Senate Republicans experienced a significant setback in their efforts to pass a tax and spending package when the Senate parliamentarian ruled that a proposal for how states can tax Medicaid providers was impermissible under budget reconciliation rules. This provision was vital for offsetting tax cut costs within the bill. Democrats viewed the ruling as a success, claiming it eliminated $250 billion in health care cuts. A Republican official suggested they would continue working to achieve their financial objectives despite this setback, indicating ongoing debate and disagreement around the proposed legislation.
"With more decisions to come, this guidance results in more than $250 billion in health care cuts removed from the Republicans' big bad bill," said Sen. Ron Wyden.
"This bill is rotten to its core, and I'll keep fighting the cuts in this morally bankrupt bill until the end," Wyden added.
A senior Republican official stated Republicans will "continue our work to find a solution to achieve the desired results/savings" despite the parliamentarian's ruling.
The nonpartisan Senate parliamentarian ruled against a key GOP provision that was crucial for offsetting the costs of the tax cuts in the bill.
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