New Byrd rulings keep provider tax provisions
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Asylum fees and moving a space shuttle: What’s gone from Trump and the GOP’s tax bill?
Senate Republicans are trying to rescue parts of President Donald Trump’s ambitious second-term legislative agenda. The GOP-controlled chamber has hit several speed bumps along the way. The Senate parliamentarian has ruled that many Republican-sought provisions violate the Byrd Rule. Republicans are cooking up alternative proposals to major sections in order to reach their budget savings goals and meet other promises while keeping anxious caucus members in their herd. The proposal would give a green light to the Federal Communications Commission to auction 600 megahertz of spectrum through 2034, which lawmakers in favor said would rake in $85 billion to offset the Trump tax cuts. It would also move the most utilized Space Shuttle – the Discovery – to a non-profit museum outside Washington, D.C., to help offset the cost of moving the shuttle in the first place. It’s the first time the space shuttle has been moved outside the U.S. in 39,000 days and spent 365 days in orbit. It flew from the Smithsonian’s air museum in Texas to the Kennedy Space Center in Florida.
Senate Republicans are trying to rescue parts of President Donald Trump’s ambitious second-term legislative agenda as Congress’ bureaucracy continues taking bites out of his so-called “big, beautiful bill” that is headed for votes in Washington this weekend.
Trump and GOP leaders have imposed a July 4 deadline on themselves to pass the massive legislative package, which focuses mainly on extending tax cuts from his first term and expanding other MAGA movement priorities as part of his bulldozing return to power.
“Now we have the opportunity to pass a bill that advances all of these priorities and sets our country up for better days ahead,” Senate Majority Leader John Thune, R-South Dakota, said during a June 27 floor speech.
The Republican-controlled chamber has hit several speed bumps along the way, however, not due to resistant Democrats, who flatly oppose major portions of Trump’s agenda, or reluctant GOP members who aren’t satisfied with the cost reductions.
Instead it has been the chamber’s referee, Senate Parliamentarian Elizabeth MacDonough, acting as the proposal’s greatest obstacle by ruling that many Republican-sought provisions violate the Byrd Rule, which prescribes which bills can pass with a simple 51-vote majority or require the 60-vote threshold to break a filibuster. The basics: To avoid a filibuster, all the provisions of a bill must directly impact the federal budget.
The parliamentarian’s initial decisions mean Republicans have yanked out efforts to curb environmental regulations; restrict federal judges’ powers; bulk up immigration enforcement; and cut funding from a consumer protection agency. She also ruled against provisions that would’ve cut Medicaid spending on health care programs for undocumented immigrants.
“We have been successful in removing parts of this bill that hurt families and workers, but the process is not over, and Democrats are continuing to make the case against every provision in this big, beautiful betrayal of a bill that violates Senate rules,” Sen. Jeff Merkley, D-Oregon, the ranking member of the Senate Budget Committee, said in a press release.
In response, Senate Republicans and the White House are cooking up alternative proposals to major sections in order to reach their budget savings goals and meet other promises while keeping anxious caucus members in their herd.
“This bill delivers on the mandate the American people gave Republicans last year… It’s right around the corner,” Thune said.
But as the Senate GOP scrambles to help get the proposal to the president’s desk with a marathon of votes expected this weekend, the parliamentarian determined in recent days there are still more provisions in violation of the critical Senate rule named after the late-Sen. Robert Byrd, D-West Virginia.
Here’s what else is coming out and coming back to the massive measure.
Asylum-seeker fees and other immigration reforms
One item that is bound to fire up the MAGA base that is being yanked out of the mega-bill are various new fees on migrants seeking asylum in the U.S., which is part of the Trump administration’s larger anti-immigration crackdown.
The Senate parliamentarian ruled against various provisions that Republicans were touting such as an attempt to charge migrants a $1,000 fee when applying for asylum; a $100 fee on migrants who request a continuance in immigration court; a $250 fee for applying to the diversity visa lottery; and a $400 fee to process diversity visa applications.
She also struck out language that would have required a $5,000 bond to sponsor an unaccompanied child who fails to appear in immigration court and language speeding up the removal of non-citizens who are arrested for allegedly breaking laws that were strengthened by the bipartisan Laken Riley Act Trump signed earlier this year.
Auctioning broadband spectrum
Republicans had been working for months behind the scenes on a plan that supporters of the bill said would free up hundreds of megahertz of wireless spectrum and raise needed revenue.
Under the Senate’s proposed bill, the federal government would give a green light to the Federal Communications Commission to auction 600 megahertz of spectrum through 2034, which lawmakers in favor said would rake in $85 billion to help offset the Trump tax cuts.
