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Sen. Josh Hawley is urging GOP leaders to strike Senate Finance Committee language altering a key Medicaid financing provision, warning he’s already hearing from House Republicans that it can’t clear their chamber.

“I don’t know why we would pass something that the House can’t pass and will force us into [a] conference,” the Missouri Republican said in an interview about the proposed crackdown on the state provider tax.

Hawley added that he and his fellow Senate GOP colleagues were also caught off guard by the Senate proposal — which would curtail the tax most states use to finance their Medicaid programs rather than simply freezing it, as the House did.

He summed up what he’s hearing from House Republicans: “We cannot pass this. We were not consulted.”

It’s the latest red flag for Senate Majority Leader John Thune as he tries to pass President Donald Trump’s “big, beautiful bill” next week, a necessary step if the House is going to have to advance it to the president’s desk by the GOP’s July 4 target. Thune wants the bill on the floor as soon as Wednesday.

“Unless you want to be here in August and September still doing this, I think that is a bad, bad plan,” Hawley said. “We don’t have time to reinvent the wheel.”

Hawley isn’t the only one raising concerns. House moderates are also starting to express opposition, and others within Speaker Mike Johnson’s circle described themselves to POLITICO as caught off guard.

But Hawley is offering one carrot to GOP leadership that could be critical as they try to hunt down the 50 votes they need to move forward: He said he is prepared to support the House provider tax freeze with the minor clarifications that hospital associations in 13 states, including his own, asked for last week in a letter first reported by POLITICO.

“I think that would be fine,” Hawley said, adding that rural hospitals in his state were “pretty satisfied” with the House language with some technical changes.

GOP leaders, including Senate Finance Chair Mike Crapo, have been hoping to sway Hawley and other holdouts with a proposed rural hospital fund, which they believe would offset the potential impact of the provider tax changes.

While Hawley said he was still open to including a new fund, it wouldn’t change his belief that the Senate provider tax language had to go. In addition to talking with House Republicans, Hawley said he’s delivered his message directly to Thune, who said in a brief interview Wednesday ahead of Hawley’s comments that he’s speaking to Trump on a near-daily basis and is expected to spend the weekend and into early next week negotiating with his holdouts.

“We’re talking to individual senators on an ongoing basis and hearing them out about things they want included or not included in the final draft,” Thune said.

Hawley has already spoken with Trump about the Senate language and has described the president as being “surprised” by the provider tax proposal.

Asked if he believed Trump and the White House should get involved to nudge Thune and Crapo, Hawley added that they were “stepping up their involvement.” He pointed to chief of staff Susie Wiles urging Congress to get the bill to Trump’s desk by July 4 as an example of them “trying to deliver it gently” but predicted it could become “more forceful.”

Asked about the Senate’s Medicaid language Thursday, White House spokesperson Karoline Leavitt declined to get into specifics, instead telling reporters that since “the bill hasn’t been sent to the president’s desk yet, there’s more room for change.”

Sen. Rand Paul is a frequent thorn in GOP leadership’s side. But his recent break over border security funding in President Donald Trump’s “big beautiful bill” has top Republicans pushing the bounds of institutional norms to rein him in.

Senior Republicans have sidelined the Kentucky Republican, who chairs the Senate Homeland Security and Governmental Affairs Committee, in their talks with the White House over policies under the panel’s purview.

Budget Chair Lindsey Graham (R-S.C.) told POLITICO he has taken over as the lead negotiator around how to shepherd through tens of billions of dollars for border wall construction and related infrastructure in the GOP megabill. Meanwhile, a Senate Republican aide said Sen. James Lankford (R-Okla.) — who heads the relevant Homeland Security subcommittee — will be the point person for negotiating the bill’s government affairs provisions.

With every other committee chair helping manage negotiations for their panels’ portions of the massive tax and spending package, cutting Paul out is unprecedented. But Paul proposed funding border security at a fraction of what the administration requested and the House passed in its bill.

“Senator Paul usually votes ‘no’ and blames everybody else for not being pure enough,” Graham told POLITICO. “As chairman, you … don’t have that luxury sometimes. You have to do things as chairman you wouldn’t have to do as a rank-and-file member.”

Indeed, few of Paul’s own committee members appear willing to defend him. Paul lost an ally in Sen. Ron Johnson (R-Wis.), a fellow deficit hawk, after top White House adviser Stephen Miller briefed senators on the administration’s border request and made a persuasive argument. Graham said the meeting was requested by him and Majority Leader John Thune to “contest” Paul’s offer. Paul did not attend.

