Senate Republicans intend to remove a controversial tax on solar and wind energy projects as part of their budget megabill, according to three people familiar with the plans.

Republicans’ final amendment to wrap in last-minute changes to the budget reconciliation bill will include a compromise for Senate hold-outs by removing the tax, as well as providing a carve-out from the tax credit phase-out for solar and wind projects that begin construction less than one year after the bill’s enactment, according to the three people, who were granted anonymity because they were not authorized to speak publicly.

The amendment would still require other solar and wind energy projects to be placed in service by the end of 2027, echoing language in the Senate’s updated text last week that could threaten hundreds of planned projects.

It would also make changes to complex requirements that prohibit sourcing from foreign entities of concern that companies had seen as unworkable.

The approach marks a potential compromise between camps of GOP senators who were divided on the phase-outs for the credits, including Sen. Lisa Murkowski, a key swing vote.

The excise tax on solar and wind generation projects was quietly added to the Senate’s budget reconciliation text last week, prompting widespread pushback from clean energy developers and advocates.

Under the new draft, solar and wind projects seeking the Inflation Reduction Act’s tax credits can begin construction within one year after the date of the bill’s enactment to qualify for the credits, but projects that begin construction after that would need to be placed into service before the end of 2027 to qualify for the credit.

Republicans released updated megabill text last week that would make sharp cuts to the climate law’s solar and wind tax credits by requiring projects seeking to claim the law’s clean electricity production and investment tax credits be placed in service by the end of 2027.

The changes to the bill were negotiated behind the scenes as an amendment from Sens. Joni Ernst (R-Iowa), Murkowski (R-Alaska) and Chuck Grassley (R-Iowa).

Sen. John Curtis (R-Utah) also played a key role in negotiating the changes, a person familiar with the talks said.

James Bikales contributed to this report.

Senate Republicans have released an updated draft of their domestic-policy megabill ahead of final floor action.

The 887-page text is not expected to be the final legislation passed by the Senate; further revisions are being made in the last moments before the final amendment and passage of the bill.

The Senate is on track to start voting on final amendments and passage of the GOP megabill.

“I believe we do” have a deal, Senate Majority Leader John Thune told reporters.

There will be several amendments debated before the final vote, according to Sen. John Hoeven (R-N.D.). One, he said, would be from Sen. Amy Klobuchar of Minnesota, challenging a provision negotiated to placate GOP holdout Sen. Lisa Murkowski dealing with the SNAP food-aid program in her home state of Alaska.

A final “wraparound” amendment reflecting other negotiated points is also expected to be offered that will tweak provisions dealing with Medicaid and clean energy tax credits.

President Donald Trump appeared to leave room to extend his July 4 deadline for Congress to pass the One Big Beautiful Bill Act, as the Senate scrambles to push through the legislation amid Republican infighting.

“I’d love to do July 4th, but I think it’s very hard to do July 4th,” Trump told reporters on the South Lawn on Tuesday, before adding that the goal is “somewhere around there.”

The fate of the sweeping megabill remains up in the air, as Republican leaders struggle to secure enough votes to push the legislation through the Senate.

Trump has repeatedly sought to firm up GOP votes, blasting holdouts as “not good people” and not so subtly reminding Republicans not to go “too crazy,” because they “still have to get reelected.”

But even though the president and his allies have launched a pressure campaign to encourage movement from Republicans in the Senate, Trump began to waffle on the self-imposed July 4 ultimatum as it drew closer.

The president on Friday said the deadline was “not the end-all,” and that “it can go longer, but we’d like to get it done by that time if possible.”

Sen. Joni Ernst said her closely watched amendment seeking to maintain wind and solar tax credits will not get a Senate vote before the anctipated passage of the GOP megabill.

“I don’t think they’re going to let us” offer the amendment, the Iowa Republican told reporters Tuesday morning as GOP leaders rushed to put finishing touches on the bill. “There’s a lot of stuff that went on overnight that kind of waylaid our plans.”

