Morning Report — A ‘big, beautiful’ budget redo - That’s the way the cookie crumbles

In today’s issue:

GOP ekes budget bill out of committee
Critics: GOP Medicaid cuts would be costly
Trump, Putin: Phone diplomacy today?
Biden has cancer; Trump offers well wishes

Budget week two is officially in session.

Republican deficit hawks on Sunday allowed the “big, beautiful bill” to enact President Trump’s agenda to pass through the powerful Budget Committee in an unusual late-night vote. With the vote, the measure cleared a key hurdle, signaling progress for GOP leaders as they try to unite warring factions within the party.

After gaveling in after 10 p.m., the committee voted 17-16 to advance the “One Big Beautiful Bill Act,” which would extend Trump’s tax cuts and boost his border funding priorities while reforming Medicaid and food assistance programs. The weekend vote followed an unsuccessful Budget Committee session Friday, when the bill failed to clear the threshold.

The four Republican holdouts who tanked the vote on Friday — Reps. Ralph Norman (S.C.), Chip Roy (Texas), Andrew Clyde (Ga.), and Josh Brecheen (Okla.) — voted present to allow the bill to go forward. Roy said there was progress on moving up the start date for new Medicaid work requirements and speeding up the phase-out of green energy incentives.

Despite the setbacks, Speaker Mike Johnson (R-La.) said he is counting the vote “as a big win tonight” and wants to bring the bill to the floor this week.

“There’s a lot more work to do, we’ve always acknowledged that towards the end there will be more details to iron out, we have several more to take care of,” Johnson said. “But I’m looking forward to very thoughtful discussions, very productive discussions over the next few days, and I am absolutely convinced we’re going to get this in final form and pass it in accordance with our original deadline, and that was to do it before Memorial Day.”

Trump, back from a trip to the Middle East, is expected to ramp up his engagement with members this week, working the phones and getting more directly involved to try and get the party — especially hard-line conservatives — in line before disagreements among the fractious conference sink the bill.

The Hill’s reporters explain the sticking points in the massive legislation, ranging from the start date for Medicaid work requirements to an increase to the state and local tax, or SALT, deduction cap. Rep. Jennifer McClellan (D-Va.) warned Sunday that tax cuts floated in GOP budget proposals would hurt “millions of Americans” who rely on Medicaid and food stamps.

“This budget is going to make the tax cuts permanent on the backs of millions of Americans losing their health care and millions of Americans losing access to SNAP benefits,” McClellan told NewsNation’s “The Hill Sunday.”

Republican senators, meanwhile, say the House-drafted bill has “problems” and are taking a second look at breaking it up into smaller pieces in hopes of getting the president’s less controversial priorities enacted into law before the fall.

Even if Johnson manages to squeak Trump’s agenda through the House, it faces major obstacles in the upper chamber. Moderate Republicans told The Hill’s Alexander Bolton they oppose proposed cuts to Medicaid, and fiscal conservatives say it doesn’t go nearly far enough in cutting the deficit.

Sen. Ron Johnson (R-Wis.) has been the most vocal in calling for the bill to be broken up into two or several pieces, saying the spending cuts in the House bill are “fake.” He and other Senate Republicans said they think a split package could pass both chambers quickly and get signed by Trump before the July 4 recess.

“That’s why you do multiple steps, you figure out the things you agree on. Leave the hard stuff for last,” he said. “The problem with bundling all of that is what you’re seeing right now.”

SMART TAKE with NewsNation’s BLAKE BURMAN

You probably saw the headlines of Moody’s downgrading America’s credit rating. It came shortly after markets closed on Friday. Moody’s said the downgrade reflects an increase “in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns.” Moody’s blames multiple administrations leading up to this moment and also cites increasing deficits.

Major credit rating agencies have issued similar warnings over the last 15 years, but the timing here also comes as Republicans try to hammer out President Trump’s legislative agenda.

This could give conservative Republicans who preach fiscal restraint the headline they need as the “big, beautiful bill” the GOP is constructing is not near the finish line.

Burman hosts “The Hill” weeknights, 6p/5c on NewsNation.

3 THINGS TO KNOW TODAY

▪ The United Kingdom and the European Union struck a landmark deal today aimed at boosting security cooperation while removing some of the trade barriers introduced by Brexit.