Others point out it would be a big win for mobile carriers such as AT&T, Verizon and T-Mobile who want a licensed system to continue after the FCC’s ability to auction off spectrum expired in 2023.
But the parliamentarian advised that the idea must go through a different legislative process requiring a filibuster-proof vote.
NASA space vehicle transfer
One tiny provision you may not have heard about in the massive proposal is a plan to relocate the Space Shuttle Discovery – the most utilized orbiter in U.S. history – from the Smithsonian’s air and space museum outside Washington, D.C., to a non-profit in Texas.
Moving the 172,000-pound NASA shuttle, which flew 39 Earth-orbital missions and spent 365 days in space, appears to cost roughly $85 million. It’s a major priority for Texas Republican Sens. John Cornyn and Ted Cruz, who filed a bill in April seeking to transfer the behemoth to a place near NASA’s Johnson Space Center in Houston.
The Space Shuttle Discovery is the only shuttle still owned by the federal government.
A.I. moratorium returns
It wasn’t all bad news for Senate Republicans, however, as the chamber’s referee ruled June 27 that a provision prohibiting states from regulating artificial intelligence for a decade can remain in the package.
The Senate version is looking to dole out $500 million to a program dedicated to increasing broadband access and that specifies that money can be used for developing A.I. models and systems, which is a rapidly developing technology.
MacDonough initially expressed concern that the provision, siding with Democrats who asserted it would break the Byrd rule by impacting $42 billion in broadband funding. But she later said that specific language won’t violate the rule as long as the legislation applies to the new $500 million spending provided in the reconciliation bill.
A Running List of Policies Rejected From the Republican Megabill
Republicans are working on changes to the budget bill. The bill must be approved by the Senate by the end of the month to avoid a Democratic filibuster. Many of the changes would have little or no impact on the budget, but some would have a big impact. The Senate parliamentarian will make the final decision on whether the bill is approved or not. The vote is expected to take place in the next few days, and the bill could be passed as early as next week.
Republicans continue to rewrite some provisions to comply with the rules.
The bill carrying much of President Trump’s domestic agenda is facing examination by the Senate parliamentarian, a nonpartisan official who enforces the chamber’s complex rules — and who can effectively strip out parts of the bill that don’t comply.
Republicans will be able to push the tax and entitlement package through with a simple Senate majority, avoiding a Democratic filibuster, as long as it complies with the “Byrd Rule,” which has governed the budget reconciliation process they are using since the 1980s. Under the rule, each of the bill’s provisions:
Must produce a non-incidental change to the federal budget. In other words, it must primarily be a change to spending or revenue. Provisions with no or minimal budgetary impact, or that are mostly there for policy reasons, are supposed to be struck, but the decision can be subjective.
May not increase the deficit outside of the budget window. In this case, provisions can’t add to deficits past 2034.
May not make changes to Social Security.
The process of review is known informally in the Senate as the “Byrd bath.” So far, the parliamentarian, Elizabeth MacDonough, has determined that dozens of provisions do not pass muster to be included in the megabill, in most cases because they represent policy changes with only incidental effects on the budget.
Republican committee leaders have said they plan to rewrite some of the struck provisions to make them compliant.
Rejected provisions
Most of the struck provisions would have had a small effect on the bill’s bottom line, but there are a handful that would have saved hundreds of billions of dollars as written. Some provisions were policy priorities for some Republicans, and their removal could make those lawmakers less enthusiastic about supporting the bill. What is likely to be the most consequential ruling, on whether Republicans may use a budget maneuver to exclude the cost of tax cut extensions, is still outstanding.
We’ve highlighted instances where Republicans have said they have made or are working on adjustments to the offending portions. Green highlights represent provisions that have been revised and approved.
Who is the senate parliamentarian Elizabeth Macdonough? What is Byrd rule?
Byrd Rule is a rule that prevents the Senate from passing legislation without a majority vote. The rule applies to bills that are not subject to a 60-vote threshold. The Senate is expected to vote on the bill by the end of the week. The bill includes a provision that would require the Senate to approve any changes to the law before they can be implemented. The law would also require the House of Representatives to approve the changes before they could go into effect. The House has already approved the changes, but the Senate will have to approve them before the bill can go through the Senate for them to take effect.
Senate parliamentarian Elizabeth MacDonough disqualified over a dozen provisions in the GOP’s tax and immigration bill, including several restrictions on Medicaid, penalties for disclosure of taxpayer information, deregulation of gun silencers, student aid and other assistance for specific non-citizen immigrants, and prohibition on Medicaid and Children’s Health Insurance Program funding for gender-affirming care, according to news officials.