Ernst’s amendment would echo an earlier proposal to phase down the Inflation Reduction Act’s clean electricity production and investment tax credits for solar and wind generation projects by linking to when projects begin construction. It would also eliminate an excise tax proposed by Republicans that would penalize any wind and solar project placed into service after 2027 if it includes material assistance from China or other prohibited foreign entities.

Ernst was joined on the amendment by Sens. Lisa Murkowski (R-Alaska) and Chuck Grassley (R-Iowa).

It’s possible that the amendment or part of it could be included in a final “wraparound” amendment GOP leaders are expected to offer ahead of a final vote. Murkowski, considered a swing vote on the overall bill, was in intensive talks early Tuesday morning with Majority Leader John Thune and other Senate leaders.

Josh Siegel, Kelsey Tamborrino and James Bikales contributed to this report.

Senate conservatives are dropping their push for a vote on scaling back a key Medicaid funding mechanism, according to three people granted anonymity to discuss private deliberations.

Sen. Rick Scott (R-Fla.) and allies were expected to get a vote on an amendment to scale back the federal share of Medicaid costs for those enrolled under the Affordable Care Act’s expansion of Medicaid starting in 2031. Senate leadership backed the proposal and were expected to help build support for it as part of a deal cut earlier this week to start debate on President Donald Trump’s domestic policy bill.

But Republicans were wary of enacting such a deep cut despite other provisions in the megabill that would decrease Medicaid funding by nearly $800 billion. Several GOP senators warned Monday they did not support making changes to the federal march for Medicaid enrollees.

A spokesperson for Scott did not immediately respond to a request for comment.

While the amendment is being withdrawn, Scott’s fight highlights how far Republicans have been willing to go to curb the Medicaid expansion, a cornerstone of the Affordable Care Act. Republicans argue the expansion enables able-bodied adults to get coverage at the expense of beneficiaries with disabilities and the elderly.

The federal government traditionally covers half of all Medicaid costs and the state picks up the rest. But the federal government covers 90 percent of costs for expansion enrollees. Under Scott’s proposal, that extra funding would shrink down to 50 percent after 2030. Anyone who was enrolled prior to that date would be grandfathered at the 90 percent payment rate.

While Trump himself has said he does not want to cut Medicaid benefits, an estimated 11.8 million people are expected to lose coverage if the megabill becomes law by 2034, according to estimates from the nonpartisan Congressional Budget Office. The number would likely balloon if Scott’s amendment passed.

John Cornyn is not going down without a fight.

After months of polls showing the four-term Texas senator trailing in the Republican primary, a pro-Cornyn super PAC raised almost $11 million in the most recent fundraising period.

Texans for a Conservative Majority, the outside group supporting Cornyn in his primary challenge from Texas Attorney General Ken Paxton, will have over $12 million cash on hand after the current fundraising quarter. The group has raised over $10.9 million in the quarter after Paxton announced his primary challenge against Cornyn.

Cornyn has been consistently trailing polls in the Senate primary against Paxton, whose indictment and impeachment over corruption and bribery charges left him well regarded by conservative grassroots activists loyal to Donald Trump but viewed skeptically by Republican operatives worried about his reception among swing voters in a midterm election.

“This first report shows what the armchair pundits fail to realize — this race is only beginning in earnest,” Aaron Whitehead, the executive director of the outside pro-Cornyn group, told POLITICO. “With eight months to go before the March primary, Texans for a Conservative Majority is well positioned to take the fight to Ken Paxton and independently support Senator John Cornyn’s re-election.”

Texas’ primary will be held on March 3, 2026.

Senate Majority Leader John Thune’s ability to pass the “big, beautiful bill” is hinging on Sen. Lisa Murkowski.

The Alaska senator has been the subject of an intense whip effort by GOP leaders over the past couple of hours as they try to offer her reassurances on Medicaid and food assistance. Thune, Finance Chair Mike Crapo (R-Idaho) and Senate Majority Whip John Barrasso talked to Murkowski on the floor for roughly an hour overnight. Thune and Murkowski huddled briefly in his office, and they were mum on details when they emerged shortly before 4 a.m.

