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A Senate rulekeeper determination that several major provisions focused on cutting Medicaid spending violate the chamber’s rules deals a heavy blow to Senate Republicans’ tax and spending bill.

Senators have been scrambling to finalize their tax bill—a major priority for President Donald Trump—this week to meet a self-imposed July 4 passage deadline. The chamber’s independent rulekeeper’s decision, announced early Thursday in a release from Senate Budget Committee ranking member Jeff Merkley (D-Ore.), could delay lawmakers’ attempts to pass the legislation (H.R. 1) under reconciliation without needing Democratic support.

The rulings from Senate Parliamentarian Elizabeth MacDonough could result in more than $250 billion in health care cuts being removed from the bill, Sen. Ron Wyden (D-Ore.), ranking member on the Senate Finance Committee, said in a statement.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Washington Correspondent Tyler Kendall.
• Bipartisan Policy Center Senior Vice President Bill Hoagland.
• Republican Congressman Troy Downing of Montana.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.
• Principal at WestExec Advisors and former Cyber Executive for the Intelligence Community Laura Galante.

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