▪ A 25-year-old suspect in a Saturday car bombing in Palm Springs, Calif., died inside the vehicle near a fertility clinic, according to authorities who are continuing to investigate motive and method.

▪ Thrifty inventory: U.S. adult consumers spend about $200 a year on subscription services — everything from streaming entertainment to music to e-commerce fees — that they say they no longer use or forgot about, according to a CNET survey.

LEADING THE DAY

HEALTH COVERAGE: A proposed House GOP requirement for Medicaid work requirements for “able-bodied” adults, which narrowly passed out of committee Sunday night, would create a blizzard of red tape and administrative hurdles for otherwise eligible beneficiaries and end up stripping people of needed health coverage, according to doctors, health experts and patients.

Many House Republicans say that’s OK with them because taxpayers could reel in savings when current beneficiaries could be gainfully employed.

Provisions in the overall budget legislation to offset the costs are back-loaded, including for Medicaid. The Speaker said Sunday that he wants to impose the work requirements “as soon as possible” but acknowledged it may take states longer to change their systems. Those requirements would not kick in until 2029 under the current bill.

“There will be more details to iron out and several more to take care of,” the Speaker told reporters.

A faster start date for the proposed Medicaid restrictions, discussed by House Republicans, would mean the 2028 presidential contest will be shaped by an emotional debate about the party’s pledges not to cut Medicaid, Medicare and Social Security benefits, writes The Hill’s Nathaniel Weixel.

The conservative requirements, which states would not be able to waive, would apply to individuals between ages 19 and 64, with certain exceptions. Nearly 5 million people could lose Medicaid coverage, according to partial estimates released by Republicans.

GOP lawmakers say they’re fine with those consequences because the requirements would target “able-bodied” recipients who receive low-income health coverage as a partnership between federal and state governments.

“I like work requirements,” said Rep. Don Bacon (R-Neb.). “People that are able-bodied, mentally healthy and all that should be working if you’re working age. Able-bodied people still get Medicaid, but you should be looking for work, trying to improve your skills or working. And I think most Americans want that.”

HEALTH: Health and Human Services Secretary Robert F. Kennedy Jr. is feeling the heat from reproductive rights groups who oppose a review he ordered of the abortion drug mifepristone. Trump in December told Time magazine he was both examining the question but could not “imagine” a change.

“Look, I’ve stated it very clearly and I just stated it again very clearly. I think it would be highly unlikely,” he said. “I can’t imagine, but with, you know, we’re looking at everything, but highly unlikely. I guess I could say probably as close to ruling it out as possible, but I don’t want to. I don’t want to do anything now.”

HEALTH: INCREASED ACCESS TO IN VITRO FERTILIZATION: A White House policy report on in vitro fertilization (IVF) is ahead. White House aides signaled their interest in a variety of ideas that would make such fertilizations accessible to a larger population in the U.S. Trump has yet to publicly make any concrete policy proposals. A February executive order calling for the White House fertility report directed aides to make recommendations for “aggressively reducing out-of-pocket and health plan costs for IVF treatment.”

White House spokesperson Kush Desai told The New York Times that expanding access to IVF was a “key priority” for Trump. Some experts in the field question why the country’s leading IVF medical and advocacy group, American Society for Reproductive Medicine, has not been invited by the administration to participate in discussions, even as aides solicit input from for-profit companies and conservative advocates.

WHERE AND WHEN

The House will meet at noon.
The Senate will convene at 3 p.m.
The president and first lady Melania Trump will participate in a Rose Garden bill signing for the “Take it Down Act” at 3 p.m. Trump will lead a law enforcement event in the Oval Office at 4:30 p.m. He will host a White House dinner at 7 p.m. for the Kennedy Center board, whose members he appointed.
The White House daily press briefing is scheduled at 9 a.m.

ZOOM IN

Former President Biden, who announced through his office over the weekend that he has an aggressive form of prostate cancer at age 82, is weighing treatment options with specialists after tests following the onset of symptoms.

It’s a universe of medical and scientific experts he knows well after years of promoting a government-backed “Cancer Moonshot” to “end cancer as we know it.” In his case, his prostate cancer has spread to his bones but “appears to be hormone-sensitive, which allows for effective management,” his office said in a statement. Hormone therapy with prostate cancer is used to block the effects of testosterone, which can stimulate the growth of prostate cancer cells. About 60 percent of prostate cancers are diagnosed in men 65 and older, according to the American Cancer Society.

