Context:

Republican senators are facing several unresolved issues in their domestic policy bill, particularly concerning Medicaid's provider tax and the state and local tax policy, as they approach the July 4th recess. Senators are engaged in negotiations to potentially create a provider fund for rural hospitals, with discussions about allocating at least $100 billion to address their concerns. Meanwhile, efforts are underway to find a compromise on the state and local tax provisions, with Sen. Markwayne Mullin proposing a solution that neither side fully embraces but may be necessary to move forward. The Senate is also dealing with the Byrd rule compliance process, requiring adjustments to ensure the bill can pass with a simple majority. The GOP leadership remains optimistic about meeting the deadline, despite the complexities and outstanding issues that need resolution before the bill can be finalized and voted on in both the Senate and House.

Dive Deeper:

• Republican senators are striving to resolve key issues in their domestic policy bill, including concerns about Medicaid's provider tax provision and the state and local tax policy, as they aim to finalize the bill before the July 4th recess.

• Sen. Josh Hawley advocates for the protection of rural hospitals by proposing a provider fund option, suggesting a potential allocation of at least $100 billion, though no commitment to this amount has been made yet.

• Sen. Markwayne Mullin is negotiating a compromise on the state and local tax provisions, suggesting retaining the cap at $40,000 while adjusting the income threshold, a solution that may not satisfy all parties but is seen as necessary for progress.

• The GOP faces the challenge of ensuring the bill complies with the Byrd rule, involving a complex review process with the Senate parliamentarian, allowing the bill to pass with a simple majority.

• Senate Agriculture Committee Chair John Boozman is working to amend provisions related to the Supplemental Nutrition Assistance Program to extend implementation timelines, aiming to make the bill Byrd compliant.

• Senate Majority Leader John Thune expresses confidence in the process, despite the lack of complete control over the rule compliance, as the leadership makes counter offers to flagged issues.

• Sen. John Kennedy remains uncertain about the timing of the vote, indicating that while the bill may eventually pass, the current state of negotiations is precarious, described as being held together with 'happy thoughts and spit.'