The Senate parliamentarian ruled Thursday that several key provisions in Banking Chair Tim Scott’s proposed contribution to the GOP’s “big beautiful bill” violate the upper chamber’s rules for the budget reconciliation process, according to Budget Committee ranking member Jeff Merkley’s office.
Scott’s proposals to zero out funding for the Consumer Financial Protection Bureau, slash some Federal Reserve employees’ pay, cut Treasury’s Office of Financial Research and dissolve the Public Company Accounting Oversight Board are all ineligible to be included in a simple-majority budget reconciliation bill.
The ruling from Senate Parliamentarian Elizabeth MacDonough is a major blow to Scott and Banking Committee Republicans, who will be forced to go back to the drawing board on the core pieces of their proposal for the GOP megabill. The panel is required to find $1 billion in cuts over the next 10 years under a budget resolution adopted by both chambers of Congress — a narrow fraction of the overall bill.
Only measures that are aimed at changing spending or revenues are allowed under the strict rules governing the filibuster-skirting budget reconciliation process. MacDonough is responsible for determining which proposals comply with the body’s rules. Banking Committee staffers from both parties met with the parliamentarian’s office earlier this week to discuss Scott’s plan.
The proposal, which went further than the House-passed version of the megabill, had been facing skepticism even from committee Republicans about whether it would comply with the body’s rules. Banking Republicans will now have to strike or scale back some of the biggest cost-savers in their proposal.
