Morning Report — Trump takes budget pressure campaign to Capitol ...Middle East

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In today’s issue:  

The House Rules Committee is in the building. 

Members of the committee are, as of this writing, discussing the House GOP’s massive budget package that promises to deliver on President Trump’s domestic legislative priorities as Speaker Mike Johnson (R-La.) pushes for a floor vote this week, ahead of Memorial Day.

The One Big Beautiful Bill Act must clear the Rules Committee before it can be brought for a floor vote, and members gaveled in for a highly unusual 1 a.m. meeting to work out kinks in the legislation. That meeting is ongoing, and so far, some 537 amendments have been submitted to the reconciliation package. But whether Republicans in the lower chamber have reached the final sprint remains to be seen.

Trump applied pressure to Capitol Hill Republicans on Tuesday, seeking to push them to vote for the legislative package teetering in the GOP conference. The package has run into a series of hurdles in the House as different factions within the conference clash over priorities. Deficit hawks have advocated for changes to avoid adding to the debt, while moderates have sought an increase in the state and local tax (SALT) deduction.

Trump urged moderate Republicans from blue states to give up their fight over the SALT cap, while warning members not to “f‑‑‑ with Medicaid” as some lawmakers eye changes to the program. The House GOP’s narrow majority means Johnson can only afford to lose a handful of votes.

“That was love in that room. There was no shouting,” Trump told reporters after his meeting. “I think it was a meeting of love. And there were a couple of things we talked about specifically where some people felt a little bit one way or the other. Not a big deal.”

Late Tuesday evening, Johnson  and moderate Republicans zeroed in on an agreement for the SALT deduction cap, three sources told The Hill, solving a critical hang-up. The proposal would increase the cap to $40,000 — quadruple the current $10,000 cap — for individuals making $500,000 or less in income, three of the sources said.

While several members of the SALT Caucus are supportive of the plan, according to sources, Johnson will need to sell the proposal to hardline conservatives — including many in the House Freedom Caucus — who have been resistant to a significant hike to the deduction cap.

Exiting a meeting in the Speaker’s office Tuesday night, members of the SALT Caucus said they did not yet have a firm deal, but signaled significant progress.

“We weren’t even in the same universe a couple of days ago. We’re on the same ballfield now,” Rep. Nick LaLota (R-N.Y.) told reporters.

House Freedom Caucus members, meanwhile, expressed a tentative endorsement of the concessions. To appeal to the hard-liners, the Speaker’s team is working to accelerate the phase-out of clean energy tax credits. House Majority Leader Steve Scalise (R-La.) told reporters Tuesday that the bill would “limit dramatically any new projects from starting” using Inflation Reduction Act incentives.

Privately, Politico reports, some of the holdouts are looking for just such an offramp. 

“I think everybody on both sides have been looking for ‘outs,’ and I think they’re getting them today,” said one senior GOP aide.

The Hill: 5 things to know about SALT, the tax break holding up Trump's bill.

Trump’s tax policies would add roughly $3.8 trillion to the national debt, according to an analysis released Tuesday by the Congressional Budget Office (CBO). The tax provisions of the “one big, beautiful bill” would slash federal revenues by roughly 10 percent of the current national debt over the next 10 years, the CBO found.

Even if the bill passes the House, it faces deep hurdles in the Senate.

Johnson pitched Senate Republicans on the House’s megabill plan Tuesday, and not all of them were swayed by the overture. Politico reports multiple GOP senators came out of the meeting saying they planned to continue pushing for further changes to the legislation.

Johnson cautioned his upper chamber colleagues against significantly rewriting the House’s plan — characterizing the $1.5 trillion in spending reductions and the inclusion of a debt hike as parameters that the GOP will have to live with.

“Exactly what he has told the media and his conference is what he told us,” Sen. Ron Johnson (R-Wis.) told reporters after the meeting. “The fact of the matter is, though, that we’re not just solving this problem. What good is having the majority if we don’t use it to return to prepandemic-level spending?”

▪ The Hill: The Senate on Tuesday passed a bill that would eliminate federal taxes on tips, advancing a top Trump campaign promise with the help of Democrats.

▪ Roll Call: Former Rep. Billy Long (R-Mo.) faced withering questions from Senate Finance Committee Democrats over his postcongressional business activities during a hearing on his nomination to be IRS commissioner on Tuesday.

▪ The Hill: A bipartisan Senate bill that would pave the way for more general use of crypto currency, known as stablecoins, has divided Senate Democrats and is testing Sen. Elizabeth Warren's (D-Mass.) influence within her caucus as the top Democrat on the Senate Banking Committee.

Editor’s note: Smart Take with NewsNation’s Blake Burman will return later this week.

