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Senate Parliamentarian Takes an Ax to the Big Beautiful Bill

Senate TV via AP

Elizabeth McDonough does not appear to be an assassin. But the mild-mannered, 59-year-old lawyer, who has served as Senate Parliamentarian since 2012, just drew a bead on Senate Republicans when she gave their Big Beautiful Bill (BBB) a "Byrd Bath." 

The "Byrd Bath" refers to the Byrd Rule, which governs what can be included in any reconciliation bill. Generally speaking, only measures that are aimed at changing spending or revenues are allowed under the strict rules that govern reconciliation. If a reconciliation bill fails to pass muster with the parliamentarian after undergoing the "Byrd Bath," it will be brought to the floor under "regular order," meaning it will be subject to the 60-vote filibuster rule.

McDonough ruled against several provisions under the jurisdiction of the Senate committees on Agriculture, Banking, Environment and Public Works, and Armed Services, with two major provisions that would cut tens of billions of dollars from the budget being disqualified. Unless a workaround can be found that meets with McDonough's approval, the bill will be sunk.

The first major provision that McDonough rejected was the effective dismantling of the Consumer Financial Protection Bureau (CFPB). Senate Republicans wanted to zero out the CFPB's budget, which Congress doesn't authorize, but instead the Federal Reserve budgets for it from its general fund. The Reconciliation bill would have cut $6.4 billion from the agency by reducing its maximum funding to zero percent of the Federal Reserve’s operating expenses. This would have eliminated the agency.

The Hill:  

 She also ruled against language cutting $1.4 billion in costs by reducing the pay of Federal Reserve staff, cutting $293 million by reducing the Office of Financial Research funding and cutting $771 million by eliminating the Public Company Accounting Oversight Board.

Sen. Jeff Merkley (Ore.), the ranking Democrat on the Senate Budget Committee, touted the parliamentary rulings.

“The Senate Parliamentarian advised that certain provisions in the Republicans’ One Big, Beautiful Betrayal will be subject to the Byrd Rule – ultimately meaning they will need to be stripped from the bill to ensure it complies with the rules of reconciliation,” Merkley said.  

McDonough also nixed cutting the salaries of Fed employees by $1.4 billion, $293 million by reducing the Office of Financial Research funding, and cutting $771 million by eliminating the Public Company Accounting Oversight Board (PCAOB). Altogether, the cuts amount to about $8 billion. 

There are two provisions relating to climate that were also cut from the BBB. They include reform of the permitting process for green projects that would have allowed the projects to proceed under an expedited permitting regimen for a fee. McDonough also refused to allow a repeal of Biden's tailpipe emissions rule, which was set to take effect in 2027.

But the biggest hurdle the GOP will have to get over to pass the bill is finding a way to save more than $200 billion from an Agriculture Committee bill that would have forced states to share the costs of the Supplemental Nutrition Assistance Program (SNAP). 

Politico:

The cost-sharing plan, which was first put forward by House Republicans, sparked backlash from state officials and concerns within the caucus. The bill would make states pay for SNAP benefits for the first time using a sliding scale based on their payment error rates.

The Senate Agriculture Committee introduced a scaled-back version of the House GOP’s cost-sharing plan earlier this month. Without it, Senate Republicans will struggle to find enough cuts to pay for their policy priorities and the $67 billion farm bill package they included — all with an ambitious timeline of delivering the megabill to President Donald Trump’s desk by July 4.

McDonough is used to derailing party agendas. She put a stake in the heart of many of Joe Biden's most dangerous plans. Now she's thrown a monkey wrench into the GOP's big plans.

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