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The bipartisan Setting Consumer Standards for Lithium-Ion Batteries Act will keep uncertified batteries off the market and out of homes — reducing the fire risk and preserving consumer access. It passed the House by an overwhelming majority. Now it’s the Senate’s turn to make a smart decision to protect Americans.
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THE TOP
Budget clears the reconciliation bill. GOP has a rough week ahead

Happy Monday morning.
The House Budget Committee approved the Republicans’ reconciliation bill late Sunday night, with a quartet of conservative hardliners voting “present” rather than derailing the legislation for a second time.
But Speaker Mike Johnson and top House Republicans still have serious problems and a bruising negotiation ahead of them over the next few days. Both conservatives and moderate swing-seat Republicans are eyeing Johnson warily, afraid he’ll cave to the other faction on key issues including Medicaid spending cuts, taxes and clean-energy credits.
The stakes are huge, both politically and fiscally. Democrats are railing against the GOP package asserting that more than 13 million Americans will lose health insurance if the Medicaid changes are enacted. Republicans peg it far lower – at more than 8 million.
President Donald Trump is also pushing for GOP lawmakers to act on extending his signature 2017 tax cuts, which expire at year end. And credit rating agency Moody downgraded the U.S. rating late last week, putting more pressure on Republican congressional leaders to act.
After the reconciliation bill failed Friday in the Budget panel, Johnson and House Budget Committee Chair Jodey Arrington (R-Texas) brought the panel back for a 10 p.m. session Sunday night. Following a roughly 25-minute delay as Johnson cut a deal in the panel’s back room, the committee voted 17-16 to allow the legislation to move forward.
In a warning sign for Johnson, Reps. Chip Roy (R-Texas), Josh Brecheen (R-Okla.), Ralph Norman (R-S.C.) and Andrew Clyde (R-Ga.) all voted present. They did so to allow the bill to move forward, while still signaling their reservations with the underlying legislation.
The House Freedom Caucus said in a statement late Sunday that the legislation still “does not yet meet the moment.”
“There’s a lot more work to do this week,” Roy told reporters. “We made progress this weekend … but they didn’t get nearly far enough.”
During negotiations over the weekend, Johnson – mostly joining by phone – discussed accelerating the implementation of expanded Medicaid work requirements to Dec. 31, 2026. These were originally set for 2029. Moderates don’t like this new timetable, and that will spark a massive intraparty battle.
Johnson also proposed a quicker phase-out of clean energy tax credits that were put into law as part of the 2022 Inflation Reduction Act. Republican leaders tentatively agreed to cut off all credits by 2028.
Conservatives are still insisting on changes to FMAP, the formula by which the federal government calculates Medicaid payments to states. This has been a hard red line that moderates oppose.
In fact, moderates believed they’d stopped this. But over the weekend, the idea cropped back up, sources involved in the negotiations say.
Roy posted on X about the issue Sunday evening, saying that FMAP “provides seven times more federal dollars for each dollar of state spending for the able-bodied relative to the vulnerable.”
Then there’s SALT. Johnson still has a crop of blue-state Republicans who expect the speaker to make a new offer on raising the state-and-local tax deduction. The House Ways and Means Committee’s bill set the cap at $30,000, a level the moderates rejected. As of very late Sunday night, the moderates hadn’t heard anything new from Johnson.
There’s a belief within the White House and House Republican leadership that moderates may be willing to swallow more drastic changes to Medicaid if Johnson makes a good SALT offer.
Yet there are plenty of moderates who don’t care much about SALT but are unwilling to stomach additional Medicaid changes. Put Reps. Rob Bresnahan (R-Pa.), Juan Ciscomani (R-Ariz.), Don Bacon (R-Neb.) and Brian Fitzpatrick (R-Pa.) in that category.
Johnson is expected to meet with the moderates and hardline conservatives as soon as today. Trump and top administration officials are likely to mount a vigorous whip effort this week too.