Sen. Josh Hawley (R-Mo.) said Paul’s decision to draft his own proposal “without any consultation of the committee” was concerning, adding that he had “never seen that happen before.”

Nonetheless, Paul still believes some pieces of his own plan unrelated to border security will end up in the final bill, he told POLITICO on Wednesday, and that he’s involved in ongoing talks with the Senate parliamentarian.

Speaking of the parliamentarian: Senate rule-keeper Elizabeth MacDonough is scrubbing the final draft of the megabill in a “big beautiful” Byrd bath. Her rulings on which provisions will fly under the filibuster-skirting budget reconciliation process are expected to roll in through the middle of next week, when Thune wants to schedule the first procedural vote related to the package.

Republicans are bracing for an answer to one consequential question they punted on earlier this year: whether they can use an accounting maneuver known as “current policy baseline” to make it appear that extending Trump’s 2017 tax cuts would cost nothing.

Senate Finance Republicans and Democrats will make a joint presentation to MacDonough this weekend about which provisions to keep or scrap. And there’s no shortage of GOP priorities under Byrd scrutiny — from tax cuts on certain gun silencers to a plan to raise taxes on foreign companies known as the “revenge tax.”

Other outstanding issues before the parliamentarian: whether Commerce has to tweak language to prohibit states from regulating AI over the next decade; whether Judiciary can block judges’ ability to issue preliminary injunctions; and whether Agriculture can use the megabill to pay for pieces of the stalled farm bill.

What else we’re watching:

— More megabill timeline hurdles: The Senate majority leader is ramping up efforts to quell rebellions within his conference over the megabill as he works to get it to the floor next week. That includes talking to Trump, who he frequently refers to as his “closer,” on a near-daily basis, Thune said. Meanwhile, Hawley is urging GOP leaders to strike Senate Finance’s language that would largely reduce the provider tax to 3.5 percent from 6 percent, warning that it won’t fly with House Republicans who voted to freeze, rather than reduce, the tax that many states use to fund their Medicaid programs.

— Iran classified briefing: Senate Minority Leader Chuck Schumer has privately confirmed there will be an all-senators classified briefing on Iran early next week, a Schumer aide said. It comes as Trump says he’ll decide within the next two weeks whether to strike the country amid its escalating confrontation with Israel.

— Trump pushes Senate’s crypto bill: Trump is urging House Republicans to send a “clean” version of the Senate-passed stablecoin regulatory framework to his desk “LIGHTNING FAST” — dialing up the pressure on congressional Republicans as they mull changes to the bill, including potentially packaging it with broader digital-assets market structure legislation.

Hailey Fuchs, Jordain Carney and Mia McCarthy contributed to this report.

Russ Vought’s relationship with Republican appropriators was already strained. Then he started talking about pursuing the ultimate end-run around their funding power heading into the fall.

The White House budget director has been persistently touting the virtues of “pocket rescissions,” a tactic he has floated as a way to codify the spending cuts Elon Musk made while atop his Department of Government Efficiency initiative, and which the federal government’s top watchdog says is illegal.

On Capitol Hill, leading GOP appropriators see Vought’s comments as another shot against them in an escalating battle with the Trump administration over Congress’ “power of the purse.” And they warn that the budget director’s adversarial posture hinders their relationship with the White House as they work to head off a government shutdown in just over three months.

“Pocket rescissions are illegal, in my judgment,” Senate Appropriations Committee Chair Susan Collins (R-Maine) said in a brief interview this week, “and contradict the will of Congress and the constitutional authority of Congress to appropriate funds.”

To hear Vought tell it, a “pocket rescission” is a legitimate tool at the executive branch’s disposal. In such a scenario, President Donald Trump would issue a formal request to claw back funding, similar to the $9.4 billion package he sent lawmakers this month to cancel congressionally approved funding for public broadcasting and foreign aid.

But in this case, the memo would land on Capitol Hill less than 45 days before the new fiscal year is set to begin Oct. 1. By withholding the cash for that full timeframe — regardless of action by Congress — the White House would treat the funding as expired when the current fiscal year ends on Sept. 30.

The dizzying ploy is another means toward the same goal Trump has been chasing since Inauguration Day: to spend less money than Congress has explicitly mandated in law. But the Government Accountability Office says the maneuver is unlawful, and the GOP lawmakers in charge of divvying up federal funding are wary that Vought is now talking about it in the open.