Republicans have been trying to fast-track the spending bill through the chamber using the budget reconciliation process that allows bills to be passed with a simple majority and avoid a Senate filibuster. However, this process has strict requirements for what can be passed.
One of MacDonough’s more significant rulings was over the bill’s limits on Medicaid provider tax, which means that Senate Republicans would need to revamp the provision to cap states’ ability to collect more federal Medicaid funding through health care provider taxes or scrap it entirely to move forward with the bill. This particular provision would have funded much of the bill’s tax cuts.
Senate republicans have been working on getting the final spending bill passed ahead of the White House’s request for a July 4 deadline.
What is the parliamentarian?
In simple terms, the Senate parliamentarian is a non-partisan advisor to the Senate, providing guidance on rules, procedures and precedents. They also refer legislation and other communications to appropriate Senate committees, acting as a referee to ensure the Senate operates according to its established rules.
According to the US Senate, the parliamentarian advises the presiding officer, senators, representatives and their staffs on all matters requiring the interpretation of the Standing Rules of the Senate, the precedents of the Senate, unanimous consent agreements, and provisions of public law affecting the proceedings of the Senate.
MacDonough, 59, is the first woman to hold the position of Senate parliamentarian.
The parliamentarian plays a key role in deciding what can or cannot be included in budget reconciliation legislation under the Byrd Rule.
What is the Byrd Rule?
The Byrd Rule, formally known as the Budget Act is a Senate rule that limits what can or cannot be included in a budget reconciliation bill. It’s a special process that can bypass the usual Senate filibuster rules and pass with a simple majority (51 votes) in the Senate, rather than the usual 60 votes needed to overcome the filibuster.
In its essence, the Byrd Rule it prevents extraneous matter, defined as provisions that do not affect the budget or increase the deficit after a ten-year window, from being added to these bills. It also prohibits changes to Social Security
The Senate parliamentarian advises on whether a provision violates the Byrd Rule, albeit the presiding officer of the Senate as a whole can overrule their advice, if they choose to do so.
What The Big Student Loan Senate News Means For Borrowers, Parents, And Students
Senate Republicans are trying to pass reconciliation legislation that would remake federal student loan repayment. The Senate Parliamentarian ruled that several provisions of the Senate reconciliation bill violate what’s known as the Byrd Rule. If the ruling stands, this could effectively doom these provisions, as Democrats are not expected to join Republicans in supporting the legislation. But this isn’t the end of the process, and much uncertainty remains. Here’s what student loan borrowers should know, and how the new Senate update may impact borrowers, parents, and students. The changes would hit current borrowers enrolled in income-driven repayment particularly hard. Under the proposals, the ICR, PAYE, and SAVE plans would all be repealed, and potentially a newer and more affordable version of IBR, as well. Some borrowers could see their payments skyrocket, since IBR is a much more expensive plan than PAYE or SAVE. But the Parliamentarian’s ruling this week scrambles these proposals. It is highly unlikely that seven Senate Democrats would join 53 Senate Republicans to pass this bill.
Millions of federal student loan borrowers got some unexpected good news this week, as Republican-led plans to make sweeping reforms to federal student loan repayment and loan forgiveness programs have stalled, at least temporarily. Unless Senate Republicans can come up with a solution, key elements of their legislative plans may not survive.
The latest development is associated with budget reconciliation, a complicated legislative process that allows lawmakers to pass legislation with simple majorities in the House and the Senate, effectively bypassing a Senate filibuster (which requires 60 votes to overcome). Because Republicans have only 53 seats in the Senate, and they do not want to have to reply on Democratic votes, they are trying to push through President Donald Trump’s main legislative priorities – including huge tax cuts and major reductions in government spending – through reconciliation. House Republicans successfully passed their reconciliation bill in May.
But Senate Republicans have hit a snag. On Thursday, the Senate Parliamentarian, who is a nonpartisan official tasked with interpreting and issuing rulings on senate rules, determined that several provisions of the Senate reconciliation bill violate what’s known as the Byrd Rule. This rule requires that reconciliation legislative comply with certain parameters, including that the provisions must directly relate to the budget, can’t contain unrelated policy priorities, and can’t grow the deficit beyond the budget window provided in the bill. The Senate Parliamentarian ruled that several provisions that would remove or curtail popular student loan programs do not pass the Byrd Rule, and therefore would require 60 votes to pass the Senate. If the ruling stands, this could effectively doom these provisions, as Democrats are not expected to join Republicans in supporting the legislation.
But this isn’t the end of the process, and much uncertainty remains. Here’s what student loan borrowers should know, and how the new Senate update may impact borrowers, parents, and students.