3 THINGS TO KNOW TODAY:

▪ The Justice Department is investigating New York City mayoral candidate and former Gov. Andrew Cuomo (D) over testimony he gave during the pandemic. The Trump administration in February dismissed a corruption indictment against Mayor Eric Adams (D), who is seeking reelection. 

▪ Join The Hill’s event TODAY at 8:30 a.m. EDT discussing the impact on older Americans of federal health policies, including proposed budget cuts, safety net programs and key decisions Washington is confronting. Speakers include Alison Barkoff, former director, Administration for Community Living; Sue Koob, CEO, Preventive Cardiovascular Nurses Association; Edwin Walker, former Health and Human Services deputy assistant secretary for aging; and more. Register HERE.

▪ Join The Hill’s June 5 half-day summit, “Invest in America,” at 8 a.m. EDT featuring titans from Washington and Wall Street. Participants share insights about economic developments, tariffs, AI, crypto, taxes and more. RSVP HERE.

LEADING THE DAY 

© Associated Press | Mark Schiefelbein 

GOLDEN DEFENSE: Trump on Tuesday said a futuristic U.S. missile defense shield he calls the “Golden Dome” will be operational by the end of his term to stay ahead of the advanced missile technology developed by U.S. adversaries. With a down payment of $25 billion included in a pending House GOP budget bill, the system is projected to cost $175 billion over decades. U.S. Space Force Gen. Michael Guetlein will oversee the system, Trump said, adding that Canada wants to be part of the shield.

It will be "capable even of intercepting missiles launched from the other side of the world, or launched from space,” the president said from the Oval Office. It’s intended to be a larger, cutting-edge cousin of Israel's Iron Dome, used since 2011 to intercept rockets and missiles aimed at a nation roughly the size of New Jersey. 

The much larger Golden Dome is intended to combat a wider range of threats, including hypersonic weapons able to move faster than the speed of sound and fractional orbital bombardment systems launched from space. 

U.S. SENDS MIGRANTS TO SOUTH SUDAN: The administration deported one immigrant from Myanmar and another from Vietnam to war-torn South Sudan in defiance of a federal court order. The two men had been held in U.S. immigration custody before their lawyers learned they were flown out of the country.

The Hill: Senate Democrats on Tuesday used hearings with Secretary of State Marco Rubio to unleash criticism of the Trump administration’s pivot toward Russia, selective refugee admissions, deportation of student activists and gutting of U.S. soft-power programs.

TRAUMA: Federal workers, during more than 30 interviews, described to The Washington Post struggles with panic attacks, depression and suicidal thoughts amid the Trump administration’s forced resignations, abrupt agency closures and downsizing, database takeovers and firings by mass email. 

“President Trump wants all Americans to thrive under his administration, and he has done more than any president to end the chronic disease crisis in our country,” said White House deputy press secretary Anna Kelly. “It is an honor, not a right, to serve your country in a taxpayer-funded position, and workers unaligned with the American people’s agenda can take part in the growing private sector.”

FEDERAL RESEARCH DOLLARS: Cancer studies carried out by U.S. universities are becoming a casualty of the government’s freeze on research grants. Lab projects are on hold. University acceptances of new and continuing Ph.D. students have been rescinded. Experts believe that at a time when cancer rates are on the rise, the United States is stepping back from investments in health sciences in ways that will slow advances for decades.

CNBC: The Food and Drug Administration (FDA) on Tuesday outlined new regulatory guidance for future COVID-19 booster shots, setting stricter approval standards for healthy adults and children. The FDA wants to see new clinical trials to assess safety and effectiveness among Americans who do not have underlying conditions.  

WHERE AND WHEN

ZOOM IN

© Associated Press | Jose Luis Magana 

Billionaire Elon Musk said Tuesday he expects to pull back on his political donations. “I’m going to do a lot less in the future,” said the Tesla CEO who spent hundreds of millions to promote Republican contests. “If I see a reason to do political spending in the future, I will do it,” he added. “I do not currently see a reason.” 

Interviewed virtually by Bloomberg News during a conference held in Qatar, the generous contributor to Trump’s 2024 presidential bid and other races decried political threats against him and vandalism carried out at Tesla dealerships and against Tesla electric vehicles driven by private owners in many states. “I’ve not harmed anyone,” he said.

Musk’s chaotic leadership of the Trump-created Department of Government Efficiency and its impact on the federal government and civil servants, although praised by the president, grew publicly unpopular during Trump’s initial months in office, according to polls. Musk, who concedes the reputational hit, eased away from Trump’s public orbit to focus on his corporate roles. 

SCUFFLE, KERFUFFLE, CRIME? Democrats say assault charges filed Monday against Rep. LaMonica McIver (D-N.J.) following a May 9 incident with immigration agents amounted to politically motivated intimidation. 

