Senate Slogs Toward Passing Massive Reconciliation Bill as Federal Worker Provisions Removed

The U.S. Senate's bid to pass the “One Big Beautiful Bill”-- the massive $3.3 trillion package enacting much of President Trump’s domestic agenda– is fraught with tension in the Republican caucus and passage is not a sure thing.

The legislation would extend President Trump’s 2017 tax cuts, exempt tips and overtime pay from federal income taxes, increase military funding, provide about $77 billion for increased immigration enforcement, and cut about $1 trillion for Medicaid. It would also raise the U.S. debt ceiling. 

Senators worked through the overnight hours Monday into Tuesday for the so-called “vote-a-rama” on amendments to the legislation. At least 45 votes were taken on amendments, setting a new record for a domestic policy bill. 

Federal Worker Provisions Eliminated 

Regardless of what happens, federal workers got a dose of good news.

Nearly all the provisions targeting federal retirement benefits and civil service protections were removed from the final legislation by the Senate Budget Committee.

That means the mandatory rise in contribution rates in exchange for civil service protections are out as are restrictions on union official time and a filing fee to appeal a case to the Merit Systems Protection Board (MSPB). The removal of these comes after the Senate parliamentarian said most of the federal workforce provisions violated the Byrd Rule, which aims to prevent the inclusion of provisions that are “extraneous” to the federal budget. 

The only provision that remains is for OPM to conduct an audit for the Federal Employees Health Benefits Program as well as $100 million in funding for the Office of Management and Budget (OMB) to find “budget and accounting efficiencies” including through reorganizations.

Medicaid at Issue

Among the challenges for Majority Leader John Thune (R-SD), is getting Republicans on the same page on Medicaid cuts. Some Senators like Rick Scott (R-FL), say the nearly $1 trillion in cuts don’t go far enough, while others like Senators Lisa Murkowski (R-AK) and Susan Collins (R-ME) are on the fence about the bill, partly because of the health care cuts. 

Meanwhile, Senator Thom Tillis (R-NC) announced his opposition to the bill over the Medicaid cuts and promptly announced he would not seek reelection, after drawing the ire of President Trump. 

"Republicans are about to make a mistake on healthcare and betraying a promise,” Senator Tillis said on the Senate floor of the Medicaid cuts.

Passage Uncertain

Still, negotiations continue with Senator Murkowski seen as the key swing vote. This as Senate Majority Leader Thune can only afford to lose three Republicans and get the bill passed.

Senator Tillis, Senator Rand Paul (R-KY), and Senator Collins are all likely to vote against the bill, leaving Senator Murkowski as the key swing vote.  To sweeten the package, cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) in Alaska, were trimmed.

Even if it gets through the Senate, the bill will have to be passed again through the House. Chances of meeting President Trump’s self-imposed deadline to have the legislation signed by the Fourth of July are in serious jeopardy.