logo
Senate's Byrd Rule Upends Trump's ‘Big Beautiful Bill'

Senate's Byrd Rule Upends Trump's ‘Big Beautiful Bill'

Time​ Magazine4 hours ago

She wasn't elected and she doesn't cast votes. But over the past week, Elizabeth MacDonough, the quietly powerful Senate parliamentarian, may have had more influence over Donald Trump's legislative agenda than anyone else in Washington.
After meeting with Republicans and Democrats behind closed doors, MacDonough in recent days has significantly shrunk the size of the President's sweeping tax-and-spending package known as the 'One Big Beautiful Bill' by striking several measures that violated an arcane, decades-old Senate rule known as the Byrd Rule, which prohibits provisions considered 'extraneous' to the federal budget in the kind of legislation Republicans are trying to craft.
One of the main GOP provisions the parliamentarian said did not satisfy the Byrd Rule was a measure to push some of the costs of federal food aid onto states, sending Republicans back to the drawing board to find the billions in savings that provision would have yielded. MacDonough also rejected measures to bar non-citizens from receiving SNAP benefits and one that would have made it more difficult to enforce contempt findings against the Trump Administration. MacDonough could issue additional guidance this week.
The spate of rulings from the Senate parliamentarian, an official appointed by the chamber's leaders to enforce its rules and precedents, has significantly complicated the prospects of passing Trump's tax and spending bill by the July 4 deadline he imposed on Congress. Republicans have been scrambling for months to secure enough votes for Trump's megabill, which centers on extending his 2017 tax cuts and delivering on several of his campaign promises, such as boosting border security spending and eliminating taxes on tips. Support for the package has softened this month as more Republicans warn that it would add trillions of dollars to the deficit without further spending cuts.
But the parliamentarian's latest rulings will force Republicans to either strip those provisions from the bill or secure a 60-vote supermajority to keep them in, a nearly impossible hurdle given that Senate Republicans only hold 53 seats. MacDonough ruled that some of the provisions have little business in a budget reconciliation bill, which can make big changes to how the federal government spends money but, under Senate rules, isn't allowed to substantively change policy.
MacDonough's rulings came about after days of behind-the-scenes meetings between her office and Senate staff. They illustrate the often-overlooked power of Senate procedure—and the person tasked with interpreting it. MacDonough, a former Justice Department trial attorney and the first woman to ever serve as Senate parliamentarian, is Washington's ultimate rules enforcer. She was appointed in 2012 and has struck prohibited measures from reconciliation bills several times under both Republicans and Democrats.
Now, the parliamentarian's rulings may force Republicans back to the drawing board just as they were hoping to finalize their legislative centerpiece.
Here's what to know about the rejected measures.
What is the Byrd Rule?
The Byrd Rule, adopted in 1985, is a procedural constraint named after the late Senator Robert C. Byrd of West Virginia to prohibit 'extraneous' provisions from being tacked onto reconciliation bills, which are fast-tracked budget packages that allow legislation to pass with a simple majority, bypassing the 60-vote filibuster threshold.
The rule makes it so that every line of a reconciliation package must have a direct and substantive impact on federal spending or revenues. Provisions that serve primarily policy goals—rather than budgetary ones—are subject to elimination by a parliamentary maneuver known as a point of order. Whether a point of order is sustained is ultimately made by the parliamentarian, who is essentially the Senate's umpire tasked with providing nonpartisan advice and ensuring that lawmakers are complying with the Senate's rules.
Parliamentarians often face backlash during the budget reconciliation process, when they determine whether policy proposals comply with the constraints of the Byrd Rule.
What's been cut so far?
MacDonough's rulings have invalidated a number of headline-grabbing GOP provisions, including a plan requiring states to pay a portion of food benefits—the largest spending cut for SNAP in the bill.
The SNAP measure, which the parliamentarian said violated the Byrd Rule, would have required all states to pay a percentage of SNAP benefit costs, with their share increasing if they reported a higher rate of errors in underpaying or overpaying recipients. Some lawmakers warned their states would not be able to make up the difference on food aid, which has long been provided by the federal government, and could force many to lose access to SNAP benefits.
Republican Sen. John Boozman of Arkansas, the chairman of the Agriculture Committee, said in a statement that he's looking for other ways to cut food assistance without violating Senate rules.
Another rejected provision would have zeroed out $6.4 billion in funding of the Consumer Financial Protection Bureau, effectively shuttering the agency. The bureau was created by Democrats as part of the 2010 Dodd-Frank Act in the aftermath of the financial crisis as a way to protect Americans from financial fraud. Republicans have long decried the CFPB as an example of government over-regulation and overreach. 'Democrats fought back, and we will keep fighting back against this ugly bill,' said Senator Elizabeth Warren of Massachusetts, who said the GOP plan would have left Americans vulnerable to predatory lenders and corporate fraud.
The Senate parliamentarian also blocked a GOP provision intended to limit courts' ability to hold Trump officials in contempt by requiring plaintiffs to post potentially enormous bonds when asking courts to issue preliminary injunctions or imposing temporary restraining orders against the federal government.
Democrats hailed that decision by the parliamentarian, noting that it would have severely undermined the judiciary's ability to check executive overreach. Senate Democrats 'successfully fought for rule of law and struck out this reckless and downright un-American provision,' Senate Minority Leader Chuck Schumer said in a statement.
MacDonough also nixed provisions to reduce pay for certain Federal Reserve staff, slash $293 million from the Treasury Department's Office of Financial Research, and dissolve the Public Company Accounting Oversight Board, which is tasked with overseeing audits of publicly traded companies. Each of these proposals, she ruled, either lacked sufficient budgetary impact or were primarily aimed at changing policy, not federal revenues or outlays.
MacDonough also rejected language in the bill drafted by the Senate Environment and Public Works Committee that would have exempted certain infrastructure projects from judicial review under the National Environmental Policy Act. The rejected proposal would have allowed companies to pay a fee in exchange for expedited permitting, a move Republicans argued would streamline bureaucratic delays.
Also disqualified was a measure to repeal the Biden Administration's tailpipe emissions rule for cars and trucks manufactured after 2027. MacDonough ruled that the environmental provisions were either insufficiently tied to federal spending or failed to meet the Byrd Rule's strict thresholds for inclusion.
Are the parliamentarian's rulings final, or could they be overturned?
The parliamentarian's decisions could, in theory, be overturned. Senate Majority Leader John Thune of South Dakota has the authority to ignore her ruling by calling for a floor vote to establish a new precedent—essentially overruling the Senate's referee.
Parliamentarians have been ignored in the past, though it is quite rare. In 1975, Vice President Nelson Rockefeller ignored the parliamentarian's advice as the Senate debated filibuster rules. MacDonough has been overruled twice before: in 2013, when Democrats eliminated filibusters to approve presidential nominees, and in 2017, when Republicans expanded the filibuster ban to include Supreme Court nominations.
But Thune has signaled he has no intention of going down that path this time. 'We're not going there,' the Senate Majority Leader said on June 2 when asked by reporters about overruling MacDonough.
Thune could also fire the Senate Parliamentarian and replace her with one willing to interpret the rules more in line with how Senate Republicans view them.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Pre-Markets Look Toward Sunny Climes
Pre-Markets Look Toward Sunny Climes