Just moments ago, the Senate parliamentarian ruled that proposed SNAP carve-outs for an expanded list of states including Alaska are compliant with the Byrd rule. But the parliamentarian ruled a provision that would have boosted federal payments for Medicaid in Alaska and four other states is noncompliant, according to a person granted anonymity to share the decision.

Murkowski is also among the Republicans who have been pushing an amendment to undo the rollback of clean-energy credits under the Biden-era climate law.

Thune insisted to reporters moments ago that senators were closing in on the end of their vote-a-rama.

“We’re close,” he said, adding that they have a few more amendments from senators and a final so-called wraparound amendment to come.

In a potential sign of just how dire Thune’s whip count was looking in the wee hours, the majority leader huddled in his office with Sen. Rand Paul (R-Ky.), who’s long said he would be a “no” on the bill over its debt-ceiling hike.

Another big unknown right now is where Sen. Susan Collins will fall. The Maine senator reminded us less than two hours ago that she’s “said all along that I have concerns with the bill” and also reiterated, when prompted by reporters, that she would have preferred breaking out the tax portion of the policy package on a separate track. Certainly not helping win Collins over: Her bid to boost money for rural hospitals went up in flames.

And major policy fights remain unresolved, including Sen. Rick Scott’s (R-Fla.) divisive amendment to scale back federal payments under the Affordable Care Act’s Medicaid expansion. Scott has leadership’s support on this one and said he expects it to pass. But several GOP senators have openly raised concerns with it.

What else we’re watching:

— Megabill goes to House Rules: Assuming the Senate passes the bill, the House is expected to bring the bill to the Rules Committee at noon on Tuesday, though two people with direct knowledge of the plans say it could get pushed amid delays with the Senate vote-a-rama.

— The next funding battle begins: Senate appropriators plan to move forward with marking up fiscal 2026 government funding bills starting next week. House Appropriations is scheduled to vote July 10 on the Commerce, Justice, Science bill and the Energy and Water Development bill. House Appropriations Chair Tom Cole (R-Okla.) wants to finish marking up all 12 funding bills by the end of July.

President Donald Trump and his top deputies have started their final public push to get the “big, beautiful bill” over the finish line as the Senate struggles to finish up the legislation.

Stephen Miller, Trump’s top policy aide, appeared on Fox News Channel’s “Hannity” Monday night, about 12 hours into the Senate “vote-a-rama,” to angrily rebut criticisms of the bill and fiercely defend its contents.

“I am sick and tired of the lies about this bill that have been perpetrated by the opportunists who are trying to make a name for themselves,” he said. “This is the most conservative bill of my lifetime.”

Around that time, White House budget director Russ Vought took apparent aim at deficit hawks concerned about the expanding costs of the Senate version of the megabill in an X post. He embraced the Senate’s “current policy baseline” accounting, zeroing out the cost of extending the 2017 Trump tax cuts.

“Remember, those saying that the Senate bill increases deficits are comparing it to a projection where spending is eternal, and tax relief sunsets,” he said. “That is a Leftist presupposition, and thankfully the Senate refused to let the bill be scored that way.”

Shortly before midnight, Vice President JD Vance also weighed in on X, arguing that the megabill’s border security and immigration provisions alone made it worthwhile.

“Everything else — the CBO score, the proper baseline, the minutiae of the Medicaid policy — is immaterial compared to the ICE money and immigration enforcement provisions,” he wrote.

Then, at 12:01 a.m., Trump himself posted to Truth Social: “Republicans, the One Big Beautiful Bill, perhaps the greatest and most important of its kind in history, gives the largest Tax Cuts and Border Security ever, Jobs by the Millions, Military/Vets increases, and so much more. The failure to pass means a whopping 68% Tax increase, the largest in history!!!”

Meanwhile, the Senate kept voting, with no final deal yet in sight.