Senate GOP weighs delay to Medicaid cuts amid reconciliation bill standoff... Senate Republicans are considering postponing controversial Medicaid provider tax cuts as they scramble to win over moderate GOP senators threatening to derail President Donald Trump’s sweeping reconciliation bill. The potential delay comes as Republican leaders race against a self-imposed July 4 deadline to deliver the package to Trump’s desk, while facing internal opposition and complex procedural hurdles.
To secure votes from holdouts, several GOP senators are pressing leadership to delay the tougher crackdown on Medicaid provider taxes — particularly given its projected impact on rural hospitals. The proposal, paired with a stabilization fund for rural providers, could help bring on board senators facing tough re-elections, such as Thom Tillis (R-N.C.) and Susan Collins (R-Maine).
As currently drafted, the stricter provider tax limits would hit Medicaid expansion states in early 2027 — immediately after the 2026 elections. Delaying the timeline would grant political cover to vulnerable Republicans, though Democrats are expected to continue attacking the party over Medicaid cuts.
Meanwhile, Senate Majority Leader John Thune (R-S.D.) is holding out hope for an initial procedural vote as soon as Friday, but some senators now expect a weekend vote-a-rama at the earliest. The outcome is complicated by unfinished “Byrd Bath” reviews, demands from GOP senators for final legislative text, and unresolved House opposition — particularly over SALT deduction caps and spending reductions.
Thune, in close coordination with Trump — whom he calls “the closer” — is counting on the president’s political muscle to push the bill across the finish line. Trump is hosting a White House event today featuring stories highlighting the bill’s benefits, part of a broader effort to win public support and pressure wavering lawmakers. Bottom line: The timing of the floor process remains uncertain, with GOP leaders gambling that Trump’s involvement and a sweetened rural hospital fund will be enough to unite their caucus for a final vote.
Biodiesel makers warn of industry collapse without immediate tax credit extension... U.S. biodiesel producers are warning of a potential industry-wide collapse unless Congress acts quickly to extend the expired $1.00 per gallon biodiesel blenders’ tax credit (BTC), which lapsed at the end of 2024. Trade organizations — including the Sustainable Advanced Biofuel Refiners and the National Association of Truck Stop Owners — say a policy gap between the expiration of BTC and the delayed start of its replacement, the 45Z Clean Fuel Production Tax Credit, threatens to shutter much of the nation’s biofuel production.
With BTC now expired and the 45Z credit not set to take effect until 2026, producers face an uncertain future. The complexity of 45Z, which ties benefits to carbon intensity and applies only to domestically produced fuels, has only deepened the uncertainty — especially as the IRS has yet to release final guidance.
A bipartisan coalition in Congress is now pressing to extend the BTC through at least 2025. Supporters argue that a temporary extension is vital for industry survival, job protection, energy security, and market stability, particularly as global conflicts threaten U.S. energy supplies.
Some say unless Congress acts quickly, much of the U.S. biodiesel sector could disappear — jeopardizing investments in clean energy, emissions reduction goals, and affordable transportation fuel. They say extending BTC would help stabilize the market, protect jobs, and shield consumers from inflationary shocks as the industry transitions to the new 45Z credit in 2026.
U.S./India trade talks stalled over tariff disputes... Trade negotiations between the U.S. and India have reached a major impasse, casting doubt on prospects for a bilateral agreement ahead of President Donald Trump’s July 9 deadline to impose new reciprocal tariffs, Reuters reports. Indian officials say both sides remain divided over import duties on auto components, steel and agricultural products.
India is pressing for a rollback of the proposed 26% U.S. reciprocal tariff and seeking relief from existing U.S. duties on Indian steel and auto parts. However, U.S. negotiators have rejected these requests and are demanding deeper tariff cuts by India on U.S. farm goods — including soybeans and corn — as well as on automobiles and alcoholic beverages and are seeking eased non-tariff barriers.
An Indian delegation is expected to travel to Washington before the deadline, but sources caution that negotiations may shift toward a broader deal rather than a rushed interim pact. Despite previous optimism — including Trump’s suggestion that India was open to a “no tariffs” arrangement for U.S. goods — progress has been minimal. Indian negotiators stress they are “keen, but not desperate” to conclude a deal before July 9.
A breakthrough could still occur if Prime Minister Narendra Modi and Trump intervene directly.
Trump’s tariff demands complicate Canada trade talks... President Trump’s insistence on including tariffs as a core part of any trade agreement is creating challenges for Canadian negotiators, according to Kirsten Hillman, Canada’s ambassador to the U.S. “The president really likes tariffs,” Hillman said, describing them as central to Trump’s economic agenda. Canadian officials are now searching for ways to satisfy the White House while protecting access to their largest export market.
Prime Minister Mark Carney this week appointed Hillman as Canada’s chief negotiator in talks with the U.S., aiming to secure a deal before the agreed July 21 deadline — a date suggested by Carney during a meeting with Trump at the G7 summit in Alberta. Negotiators from both countries met four times last week and have three sessions scheduled this week as they “dig into the substance of our respective concerns and demands,” Hillman noted.
Canada’s immediate focus is persuading the U.S. to lift 50% tariffs on steel and aluminum and to drop levies on autos that have hit Canadian industries. Canada is also pushing for the removal of tariffs the U.S. imposed on certain Canadian goods over fentanyl trafficking concerns. Longer-term disputes — including Canada’s digital-services tax on U.S. tech companies and a controversial dairy quota system — are likely to be addressed in next year’s scheduled renegotiation of the U.S.-Mexico-Canada Agreement (USMCA).
Hillman said Canada’s strategy is to achieve a two-stage resolution: first, to address urgent tariff issues and stabilize bilateral trade, and then to tackle broader disputes during the U.S.-Mexico-Canada Agreement (USMCA) review. She emphasized that Canada will continue to defend the largely tariff-free framework established by USMCA, arguing that open trade supports Trump’s priorities of energy security, access to critical minerals and increased U.S. investment. “We are deeply connected to the U.S. economically, geographically, from a security perspective and from a people-to-people perspective,” Hillman said. “All of those facets help us build a sense of common purpose — even when it might feel like at the outset there isn’t one. I think that that’s probably the best way to get to the best outcome for Canada.”