“I understand we want to use all the arrows in our quiver, and he wants to use all his,” Rep. David Joyce (R-Ohio), a senior member of the House Appropriations Committee, said of Vought in an interview. “But every time you pull out an arrow, you have to be ready for the consequences, right?”

Joyce continued: “It’s going to change the course of conversations and how each side works toward coming to resolution going forward.”

Vought declined last week to elaborate on his intentions, when pressed in person on Capitol Hill about his plans to use the ploy in the coming months. His office also did not return a request for comment. However, the budget director laid out a detailed argument for the maneuver on television earlier in the month — then mentioned it again as he left a meeting with Speaker Mike Johnson and then during a later hearing with House appropriators.

“The very Impoundment Control Act itself allows for a procedure called pocket rescissions, later in the year, to be able to bank some of these savings, without the bill actually being passed,” Vought said on CNN. “It’s a provision that has been rarely used. But it is there. And we intend to use all of these tools.”

Rep. Mike Simpson of Idaho, who chairs the appropriations panel that funds the Interior Department and the EPA, recently warned that the gambit is “a bad idea” that “undermines Congress’ authority,” after saying last month that he thinks “it’s illegal” for a president to withhold funding lawmakers approved.

But many top Republican appropriators — while scoffing at Vought’s comments — aren’t willing to engage in rhetorical arguments about the bounds of the president’s spending power.

“Talking is one thing. We’ll see if he actually does it,” Rep. Ken Calvert (R-Calif.), who chairs the appropriations panel that funds the military, said about Vought’s comments.

“He’s got his ideas,” said Rep. Steve Womack (R-Ark.), chair of the appropriations panel responsible for funding the departments of Transportation and Housing.

“I’d have some concerns about it,” said Rep. Robert Aderholt (R-Ala.), who chairs the appropriations panel that funds the departments of Education, Labor, and Health and Human Services — all targets of Trump’s deepest funding cuts.

Tension has been building for months between those Republican appropriators and Vought, who has a history of testing the limits of funding law: When he served in this same role during Trump’s first administration, he froze aid to Ukraine in a move that helped set the stage for the president’s first impeachment trial.

Republican funding leaders are irked that the White House has yet to deliver a full budget request, which appropriators rely upon to write their dozen funding measures. Vought has already left open the door to withholding the new money if the administration doesn’t agree with the spending priorities in the final bills.

They also say the president’s budget director and other Cabinet secretaries have withheld essential information about how they are using federal cash as the Trump administration fights off more than 100 legal challenges around the country. The suits are seeking to overturn the White House’s freezing of billions of dollars Congress already approved for myriad programs and agencies.

House Appropriations Chair Tom Cole (R-Okla.) issued a rare rebuke of Vought this spring for taking down the public website showing how agencies are expected to disburse federal dollars.

But the Oklahoma Republican generally avoids any public criticism of the Trump administration and is not sounding off now about Vought’s embrace of pocket rescissions. Cole said this month that he would “look at each individual” request the White House sends to claw back funding, now that the House has passed the $9.4 billion package to nix money for foreign aid and public broadcasting.

That package of funding cuts now sits in the Senate, where some top Republicans are interested in tweaking the plan to protect funding for preventing AIDS around the world and supporting PBS programming in their home states. Sen. Ron Johnson (R-Wis.) suggested Vought’s public comments about using pocket rescissions could be intended to encourage reluctant senators to clear it.

“Maybe that’s the way to let members know: Vote for the ones he sends up,” Johnson said, noting that he would be “totally supportive” of Vought using the tactic this fall.

Another Senate fiscal hawk, Homeland Security and Governmental Affairs Chair Rand Paul (R-Ky.), said he believes the law “does allow for pocket rescissions.”

“I think the president should have more power not to spend money,” Paul told reporters last week. “So if we have a way to reduce spending, by all means, we should use it.”

No court has ruled on the president’s power to cancel funding by sending Congress a request and then running out the clock at the end of the fiscal year. But GAO has twice weighed in.

In 2018, the watchdog found that the law “does not permit the withholding of funds through their date of expiration.” Vought, though, likes to cite an older GAO conclusion from 1975: It determined that Congress was unable to reject then-President Gerald Ford’s requests to claw back funding “in time to prevent the budget authority from lapsing.”

Katherine Tully-McManus contributed to this report.

As chair of the Senate Homeland Security and Governmental Affairs Committee, Sen. Rand Paul technically has jurisdiction over a central plank of President Donald Trump’s “big, beautiful bill.” But the Kentucky Republican’s desire to aggressively cut the administration’s request for border security spending has sidelined him in negotiations.