Yahoo

time24 minutes ago

  • Yahoo

Pre-Markets Look Toward Sunny Climes

Monday, June 23, 2025Pre-market futures are mostly flat to start a new trading week, with only the small-cap Russell 2000 still trading down more than -0.1%. We're already off pre-market lows, as market participants look forward toward the passage of the budget reconciliation bill (aka the 'Big Beautiful Bill') through the Senate by mid-week. Bond yields also remain muted at this hour, with the 10-year at 4.34% and the 2-year 3.89%.Oil prices are up slightly this morning, following a round of U.S. air strikes on Iran over the weekend. Considering the vast implications of such an undertaking, oil markets are taking this news pretty much in stride this morning. That said, we are at five-month highs currently, but WTI and Brent crude remain trading in the mid-$70s per barrel. The June print on S&P flash PMI for Services and Manufacturing is expected after the regular trading day gets underway. Both are expected to tick down half a point or so month over month, yet remain over the key 50-level, which indicates growth versus loss. While Services has been ping-ponging back and forth so far each month in 2025, Manufacturing looks to revert to where we were in the early part of the Existing Home Sales for May will be hitting the tape at 10am ET today. This is also expected to come down a bit month over month, which would represent the third-straight month lower and the first sub-4 million seasonally adjusted, annualized units since October of last year. Higher-than-expected mortgage rates here in mid-2025 continue to control much of the narrative here. We will see a healthy range of new housing data this week, beyond today's Existing Home Sales: New and Pending Home Sales for May will be out Wednesday and Thursday, respectively, and the Case-Shiller Home Price Index for April will give us the most accurate look at nationwide pricing data ahead of the opening bell addition, Consumer Confidence, Retail & Wholesale Inventories, Advanced Trade Balance, Durable Goods Orders and the second revision on Q1 GDP will also find their way into our collective economic outlook. This is all before the all-important Personal Consumption Expenditures (PCE) report for May, which is cited in multiple other economic prints. By the end of this week, we should have a much tighter grasp on how our domestic economy is or comments about this article and/or author? Click here>> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research

The dollar sees a rebound after US strikes Iran, but can it continue?
The dollar sees a rebound after US strikes Iran, but can it continue?

Yahoo

time24 minutes ago

  • Yahoo

The dollar sees a rebound after US strikes Iran, but can it continue?