Let’s be clear here: A deal isn’t very close. The changes conservatives are seeking are drastic. Some of these tweaks are clearly unacceptable to moderates and the middle of the conference.
The House Rules Committee will hold its hearing on the package Wednesday morning at 1 a.m. Yes, that’s the correct time. Any changes that Johnson negotiates will come in the form of manager’s amendment that Rules will have to make in order. Roy and Norman are on Rules, also. So they have another chance to slow the bill.
The House Republican leadership is warning us that they won’t send members home for the Memorial Day recess until the House passes the reconciliation bill.
As Johnson drags the bill even further to the right, we’ll note that the Senate isn’t going to like much of this at all. Senate Majority Leader John Thune’s chamber is certain to try to temper the House’s actions on Medicaid, the IRA and perhaps even SALT.
Remember: Republican leaders have said they expect to put this bill on Trump’s desk by July 4. That’s 47 days away.
Crypto news: Sen. Mark Warner (D-Va.) will support the latest version of the GENIUS Act and is “encouraging his colleagues to do the same,” according to spokesperson Rachel Cohen. We broke the news on our text platform last night.
As a senior centrist and dealmaker, Warner’s support will be a critical bellwether for many pro-crypto Senate Democrats on stablecoin reform. The Senate will vote as early as tonight to advance the GENIUS Act.
– Jake Sherman, John Bresnahan, Laura Weiss and Brendan Pedersen
This Thursday: Join us on May 22 at 9 a.m. ET for a conversation with SBA Administrator Kelly Loeffler, moderated by Jake Sherman. We’ll also hear from Walmart’s Andrea Albright and small business owner Jeff Picken in a fireside chat on sourcing and supplier partnerships. Secure your spot today.
PRESENTED BY ELECTRONIC PAYMENTS COALITION
Don’t Buy Big Grocers’ Lie!
Grocery stores blame credit cards for high prices, but interchange rates have remained steady for nearly a decade. What has gone up? Americans’ grocery bills. The FTC found big grocers hiked prices during the pandemic to boost their bottom lines. Now they’re pushing new credit card mandates to try to take even more profits—at YOUR expense.
SENATE CAMPAIGNS
Underwood stays mum on Illinois Senate plans
Rep. Lauren Underwood (D-Ill.) could blow up an already crowded Illinois Senate primary if she enters the fray.
Will Underwood join the scramble to succeed retiring Sen. Dick Durbin (D-Ill.)? Nobody knows yet, she’s giving no hints.
“We are in a position of strength,” Underwood said when we asked. “And we are not late.”
Underwood insists she’s in no rush to enter the open primary. Three high-profile Democrats are already in the contest and quickly racking up endorsements and fundraising.
We’re told Underwood could make a decision on whether or not to run as soon as this week.
The race so far: Illinois Lt. Gov. Juliana Stratton, Rep. Raja Krishnamoorthi (D-Ill.) and Rep. Robin Kelly (D-Ill.) all announced their Senate campaigns in the past three weeks.
Stratton quickly secured influential backing from Gov. JB Pritzker and Democratic Sen. Tammy Duckworth (Ill.). Krishnamoorthi is running digital ads and has a formidable $19 million war chest. Meanwhile, the Congressional Black Caucus chair and 17 other CBC members have lined up behind Kelly.
In interviews with Democratic operatives and members, no one was sure if Underwood would get in. Several members of the CBC said they didn’t know whether Underwood would enter.
“Nobody wants that,” Rep. Emanuel Cleaver (D-Mo.), who is backing Kelly, said of the prospect of having two CBC members in the race.
“I have no idea, to be honest with you,” Kelly said when asked if she thought Underwood would enter.
Despite the mystery, two primary polls (one from pro-Underwood group and another from a pro-Stratton group) show Underwood in first-or second-place and with the highest name ID of any candidate.
