: House Judiciary will mark up its portion of GOP megabill Wednesday, which includes more than just the expected immigration provisions. The bill hands Trump a new swath of executive powers: It would consolidate the federal government’s antitrust enforcement powers at the Justice Department and supercharge the GOP’s deregulatory agenda. House Oversight, Financial Services and Transportation and Infrastructure will also mark up their portions of the GOP party-line bill Wednesday.

— Tariff talk: Senate Majority Leader John Thune is cracking down on members of his conference still squeamish over Trump’s trade strategy as Democrats and GOP Sen. Rand Paul push a vote Wednesday to reject the president’s use of emergency powers to impose blanket global tariffs. After four Republicans joined Democrats in rejecting the emergency Trump was using to justify his tariffs on Canadian imports, Thune warned GOP senators in a private lunch Tuesday with U.S. Trade Representative Jamieson Greer not to cross party lines again.

— Dems 100 days in: Democratic leaders Chuck Schumer and Hakeem Jeffries will continue hammering the second Trump administration’s first 100 days in a joint appearance on the Capitol steps Wednesday afternoon. But even as Democrats cast Trump as their unifying force, fissures remain in their resistance strategy.

Benjamin Guggenheim, Meredith Lee Hill and Grace Yarrow contributed to this report.

A proposal to create a new $20 fee on most passenger cars to help pay for Trump administration priorities may already be in danger thanks to Republicans loathe to create a new fee.

House Transportation and Infrastructure Committee Chair Sam Graves (R-Mo.) released the details Tuesday of his committee’s contribution to the larger GOP megabill ahead of a planned Wednesday markup, which included the $20 annual fee indexed to inflation.

Graves said it is intended to lay the foundation for eventually doing away with the federal gasoline tax, which has helped pay for transportation projects since it was established in 1932. For now, though, the fee, which would be levied on gas-powered passenger cars, would be additive.

But Rep. Chip Roy (R-Texas) was outraged by the proposal and put it forward as an example of why he’s skeptical about how much the Republicans’ party-line package of tax cuts, border security investments, energy policies and more will actually reduce the federal deficit.

“Like, are you out of your fricking mind?” Roy said Tuesday upon reviewing the proposal. “Like, the party of limited government is gonna go out and, ‘say we’re gonna have [a car tax]?’”

“You know what I was told? ‘Don’t worry about it. We’ll get rid of it later in the highway bill,’” Roy continued. He said the message he received is that the car tax is “a gimmick to pay for this, so we know that we’re not actually gonna pay for it. That’s how this town works.”

Rep. Eric Burlison (R-Mo.) said when the committee convenes to vote on the matter, he’s planning to vote “no,” calling the language “problematic.”

He said Rep. Scott Perry (R-Pa.) is working on an amendment that would modify the language, though he didn’t elaborate. Perry’s office did not immediately respond to a request for comment.

“We’re trying to get the message to leadership that there’s got to be a better way to find the funds than to create a new national vehicle registration fee,” Burlison said.

House Speaker Mike Johnson separately told reporters the proposed fee wasn’t a priority of his, but also didn’t oppose the idea — a least not publicly.

These early reactions from some Republicans don’t bode well for the proposal. But if Graves succeeds, it would mark the first meaningful change to the excise tax revenues that pay for federal transportation projects since Bill Clinton was president — and a major move away from the political inaction on funding deficits that has been the cornerstone of the country’s transportation policy for decades.

Graves’ proposal would call for state departments of transportation to collect the fee and remit it to the Federal Highway Administration. It wouldn’t take effect until Oct. 1, 2030, and would expire four years later unless Congress renews it. Actually doing away with the gasoline tax would require subsequent legislation, as well.

House Education and Workforce Committee Republicans advanced draft legislation Tuesday to slash billions of dollars to student aid programs to help offset the cost of legislation to enact President Donald Trump’s domestic agenda.

Chair Tim Walberg’s plan, which advanced in a 21-14 party-line vote, would make major changes to federal student aid programs under the Higher Education Act of 1965 and is estimated to produce $351 billion in savings, according to a preliminary score from the Congressional Budget Office — exceeding the $330 billion in cuts the panel was tasked with finding to help pay for the larger package of tax cuts, border security investments, energy policy and more.