Current Borrowers Could Maintain Access To Existing Student Loan Repayment Plans
The GOP reconciliation bills would, if enacted, fundamentally reshape federal student loan repayment by repealing most existing repayment plans – including for current borrowers. The changes would hit current borrowers enrolled in income-driven repayment particularly hard. Under the proposals, the ICR, PAYE, and SAVE plans would all be repealed, and potentially a newer and more affordable version of IBR, as well. All income-driven repayment plans are designed to provide reasonable monthly payments tied to income and family size, with student loan forgiveness after 20 or 25 years of payments. But with the repeal of these plans, current borrowers would be switched to a modified version of the “older” IBR plan. Advocates estimated that some borrowers could see their payments skyrocket, since IBR is a much more expensive plan than PAYE and SAVE.
But the Senate Parliamentarian’s ruling this week scrambles these proposals. The Parliamentarian ruled that repealing these student loan repayment plans for current borrowers would violate the Byrd Rule, thus requiring 60 votes to pass the Senate. It is highly unlikely that seven Senate Democrats would join 53 Senate Republicans to pass this bill. If the ruling holds, it could mean that current student loan borrowers get to keep their repayment plan.
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New Student Loan Borrowers Would Still Lose Access To Current Repayment Plans
Importantly, however, the Senate Parliamentarian’s ruling only applies to current borrowers who are in repayment on their student loans. The Parliamentarian ruled that the provisions of the reconciliation bill that would cut off access to current repayment plans for new student loan borrowers going forward would not violate the Byrd Rule and, therefore, could remain in the bill.
This means that for borrowers who take out new student loans on or after July 1, 2026, under the provisions of the bill, they would only have access to two repayment plans. One would be a Standard plan, with monthly payments stretched out over a term ranging from 10 to 25 years, depending on the original loan balance. The other would be a new income-driven repayment plan called the Repayment Assistance Plan, or RAP. RAP would use a repayment formula that differs in many ways from current IDR options, but would likely be relatively affordable for many borrowers. Payments under RAP would be higher than current IDR plans for the lowest-income borrowers, which has drawn criticism from many borrower advocates. RAP would also have a 30-year repayment term before a borrower could qualify for student loan forgiveness – far longer than the 20- and 25-year terms presently available. But RAP also would have some other benefits including an interest subsidy designed to prevent runaway balance growth, and the ability to direct some payments to loan principal.
Parent PLUS Borrowers Could Maintain Access To Income-Driven Student Loan Repayment Plan
Parent PLUS borrowers may also benefit if the Senate Parliamentarian’s ruling holds. Under both the House and Senate versions of the reconciliation bill, most Parent PLUS borrowers could be completely cut off from income-driven repayment plans, as the bills would repeal ICR – the only income-driven plan that Parent PLUS borrowers are eligible to enroll in. While consolidated Parent PLUS loans that are already enrolled in ICR at the time of the bill’s passage would be grandfathered in (and moved to the IBR plan, like other borrowers in the repealed plans), all other Parent PLUS borrowers would have no option to repay their student loans in accordance with their income, as they wouldn’t be eligible for RAP. Some critics have warned that without any affordable repayment plan option, Parent PLUS loan defaults could skyrocket, particularly for older borrowers on a fixed income.
If the repeal of ICR drops from the GOP Senate bill, current Parent PLUS borrowers who are already in repayment could continue to be eligible for the ICR plan. However, taking out new student loans or consolidating their loans after July 1, 2026 would make them a “new borrower” and then ineligible. So, if the Senate Parliamentarian’s ruling holds, Parent PLUS borrowers would still need to be strategic about maintaining ICR eligibility.
GOP Senators Are Racing To Figure Out Whether Student Loan And Other Provisions Can Be Salvaged
Despite the setback, congressional Republicans are still trying to figure out a path forward in light of the Senate Parliamentarian’s ruling. And President Donald Trump has made clear that he wants the legislation to remain on track for passage by July 4th, which was the original goal.
“I think he wants us to do what we can do to get him a bill” by the 4th, Senate Majority Leader John Thune (R-SD) told reporters after meeting with the president on Thursday.
Senate Republicans have a few choices. They can vote to override the Parliamentarian, although Thune has said quite clearly that this is not on the table, despite pressure from some conservative House Republicans. They can drop the contested provisions entirely, or put them up for a vote on the Senate floor knowing that they will not reach the 60-vote threshold. Or, more likely, Senate GOP lawmakers will rewrite elements of the bill so that it could comply with Senate reconciliation rules.
Ultimately, what happens during the next week will likely determine the fate of several key federal student loan repayment programs, and what millions of borrowers will have to pay on their student loans in the coming years.
Source: https://www.axios.com/pro/health-care-policy/2025/06/29/new-byrd-rulings-provider-tax