The dollar rose on Monday as uncertainty over the Israel Iran conflict persisted following US strikes on Iranian nuclear facilities over the weekend. By around 2.45 CEST, the Dollar Index had risen 0.61% in daily trading to 99.31. Over the month, it showed a 0.19% increase, although its year-to-date value was still down almost 9%, failing to win back losses linked to erratic policies from the Trump administration. US President Donald Trump said that the weekend strikes had caused 'monumental damage', although some Iranian officials downplayed the impact. The full extent of the damage could not immediately be determined by the UN's nuclear watchdog. Israel — meanwhile — continued with its strikes on Iran on Monday, while Tehran vowed that it would 'never surrender to bullying and oppression'. Several nations warned Iran against a retaliatory closure of the Strait of Hormuz, a shipping lane responsible for around 20% of global oil and gas flows. 'In this morning's trading session, the dollar staged an expected rebound. The demonstration of US military strength, as well as the fear of higher oil prices, weakened the euro,' said ING economists in a note. Higher oil prices would likely drive up inflation and discourage the US Federal Reserve from cutting rates in the near future. This would spell bad news for US consumers but would simultaneously increase the dollar's attractiveness to investors. 'Looking ahead, one of the key questions is whether US involvement in the conflict could restore the dollar's safe-haven appeal. Here, a crucial factor will be the duration of any potential Strait of Hormuz blockade. The longer such a blockade lasts, the higher the likelihood that the value of safe-haven alternatives like the euro and yen is eroded, and the dollar can enjoy a decent recovery,' said ING economists. Related Is Trump destroying the dollar - and what does it mean for the euro? Energy in Europe is also at stake as Israel-Iran conflict escalates The greenback's value has dropped significantly this year as policies from the Trump administration have spooked investors, damaging the currency's status as a safe-haven asset. Signals worrying investors are not solely linked to trade policy, but also include a high US deficit, the cost-slashing bureau DOGE, sudden cuts to foreign aid, withdrawals from international treaties, and the prospect of financial deregulation. Greg Hirt, chief investment officer with Allianz Global Investors, told Euronews that 'structural issues around a twin deficit and the Trump administration's volatile handling of tariffs should continue to weigh on an overvalued US dollar'. Even so, he noted that the 'short term potential for higher oil prices will likely affect the Chinese and European economies to a greater extent, as they are more dependent on oil imports than the US'. Ryan Sweet, chief US economist at Oxford Economics, reiterated this point, noting that 'the US economy is essentially energy independent but others are not, including Japan as it imports most of its oil from the Middle East'. Sweet told Euronews that dollar gains are positive but still muted as 'currency markets are in a wait and see mode'. There is also significant uncertainty around President Trump's tariff deadline, with a 90-day pause on so-called 'reciprocal' duties set to expire on 9 July.

Pre-Markets Flat to Start a Fresh Trading Week
Pre-Markets Flat to Start a Fresh Trading Week

Yahoo

time24 minutes ago

  • Yahoo

Pre-Markets Flat to Start a Fresh Trading Week

Pre-market futures are mostly flat to start a new trading week, with only the small-cap Russell 2000 still trading down more than -0.1%. We're already off pre-market lows, as market participants look forward toward the passage of the budget reconciliation bill (aka the 'Big Beautiful Bill') through the Senate by mid-week. Bond yields also remain muted at this hour, with the 10-year at 4.34% and the 2-year 3.89%.Oil prices are up slightly this morning, following a round of U.S. air strikes on Iran over the weekend. Considering the vast implications of such an undertaking, oil markets are taking this news pretty much in stride this morning. That said, we are at five-month highs currently, but WTI and Brent crude remain trading in the mid-$70s per barrel. The June print on S&P flash PMI for Services and Manufacturing is expected after the regular trading day gets underway. Both are expected to tick down half a point or so month over month, yet remain over the key 50-level, which indicates growth versus loss. While Services has been ping-ponging back and forth so far each month in 2025, Manufacturing looks to revert to where we were in the early part of the year. Also, Existing Home Sales for May will be hitting the tape at 10am ET today. This is also expected to come down a bit month over month, which would represent the third-straight month lower and the first sub-4 million seasonally adjusted, annualized units since October of last year. Higher-than-expected mortgage rates here in mid-2025 continue to control much of the narrative here. We will see a healthy range of new housing data this week, beyond today's Existing Home Sales: New and Pending Home Sales for May will be out Wednesday and Thursday, respectively, and the Case-Shiller Home Price Index for April will give us the most accurate look at nationwide pricing data ahead of the opening bell tomorrow. In addition, Consumer Confidence, Retail & Wholesale Inventories, Advanced Trade Balance, Durable Goods Orders and the second revision on Q1 GDP will also find their way into our collective economic outlook. This is all before the all-important Personal Consumption Expenditures (PCE) report for May, which is cited in multiple other economic prints. By the end of this week, we should have a much tighter grasp on how our domestic economy is performing. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research ( Zacks Investment Research

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store