“Higher education is at an inflection point,” Walberg of Michigan said in his opening remarks. “We are on a fiscally unsustainable path, so we must deliver on the promise of economic mobility to our students and families.”

The measure, dubbed the “Student Success and Taxpayer Savings Plan,” includes significant changes to the Pell Grant like addressing the shortfall in funding and adjusting eligibility for the award. It also would place stricter limits on federal loans borrowers can take out,; repeal regulations related to gainful employment and borrower defense; and include a risk-sharing provision that would put schools on the hook for a portion of unpaid student loan balances.

It also would incorporate a risk-sharing provision that would put schools on the hook for a portion of unpaid student loan balances. Many of the plan’s provisions stem from Republicans’ signature higher education bill known as the College Cost Reduction Act, which has stalled on Capitol Hill.

In a major rebuke of former President Joe Biden’s student loan plans that Republicans have long criticized, the committee’s draft bill would repeal the last administration’s income-driven repayment plan known as SAVE, which offered an easier path to student loan debt forgiveness.

“The Biden-Harris administration’s foolish actions in the federal student loan program exacerbated this budgetary catastrophe,” Walberg said. “From their radical SAVE loan repayment plan to the never-ending repayment pause, Democrats are intent on forcing taxpayers to pay for free college.”

Democrats introduced a little over three dozen amendments that were all rejected during Tuesday’s markup.

The House Armed Services Committee advanced its $150 billion portion of Republicans’ megabill on Tuesday with the support of several Democrats, even as most lambasted it as a “blank check” for a Pentagon in chaos and a defense chief who can’t be trusted.

The 35-21 committee vote came after Republicans thwarted more than 20 Democrat amendments aimed at gutting key funding provisions and highlighting complaints about Defense Secretary Pete Hegseth’s leadership.

Five Democrats sided with Republicans on the final vote to increase defense spending: Reps. Jared Golden of Maine, Gabe Vasquez of New Mexico, Don Davis of North Carolina, George Whitesides of California and Eugene Vindman of Virginia. But most, if not all, Democrats are expected to oppose the broader Republican measure of tax cuts and reductions to domestic programs, such as Medicaid.

Democrats immediately dove into Hegseth’s now infamous decision to share sensitive military details on a Signal chat. Top Armed Services Democrat Adam Smith introduced an amendment that would have restricted 75 percent of the new defense funding until the Pentagon develops a plan to prevent the sharing of classified information outside of approved systems.

“They have not even begun to prove that there’s a chance in hell that they will spend this money intelligently,” said Smith. His amendment failed in a 26-29 party-line vote.

Another amendment from Rep. Chrissy Houlahan (D-Pa.) would have prevented any of the new Pentagon money from being spent until Hegseth steps down as Defense secretary. Her amendment was voted down 24-31, with Democrats Davis and Golden opposing it.

Democrats also highlighted other controversies surrounding Hegseth. Rep. Sara Jacobs of California put forward an amendment that would have blocked funding for a Pentagon makeup studio, following a report that he had ordered a room retrofitted to use before television appearances. Hegseth has denied the report. The measure was defeated in a 26-29 partisan vote.

Key Republicans on the Senate Armed Services Committee say there’s been headway in recent weeks on reaching an agreement to auction off wireless spectrum, expressing renewed hopes for attaching a telecom deal to the party’s massive bill to enact swaths of President Donald Trump’s domestic agenda.

“There’s progress, we’re almost there,” Senate Armed Services Chair Roger Wicker (R-Miss.) said in an interview Tuesday. “We’re at a place where almost everyone is comfortable.”

Reauthorizing the lapsed spectrum auction authority of the Federal Communications Commission and facilitating the direct the sale of airwaves to the private sector could net tens of billions of dollars in revenue — an attractive offset for the party-line legislative package.

The plan has run into obstacles, however, with allies of the Pentagon worrying about protecting the military’s vast store of spectrum, which the Pentagon uses for technology like radar.

Wicker has been negotiating with Senate Commerce Chair Ted Cruz (R-Texas), whose panel also has jurisdiction over the issue. Cruz has emerged as perhaps the party’s most aggressive proponent for freeing up spectrum for the wireless industry, and talked directly about the issue with Trump. He has suggested that spectrum provisions could raise as much as $100 billion in revenue, although the exact amount may shift depending on the nature of any deal.

