Hard truths slam Mike Johnson on "one big, beautiful bill"
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House Speaker Mike Johnson (R-La.) is choosing his words very carefully, as he attempts to bridge the vast differences in his party over the "one big, beautiful bill."
- "I said 'likely' for a reason because it's not a final decision," Johnson said late Wednesday. He appeared to be referring to his comments on Tuesday about ruling out a move to cap federal funding per Medicaid enrollee.
Why it matters: Four weeks after they agreed to the bill's framework, House Republicans appear more interested in making demands than making deals.
🔥 On multiple fronts, small but dug-in pockets of lawmakers are ready to tank the entire bill if Johnson can't get everyone else to cave.
- Medicaid benefits: Moderates are rebelling against per-capita spending caps, as well as shifting some of the cost burden to the states.
- State and local tax deduction (SALT): Lawmakers are making slow progress at best on raising the cap above $10,000 a year. Some conservatives think it should be $0.
- Spending cuts: 32 House conservatives warned again Wednesday they'll vote no without at least $2 trillion in cuts. The biggest target is Medicaid.
💣 These core tensions are why the deadlines keep slipping, with pressure rising for leaders in both chambers.
Driving the news: The House Freedom Caucus roared Wednesday, restating the original deal that every dollar Congress wants to go beyond $4 trillion in tax cuts will require an equal number of cuts above the $1.5 trillion mark.
- Johnson calls it a "ratchet system," and last week he told Axios he's still committed to it.
- "If we can't find a requisite number of savings, that means there's less that we might be able to achieve in the overall package," he said.
- The challenge for Johnson is that one group of members is demanding more tax cuts than another group is willing to offset.
Zoom in: Blue-state Republicans are throwing out some pretty high numbers on where they want the new SALT deduction limits to land.
- Rep. Young Kim (R-Calif) tossed out $62,000 for the cap, far higher than the current $10,000 limit.
Between the lines: Johnson changed course on the controversial per-capita caps for Medicaid after House Energy and Commerce Chair Brett Guthrie (R-Ky.) told reporters on Wednesday that those cuts were, in fact, being considered.
- "He's the chairman," Johnson said.
Zoom out: GOP senators spent a lot of time on Wednesday talking about what the House is up to, according to attendees at the Senate's retreat.
- Senate GOP leader John Thune (R-S.D.) and Senate Finance Committee Chair Mike Crapo (R-Idaho) reiterated the Senate's commitment to serious savings, and they are keeping all options on the table for how to save on Medicaid.
- Thune "feels the burden of the opportunity to get some real savings," Sen. Kevin Cramer (R-N.D.) told Axios.
- "I never heard him express frustration about it," Cramer said. "If anything, he expressed the need to really stick close to the House. And if they come up short, then to be prepared to do some more."
Editor's note: This article has been corrected to attribute a quote to Sen. Kevin Kramer (not Sen. Mike Crapo).