Trump on Sunday said on Truth Social that he and first lady Melania Trump “are saddened to hear about Joe Biden’s recent medical diagnosis. We extend our warmest and best wishes to Jill and the family, and we wish Joe a fast and successful recovery.”

The Hill: Biden’s cancer diagnosis prompts an outpouring of bipartisan support.

The former president’s overall health and evident vulnerabilities after age 80 became a topic of political discussion before he opted to withdraw from last year’s presidential contest. Democratic hopefuls for the 2028 contest have faced tough questions about what they knew or observed about Biden’s cognitive and physical condition as he initially sought a second term. The controversy flared anew with revelations in a recently released book by CNN’s Jake Tapper and Axios’s Alex Thompson.

State Watch: An ugly Texas primary threatens GOP efforts to defend the party’s majority in the Senate. And in Florida, Miami Republicans are fighting Trump deportation policies that affect their community.

USA Today: Vice President Vance, as a brawler for Trump, avoids some of the mistakes attributed to predecessors Kamala Harris and Mike Pence.

ELSEWHERE

UKRAINE: Trump plans to speak by phone today with Russian President Vladimir Putin about ending the war in Ukraine. He said he will then call Ukrainian President Volodymyr Zelensky and leaders of various NATO countries. The president said that his call with Putin will be about stopping the “bloodbath” in Ukraine that started with Russia’s 2022 invasion.

“Hopefully it will be a productive day, a ceasefire will take place, and this very violent war, a war that should have never happened, will end,” Trump wrote Saturday on Truth Social.

The announcement comes after representatives from Ukraine and Russia held face-to-face talks in Turkey on Friday. It was the first time the two countries held direct talks at any level in three years. Meanwhile, Vance and Secretary of State Marco Rubio met with Zelensky in Rome on Sunday. The meeting came as the world leaders attended the inaugural Mass of Pope Leo XIV. Zelensky described the session as a “good meeting.”

▪ BBC: Russia launched the war’s largest drone attack ahead of the Putin-Trump call, Ukraine said.

▪ The Wall Street Journal: Ukraine is making more weapons than ever — but still can’t fight Russia alone.

GAZA: Israel launched an extensive ground operation in Gaza over the weekend in addition to an intense air campaign. Health officials in the territory say more than 100 people were killed overnight and the strikes shuttered the last functioning hospital in the enclave’s north. Defense Minister Israel Katz said Operation Gideon’s Chariots was being led with “great force.” Prime Minister Benjamin Netanyahu had vowed to escalate pressure with the aim of destroying the militant group that has ruled Gaza for nearly two decades.

More than 53,000 Gazans have been killed so far in the war, according to health officials in the enclave, whose death tolls do not distinguish between civilians and combatants.

Israel said it launched the offensive to pressure Hamas to release remaining hostages, while Netanyahu told a negotiating team to remain in Qatar for indirect talks with the militant group. White House envoy Steve Witkoff has given Israel and Hamas an updated proposal for a Gaza hostage and ceasefire deal and is pressing the parties to accept it.

“The new offer tries to give Hamas confidence that it’s worth moving forward with a partial deal now, because it could lead to the end of the war later on,” a source told Axios.

▪ The New York Times: On Iran, Gaza, Syria and Yemen, Trump is moving ahead without Israel, reshaping decades of foreign policy.

▪ Axios: The Israeli Cabinet approved resuming immediate humanitarian aid to Gaza.

OPINION

■ Netanyahu is not America’s ally — and Trump finally knows it, by John Mac Ghlionn, opinion contributor, The Hill.

■ Trump is destroying a core American value. The world will notice, by Michael Posner, guest essayist, The New York Times.

THE CLOSER

And finally … What do GPS, quantum dots, bladeless LASIK surgery and the first American Sign Language dictionary have in common? They’re among the life-altering scientific advances that were made possible by federal funding.

Annually, the government spends roughly $200 billion on research and development, even though payoffs might be years away. But under Trump’s proposed 2026 budget, that figure would drop sharply.

The New York Times has rounded up nine scientific breakthroughs that relied on government investment — sometimes over the course of decades.

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