Medicaid Provider Tax Overhaul Faces Senate Hurdle

The Senate parliamentarian's guidance has emerged as a critical obstacle for Republicans striving to pass President Donald Trump's tax cut and spending bill. The decision indicates the Medicaid provider tax overhaul doesn't comply with procedural standards, complicating the GOP's plans.

Ignoring such advice is rare, leaving Senate leaders with few options: revise the provision, remove it, or face a challenging 60-vote threshold during floor votes. The bill already faces united Democratic opposition in a narrowly divided Senate.

Republican leaders banked on the overhaul to cut billions from Medicaid, essential to the tax cuts. However, GOP senators have voiced concerns about potential adverse impacts on rural hospitals, adding to the complexity of securing support before the week's end target.

(With inputs from agencies.)