Asked about recent talks, Cruz said in an interview Tuesday, “we continue to have very positive conversations.”

Other staunch Pentagon allies also seem more open to the possibility of including a spectrum deal in the GOP megabill.

“There’s a possibility,” Sen. Mike Rounds (R-S.D.), a senior Armed Services member, said in an interview. “I think we’re moving in the right direction to protect significant areas that I’ve always been concerned about. Nevertheless, I think we may have some opportunities for that agreement. But it’s got a ways to go.”

Sen. Deb Fischer (R-Neb.), who has long shared Rounds’ concerns, also signaled new headway. She sits on Armed Services and chairs Senate Commerce’s telecom subcommittee.

“I’m not going to make any comment until things are finalized, but yeah, I’m hopeful that the needs we have for national security are going to be recognized, understood and met when we have any kind of discussions on spectrum,” she said Tuesday, declining to elaborate on recent negotiations.

President Donald Trump’s top trade adviser attempted to soothe Senate Republicans alarmed by the president’s aggressive trade policies ahead of a potential vote to reject the executive branch’s sweeping power to enact tariffs.

U.S. Trade Representative Jamieson Greer attended the Senate GOP lunch on Capitol Hill on Tuesday after lawmakers spent two weeks back in their districts, where they heard from farmers and small business owners who are anxious about what the tariffs will do to their bottom lines. Several senators said Greer reassured them that there will be trade deals coming within weeks, which would help put their constituents at ease.

“He feels like they’re making good progress and that they will be announcing deals soon,” said Sen. John Hoeven (R-N.D.). “And of course, that’s going to be very helpful if they do.”

Democrats are expected to force a vote later this week on a resolution to disapprove of Trump’s use of emergency powers to impose tariffs between 10 and 50 percent on nearly every country in the world. While Trump paused the higher tariff rates less than 24 hours after they went into effect, he’s left in place a global 10 percent tariff as well as a 145 percent tariff on China.

Senate Majority Leader John Thune warned Republicans during the lunch against helping the Democrats pass the resolution, just weeks after four GOP senators crossed the aisle to pass a resolution disapproving of Trump’s tariffs on Canada.

“This is a messaging vote for the Democrats. And it’s important to — especially now with the administration on the cusp of getting some deals on trade with other countries — that our folks hang together, give them the space to do that,” Thune said of his message to his conference in a brief post-lunch interview.

The majority leader also launched a staunch defense of Trump’s trade strategy in the face of poor polling and economic turmoil over it, insisting the president’s “policy decisions are the right ones.”

Some Republicans remain uneasy about the tariffs, as they’ve watched Trump’s favorability ratings and consumer sentiment dip to the same level as the Covid-19 pandemic.

“There were a lot of questions,” said Sen. John Kennedy (R-La.), who said he didn’t want to use the word “concerns” because it would be taken out of context. Kennedy said he expected to hear about a deal in the next few weeks — and wasn’t expecting the administration to announce all of its deals at once.

That reassured Sen. Kevin Cramer (R-N.D.), who said senators advised Greer to roll out deals as they happen, not to wait for when the 90-day pause ends July 9.

“Roll them out as they come along, don’t try to, you know, save them all up for the Fourth of July,” Cramer said. “Because people are anxious about it. They want to see the results.”

While back in his district over the past two weeks, Hoeven said, he learned his constituents are largely supportive of Trump’s goal with the tariffs — specifically lowering tariff barriers to open up new markets for U.S. exports. But he said they are nervous about the disruptions that are happening in the short term, particularly as farmers could potentially lose market share and small businesses are feeling forced to put decisions on hold.

“Some of them are maybe delaying decisions, and that’s why we want to keep this moving,” Hoeven said. “Because that delay can have a negative impact on the economy. And that’s why the things we’ve been talking about, getting some announcements out on some of these deals sooner versus later, is going to be helpful.”

House Speaker Mike Johnson and other members of House GOP leadership are pushing the House Ways and Means Committee to vote on its tax legislation next week.

“On schedule, it’ll be next week,” Johnson told reporters Tuesday, when asked when he’d like to see the tax writing committee vote on its portion of the GOP package carrying President Donald Trump’s broad domestic agenda.