What’s weighing on Underwood’s mind? First off, there’s the prospect of the state’s billionaire Democratic governor dropping a prohibitive amount of money in the primary to back Stratton. This isn’t out of the question, especially since Stratton has hinted as much.
“It’s a consideration for everyone in the race,” Rep. Chuy Garcia (D-Ill.) said of Pritzker’s support for Stratton.
And at 38, Underwood is already a member of House Democratic leadership, serving as the co-chair of the Democratic Policy and Communications Committee. She also serves on the Appropriations Committee, a coveted post.
Underwood would have to give up a relatively safe House district for a bruising Senate primary.
View from the Senate: Durbin isn’t getting involved yet, telling us he doesn’t plan on endorsing but isn’t ruling it out completely.
Durbin said he wasn’t surprised Stratton had locked up significant endorsements, calling her “a qualified candidate.” “And there will be others as well,” Durbin added.
Duckworth hailed Stratton as a “go-getter” who she’s gotten to know over the past couple years.
The ultimate beneficiary of an Underwood run could be Krishnamoorthi. Three Black women in the race could open up a potential path for him.
“No comment,” Kelly said when asked if the race would be easier for her if Underwood stayed out.
– Max Cohen and Ally Mutnick

Weekday mornings, The Daily Punch brings you inside Capitol Hill, the White House, and Washington.
Listen NowJOB MOVES
Top Democratic staffer to run DMFI
News: Longtime senior House Democratic staffer Brian Romick is leaving the Hill after nearly three decades to run a top pro-Israel group.
Romick will take the helm of Democratic Majority for Israel, replacing Mark Mellman. Mellman, the Democratic pollster who founded the organization in 2019, stepped down in April. Romick will officially take over at DMFI after Memorial Day.
Former Rep. Kathy Manning (D-N.C.) is also joining DMFI as chair of the board of directors.
At a time when support for Israel has cratered among Democrats due to the war in Gaza, Romick and Manning told us their top priority is educating lawmakers and voters on why the longtime U.S. ally deserves their backing.
“Democrats have somewhat lost the plot on Israel. And we need to help communicate to Democrats why Israel exists and why security for Israel is important,” Romick told us.
If you’ve moved in House leadership circles or covered Democrats over the last 20 years, you know Romick, leadership chief of staff to former House Majority Leader Steny Hoyer (D-Md.).
Romick started as a campaign volunteer for Hoyer in 1996 and has been a constant presence at the Maryland Democrat’s side.
Romick brings to DMFI a long institutional memory of Capitol Hill and encyclopedic knowledge of the Democratic Caucus’ various factions. He was closely involved with Jewish issues during his time on the Hill.
“He’s smart, he’s strategic, he understands the Hill and he worked for Steny Hoyer, who has been one of the most extraordinary champions of the US-Israel relationship,” Manning told us.
Manning served in the House from 2021 to 2025. The North Carolina Democrat, who was a leading voice on Jewish issues during her time on the Hill, opted not to run for reelection after redistricting shifted her seat heavily red.
Manning said she wants to prioritize flipping the House for Democrats and supporting pro-Israel candidates in open primaries.
– Heather Caygle and Max Cohen
PRESENTED BY ELECTRONIC PAYMENTS COALITION

Mega-grocers hiked prices during the pandemic and now want to profit even more with credit card mandates.
Oppose the Durbin-Marshall Credit Card Mandates.
📆
What we’re watching
Monday: The House Rules Committee will meet at 4 p.m. to consider several Congressional Review Act resolutions.
Tuesday: DHS Secretary Kristi Noem will be in front of the Senate Homeland Security and Governmental Affairs Committee.
Secretary of State Marco Rubio will testify before the Senate Foreign Relations Committee and the Senate Appropriations Committee.
HHS Secretary Robert F. Kennedy Jr. will be in front of the Senate Appropriations Committee.
