Congressional Deadlock Over Megabill as July 4 Target Hangs in Balance
House Speaker Mike Johnson has repeatedly expressed confidence that the Republican Party’s sweeping domestic policy bill, dubbed the ‘megabill,’ is still on track to pass by the self-imposed July 4 deadline. However, tensions between House and Senate leaders are creating uncertainty about the timeline for final passage. Johnson stated in an interview on Wednesday that while the bill remains ‘on track,’ its success hinges on the Senate approving a version that closely mirrors the House version passed last month. Senior GOP aides, however, have privately warned that the timeline could extend beyond the July 4 deadline if the Senate makes significant changes to the House bill, potentially adding several weeks or even months to the process.
The core of the dispute lies in ensuring that the Senate’s version of the bill aligns with the House’s original proposal to avoid prolonged negotiations. Leaders in both chambers and the White House are pressing for agreement to prevent the House from needing to make substantial changes after the Senate passes the legislation, which could lead to further delays. Key issues in contention include the level of spending cuts, the extension of business tax cuts, and the cap on the state and local tax deduction (SALT cap). While there is optimism that a ‘wraparound’ amendment could be negotiated at the end of the protracted amendment process known as ‘vote-a-rama,’ the likelihood of such a compromise remains uncertain.
Senate Majority Leader John Thune has been actively coordinating with House leaders to streamline the process and avoid potential setbacks. Thune emphasized that the complexity of the legislation necessitates careful coordination to avoid logistical challenges. Meanwhile, some House GOP rebels, such as Chip Roy and Scott Perry, have been in discussions with Senate fiscal hawks, including Mike Lee, Ron Johnson, and Rick Scott, to push for deeper spending cuts and maintain the House’s rollback of certain clean energy tax credits. The White House is also exerting pressure, with Trump’s border czar, Tom Homan, attending a Senate GOP lunch to stress the importance of including additional funding for immigration enforcement in the bill.
Despite these efforts, both Johnson and Thune have met separately with President Donald Trump on Monday. Following these meetings, Trump acknowledged during a White House event that the July 4 deadline for the megabill might need to be extended. While Trump expressed willingness to allow for a delayed timeline, the uncertainty remains high as the bill moves toward its final stages. With Senate committees still rolling out pieces of the legislation and Finance Chair Mike Crapo overseeing the most contentious aspects, both chambers are preparing for a critical negotiation phase in the coming weeks.