The legislation is set to include trillions of dollars in extensions of expiring tax cuts and Trump’s other tax priorities, like proposals to eliminate federal taxation of tips and overtime work.

House Majority Leader Steve Scalise agreed with Johnson’s timeline for Ways and Means action, in an interview.

“Seven of the committees are moving this week, but the other four are going to start moving next week,” including the tax panel, he said.

A spokesperson for Ways and Means declined to comment on the House leaders’ remarks.

Ways and Means Chair Jason Smith (R-Mo.) said Monday that he knows what date the bill markup will be but is not announcing it yet. Many parts of the tax package could depend on progress other panels make on spending cuts.

That’s because the $4.5 trillion allowance for tax cuts in the House budget is contingent on the GOP being able to identify $2 trillion in spending cuts.

“Jason and Chairman Guthrie are going to be talking a lot,” said Scalise, referring to House Energy and Commerce Chair Brett Guthrie (R-K.y.), who will navigating politically perilous cuts to Medicaid.

Scalise added that the GOP has a “rough idea” of the amount of tax cuts that Smith will be working with.

When asked about the number as he exited the GOP’s weekly conference meeting Tuesday, Smith said: “We know exactly what we’re doing. We’re going to announce it shortly.”

It’s “going to be a pro-growth tax bill that delivers on the president’s priorities from day one of his term in office,” Smith said.

Ways and Means members huddled Tuesday as they continued to review provisions to be included in the bill. They are set to convene again for their lunch Wednesday and another policy discussion Thursday.

Sen. Brian Schatz inched forward Tuesday in his bid to succeed retiring Sen. Dick Durbin as the No. 2 Senate Democrat — even as some Democratic senators said it’s too early to even talk about a leadership contest more than a year away.

Schatz’s latest round of supporters includes Sens. Mazie Hirono (Hawaii), John Fetterman (Pa.), Ben Ray Lujan (N.M.) and Raphael Warnock (Ga.). They add to the handful who are already backing Schatz, a group that includes other members of the leadership team.

“Senator Schatz has been an effective leader within the Democratic caucus. I’m confident that as Whip, he will continue his work unifying our caucus and advancing our shared priorities. I’m proud to support Senator Schatz’s candidacy for Whip,” Warnock said in a statement announcing his support for Schatz.

The internal election isn’t until after the 2026 midterms, and many Democrats say they have no plans to engage in the parlor intrigue until that date draws closer. But the race is clearly underway, and Schatz (Hawaii) has an indisputable head start.

Senate Minority Leader Chuck Schumer is planning to run again for leader but the potential Durbin-to-Schatz handoff underscores broader generational change within the Democratic Party. Durbin has held the caucus’ No. 2 position for roughly 20 years and the party hasn’t had a contested race for a top leadership spot in decades.

Schatz has long been viewed as Durbin’s likely successor and currently serves as chief deputy whip. He began working to lock down support after Durbin officially announced last week his decision to retire at the end of his current term, and officially jumped into the race on Monday.

Sen. Mark Kelly (D-Ariz.), who is backing Schatz, said he believes the Hawaii senator is close to having the majority needed to win the whip spot. Democrats frequently elect their leadership team by acclamation but if there’s a contested race, a majority of the caucus is needed to win.

Kelly also dismissed the idea that Democrats’ reticence about engaging in the race this early could prevent Schatz from locking down votes. “I think we are capable of doing more than one thing at the same time,” Kelly said.

Schatz could potentially have competition for the whip spot, though Democrats tend to try to work out agreements within the caucus without letting things go to a contested closed-door vote.

Sens. Amy Klobuchar (D-Minn.) and Patty Murray (D-Wash.) are viewed as two other potential whip contenders. Klobuchar currently serves as the No. 3 Senate Democrat, a position Murray previously held.

Both are keeping a low profile on the matter, telling reporters that they are focused on their current jobs and that there’s a lot of time before Democrats need to make decisions about leadership.

Several Democratic senators have publicly agreed with Klobuchar’s stand, arguing that the caucus should be focused on countering President Donald Trump rather than a leadership election next year. Schumer, asked about Schatz and Klobuchar last week, said it was too early to discuss a potential whip race.

Lisa Kashinsky contributed to this report.