Interior Secretary Doug Burgum will appear before the House Appropriations Committee. SEC Chair Paul Atkins will also be in front of the House Appropriations Committee. EPA Administrator Lee Zeldin will be at the House Energy and Commerce Committee.
Wednesday: FCC Chair Brendan Carr will testify in front of the House Appropriations Committee. Education Secretary Linda McMahon will also testify in front of the House Appropriations Committee. Rubio will also appear before House Appropriations.
Rubio will testify in front of the House Foreign Affairs Committee.
Zeldin will testify in front of the Senate Environment and Public Works Committee. SBA Administrator Kelly Loeffler will testify in front of Senate Appropriations, as will Energy Secretary Chris Wright.
Thursday: Labor Secretary Lori Chavez-DeRemer will testify in front of Senate Appropriations.
– Jake Sherman
…AND THERE’S MORE
Bold PAC’s comeback plan. Plus a W&M dinner
News: The campaign arm of the Congressional Hispanic Caucus is launching a new digital campaign called “BOLD Truth” promising a “no bullshit” view of Congress.
CHC BOLD PAC Chair Linda Sánchez (D-Calif.) stars in the first two YouTube videos of the series which take aim at President Donald Trump’s policies in direct-to-camera style.
The initiative will focus on cost of living issues that BOLD PAC says matter most to working class voters. Latino voters have shifted dramatically toward Republicans in recent cycles. Meanwhile, Democrats are searching for ways to cut through the noise and persuade voters the party is fighting for them.
Sanchez slams Trump’s tariffs in one video, claiming the policy is a “tax on goods that consumers buy every day.”
In another video, Sanchez accuses Republicans of “tanking our economy” and trying to blame it on Democrats.
Money game: House Ways and Means Committee Democrats are holding their annual DCCC fundraiser tonight. The dinner — which all the Ways and Means Democrats attend — has hauled in more than $2 million for House Democrats’ campaign arm.
— Max Cohen and Laura Weiss
MOMENTS
ALL TIMES EASTERN
9 a.m.
White House Press Secretary Karoline Leavitt will hold a press briefing.
Noon
The House will meet for morning hour debate.
2 p.m.
The House will meet for legislative business.
3 p.m.
President Donald Trump and First Lady Melania Trump will participate in a bill signing in the Rose Garden.
4:30 p.m.
Trump will participate in a law enforcement event in the Oval Office.
7 p.m.
Trump will participate in a Kennedy Center Board dinner in the White House State Dining Room.
CLIPS
NYT
“Markets Head Lower in Wake of Concerns About U.S. Debt”
– River Akira Davis in Tokyo
WaPo
“Vance and Rubio meet with pope in push to reset relations with Vatican”
– John Hudson, Anthony Faiola and Michelle Boorstein in Vatican City
WSJ
“The Stark Math on the GOP Tax Plan: It Doesn’t Cut the Deficit”
– Rich Rubin
PRESENTED BY ELECTRONIC PAYMENTS COALITION
Don’t Buy Big Grocers’ Lie!
Grocery stores want you to believe credit card processing costs are driving up your grocery bills, but that’s just simply not true. Credit card interchange rates have remained steady for nearly a decade. What has continuously skyrocketed? Americans’ grocery bills.
According to the FTC, major grocery chains used the pandemic to raise prices on customers and pad their margins. Now, they’re lobbying Congress to pass the Durbin-Marshall credit card mandates—so they can profit even more, while consumers and small businesses pay the price.
Don’t let big corporations rewrite the rules to benefit themselves.
Congress: Oppose the Durbin-Marshall Credit Card Mandates.
Editorial photos provided by Getty Images. Political ads courtesy of AdImpact.

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Presented by UL Standards & Engagement
E-bike fires are happening across the country, costing lives and forcing families out of their homes. The Senate can help stop these fires and protect Americans. The bipartisan Setting Consumer Standards for Lithium-Ion Batteries Act will keep uncertified batteries off the market, reducing the risk.