The Senate GOP’s version of President Donald Trump’s ‘big, beautiful bill’ has encountered significant hurdles after several key provisions were rejected by the parliamentarian during a Byrd Bath review. The Senate’s Byrd Rule, which requires that all provisions in a budget reconciliation bill must be deficit-neutral, has forced lawmakers to scrutinize the massive legislative package for compliance. The failure of provisions related to the Consumer Financial Protection Bureau, defense spending limits, and environmental regulations has left Republicans with a difficult choice: remove them to avoid a filibuster or face an uphill battle to pass the bill without Democratic support.
Among the most contentious provisions was the attempt to defund the CFPB, a long-standing target of the GOP since its inception in 2008. The provision would have eliminated the agency altogether, cutting $6.4 billion in spending. Senate Banking Committee Chair Tim Scott, R-S.C., acknowledged the challenge but stated the GOP would continue working with the parliamentarian to refine the provision. The failure to pass the CFPB defunding raises questions about the party’s commitment to reducing federal spending and its willingness to challenge the agency, which is seen as a key regulatory body.
Defense spending guardrails, which would have required Pentagon officials to outline spending plans by a specific deadline, also failed to meet the Byrd Rule. This language aimed to curtail what critics view as excessive military spending, but the provision’s failure highlights the difficulty of balancing fiscal responsibility with national security priorities. Other provisions under review included cuts to the Financial Research Fund and changes to the oversight structure of the Public Company Accounting Oversight Board, which would have reduced costs by hundreds of millions of dollars.
The rejection of provisions from the Biden-era Inflation Reduction Act, including the repeal of tailpipe emissions standards for 2027 and later model years, underscores the growing ideological divide between the Senate GOP and the administration. The failure of these provisions could have major implications for environmental policy and climate goals, as the Senate GOP’s stance on such issues has increasingly come under scrutiny. Senate Democrats have leveraged the Byrd Bath process to inflict as much legislative pain as possible, aiming to slow down the bill’s progress and force Republicans to compromise.
Senate Majority Leader John Thune, R-S.D., has remained resolute in his refusal to overrule the parliamentarian, indicating that the party is willing to accept the consequences of the Byrd Rule. However, the failure to pass key provisions may ultimately delay the bill’s passage, further complicating efforts to get it to President Trump’s desk by July 4. As debates continue, the Senate GOP’s ability to navigate this legislative obstacle will be critical in determining the final shape and viability of the ‘big, beautiful bill.’