Trump’s ‘One Big Beautiful Bill’ Just Collapsed as Parliamentarian Blocks It and GOP Civil War Erupts

On Thursday, Senate Parliamentarian Elizabeth MacDonough delivered a significant blow to Republican efforts to advance the legislation through budget reconciliation—a process that allows certain fiscal measures to bypass a Senate filibuster and pass with a simple majority.

MacDonough ruled that several key provisions in the bill violate the Byrd Rule, a Senate guideline that restricts what may be included in reconciliation legislation.

Among the provisions struck down were proposals to sharply reduce funding for the Consumer Financial Protection Bureau (CFPB), eliminate the Public Company Accounting Oversight Board, slash pay for Federal Reserve employees, and significantly reduce budgets for financial regulatory agencies.

One of the most controversial components would have effectively shut down the CFPB by capping its budget at zero, thereby cutting $6.4 billion in funding.

Democrats quickly hailed the ruling as a victory for rule of law and legislative accountability.

“The Senate Parliamentarian advised that certain provisions in the Republicans’ ‘One Big, Beautiful Betrayal’ will be subject to the Byrd Rule – ultimately meaning they must be removed to maintain compliance with reconciliation rules,” said Senator Jeff Merkley (D-Ore.), the top Democrat on the Senate Budget Committee. “As much as Senate Republicans would prefer to throw out the rule book and advance their ‘families lose and billionaires win’ agenda, there are rules that must be followed — and Democrats are making sure those rules are enforced.”

However, the parliamentarian’s decision is only the latest challenge facing the bill. Perhaps more threatening is the growing rebellion within Republican ranks.

A trio of hardline conservative senators — Ron Johnson (R-Wis.), Mike Lee (R-Utah), and Rick Scott (R-Fla.) — are threatening to vote against the measure unless it is significantly revised to include deeper spending cuts and policy rollbacks.

“There’s no way I vote for this thing next week,” said Senator Johnson. “I don’t want to go the Nancy Pelosi route of ‘you’ve got to pass the bill to know what’s in it.’”

The dissenting senators are demanding broader cuts to Medicaid, a more rapid elimination of green energy tax incentives enacted under the Inflation Reduction Act, and tighter restrictions on eligibility for federal tax benefits.

Senator Scott is specifically targeting the federal match rate for Medicaid expansion under the Affordable Care Act, calling the 90% match “a waste of taxpayer money” and arguing that the program has drifted from its original intent.

“The focus should be on how to care for children and the chronically ill — not able-bodied adults who aren’t working,” Scott stated, citing federal deficit concerns.

Meanwhile, Senator Lee is leading the charge to roll back renewable energy subsidies and to prevent undocumented immigrants from receiving any form of federal tax benefit.

“Green New Deal subsidies that don’t terminate by 2028 will effectively become permanent,” Lee warned on social media platform X. “If you don’t want them to be permanent, tell your senators!”

The trio has declared that they will vote as a bloc — and with the Senate closely divided, the defection of even three Republican senators could doom the legislation.

“Mike is handling the IRA provisions, Rick is focused on Medicaid. You need to satisfy all three of us,” Johnson said. “All of us have to be yes votes, or none of us are.”

At the same time, moderate and centrist Republicans are sounding the alarm about the potential consequences of excessive cuts to healthcare and environmental programs. Senators Lisa Murkowski (R-Alaska), Susan Collins (R-Maine), and Josh Hawley (R-Mo.) have expressed concern over the impact on their constituents, particularly in rural areas.

Collins is reportedly advocating for a “provider-relief fund” to help mitigate the effects of budget cuts on hospitals, nursing homes, and community health centers.

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Despite the mounting opposition, fiscal conservatives insist that the nation’s growing deficit must be addressed urgently — even if it means targeting politically sensitive programs.

“The deficit will eat us alive if we don’t get it under control. If not us, who? If not now, when?” Lee posted.

Senator Johnson also criticized what he views as internal contradictions in the legislation, particularly in relation to President Trump’s campaign promise to balance the federal budget.

“The bill before us doesn’t fulfill that promise,” Johnson said. “And we need to be honest about that.”

With opposition coming from both sides of the aisle and key procedural roadblocks in place, the future of Trump’s legislative package remains highly uncertain.