In an interview this week, Senate Budget Chair Lindsey Graham said that he has taken over as the lead negotiator in talks with bicameral leadership and the White House over how to deploy tens of billions of dollars to strengthen border security and reduce the flow of migrant encounters at the southern border into the United States.

Graham, a South Carolina Republican who released his own border security funding plan shortly after Paul introduced his, said he offered himself up to the Trump administration as the point person on the border security provisions of the megabill.

“Senator Paul usually votes ‘no’ and blames everybody else for not being pure enough,” said Graham, who has a long history of clashing with Paul over federal spending and foreign policy. “As chairman, you … don’t have that luxury sometimes. You have to do things as chairman you wouldn’t have to do as a rank-and-file member.”

“Senator Paul’s reducing the amount [for border security] didn’t withstand scrutiny,” Graham added. “The analysis was shallow.”

At the same time, the office of Senate GOP Conference Vice-Chair James Lankford of Oklahoma — also the chair of the Homeland Security Subcommittee on Border Management, Federal Workforce and Regulatory Affairs — is planning to work directly with Senate leadership staff on the government affairs provisions, said a Senate Republican aide granted anonymity to describe internal party dynamics.

Paul has made clear repeatedly he isn’t planning to vote for the party-line tax and spending bill anyway, giving leadership few reasons to try and play nice. Yet the decision by senior Senate Republicans to undermine a committee chair in such a way marks a dramatic departure from standard Senate procedure. It also reflects the extent to which Paul has become an ideological island, despite him holding a committee gavel thanks to the chamber’s rules around seniority.

And in another break with precedent, few of Paul’s own members on the Homeland Security panel, if any, appeared supportive of the chair’s approach or willing to back him up against leadership’s attempts to undermine him. Sen. Josh Hawley, a Missouri Republican, said it was concerning that Paul would draft his own proposal “without any consultation of the committee.”

Hawley added he had “never seen that happen before.”

Sen. Bernie Moreno (R-Ohio), who sits on both the Homeland and Budget panels who described Paul as “well-meaning” and “principled,” said if Paul’s goal was to change people’s minds, the Kentuckian would have been better off working with fellow members of his conference.

“If your objective is just to have a point of view, that’s one thing you can do; but if your objective is to rally support, then you have a different path,” Moreno said.

Paul has even lost an ally in Sen. Ron Johnson, another steadfast fiscal hawk who leadership hopes will ultimately support the megabill. Johnson said last week he will support the administration’s border security funding request after hearing directly from Stephen Miller, a top White House adviser and architect of the president’s immigration platform.

Graham said he and Senate Majority Leader John Thune requested that Miller brief Senate Republicans on the administration’s border security needs to “contest the analysis of Senator Paul.” Paul did not attend the briefing, nor has he spoken to Graham about their differences, according to Graham.

In a statement, Abigail Jackson, a spokesperson for the White House, had no direct comment on Paul’s exclusion from the process.

“The administration is profoundly grateful for Senator Graham and the Budget Committee’s excellent work on the Homeland Security Text,” said Jackson, adding that it would aid Trump’s actions to crack down on illegal border crossings by “funding at least one million removals, adding new ICE and border personnel, expanding detention capacity, and giving bonuses to hardworking Border Patrol and ICE agents.”

The framework put forward by Graham, which Senate GOP leadership is expected to draw from in the final package they hope to vote on next week, would mirror the House-passed funding levels by allocating about $46.5 billion for the border wall and surrounding infrastructure and $5 billion for Customs and Border Protection facilities and checkpoints.

In contrast, Paul’s proposal would allocate just $6.5 billion in border wall and related infrastructure funding, with only $2.5 billion for CBP facilities and checkpoints.

When asked about concerns he was operating without consulting his fellow Republicans on the panel, Paul emphasized that no committee is holding a markup on their contributions for the megabill.

“There were no committee votes on what the product would be,” Paul said. “All of the drafts were done by the chairman of each committee.”

Paul also said he thought some of the provisions of his proposal unrelated to border security would end up in the final bill, and that he was involved in talks with the parliamentarian about what provisions would be germane under the strict rules governing the filibuster-skirting budget reconciliation process Republicans want to use to pass the megabill.

A Paul spokesperson did not respond to a request for comment about whether he still expected to have a say in negotiations with the parliamentarian.

Jordain Carney contributed to this report.