Trump loyalist and interim U.S. Attorney Alina Habba said Monday that McIver’s actions at an immigration facility in Newark warranted two criminal counts of allegedly “assaulting, resisting and impeding certain officers or employees.” 

Habba, a former Trump lawyer, also announced she will not prosecute Newark Mayor Ras Baraka (D) for allegedly trespassing at the same facility. “Why should we apologize about doing our job when ICE and Homeland Security created that environment and that atmosphere that we saw out there that day?” McIver said during an MSNBC interview on Tuesday. “We can show up to any facility, any ICE facility unannounced.”  

The Hill’s Niall Stanage describes the known facts and McIver’s denials. One key takeaway: A GOP administration that prosecutes a first-term blue-state lawmaker during a national debate about immigration wants to be seen dialing up the heat.

▪ The Hill: Trump is leaning into populism while trying to sell his controversial tariffs and trade policy to the country. 

▪ The Hill: Political criticism ebbed about Biden’s cognitive and physical frailties after the 82-year-old, diagnosed with Stage-4 prostate cancer, publicly revealed his illness on Sunday. Some analysts predicted a respite from scrutiny would be brief. Trump issued a statement of public condolence followed by assertions of a “dangerous” health-related cover-up during Biden’s term. The former president’s team revealed Tuesday that the last known prostate cancer screening he had was in 2014.

ELSEWHERE

© Associated Press | Vyacheslav Prokofyev, Sputnik

RUSSIA: Trump stepped back from his demands for an immediate 30-day ceasefire between Russia and Ukraine following calls with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky on Monday, instead suggesting Moscow and Kyiv should start negotiations over what broader peace talks might look like. The president’s rhetoric since the calls indicates a shift that will be welcomed in the Kremlin, which has expressed an openness to peace talks but set maximalist terms that are impossible for Zelensky or his European partners to swallow.

The European Union on Tuesday agreed to impose new sanctions on Russia, notably targeting almost 200 ships from the shadow fleet illicitly transporting oil to skirt Western restrictions put in place over Moscow’s war in Ukraine. The 27-nation bloc targeted 189 ships in all and imposed asset freezes and travel bans on several officials as well as on a number of Russian companies. Ukraine is also pitching the bloc with a sanctions plan it had originally intended to present to the U.S.

Meanwhile, the United Kingdom said its sanctions would target dozens of entities “supporting Russia’s military machine, energy exports and information war, as well as financial institutions helping to fund Putin’s invasion of Ukraine.”

Zelensky on Tuesday accused Russia of “trying to buy time in order to continue its war and occupation” as Putin declined to support the U.S.-proposed, 30-day unconditional ceasefire already agreed to by Ukraine.

CNN: Putin makes first visit to Kursk since Russia claimed to have recaptured the region.

ISRAEL: Israel is facing mounting pressure from its allies — including the U.S. — to wrap up the war in Gaza. Now, Prime Minister Benjamin Netanyahu is faced with a dilemma: end the conflict and risk the collapse of his government, or plow on and sacrifice international support.

Trump has been frustrated by the ongoing war in Gaza and upset by images of Palestinian children, Axios reports. The president told aides to tell Netanyahu he wants the conflict to end. 

“The president is frustrated about what is happening in Gaza,” one White House official said. “He wants the war to end, he wants the hostages to come home, he wants aid to go in and he wants to start rebuilding Gaza.”

U.K. Foreign Secretary David Lammy said Tuesday that Britain was suspending free-trade talks with Israel and summoned Israel’s ambassador, saying that the “11-week block on aid to Gaza has been cruel and indefensible.” Israel said the talks were already stalled.

▪ CNN: The U.K., France, Canada threatened sanctions if Israel continues its new offensive into Gaza.

▪ Reuters: The European Union will review a pact governing its political and economic ties with Israel due to the "catastrophic" situation in Gaza.

▪ Times of Israel: Britain sanctions settlers, groups linked to violence against West Bank Palestinians.

▪ The New York Times: South African President Cyril Ramaphosa will visit the White House today, where he’s expected to challenge Trump on Afrikaner refugees. Ramaphosa will also highlight business opportunities for Elon Musk.

OPINION

■ Behold the new tax plan: More complicated, less fair, totally unaffordable, by Jason Furman, opinion contributor, The New York Times. 

■ Ukraine and Europe are on their own now, by Marc Champion, columnist, Bloomberg Opinion.

THE CLOSER

© Associated Press | AP Photo

And finally … ?️ On this day in 1927, American aviator Charles Lindbergh completed the first nonstop solo flight across the Atlantic Ocean. Lindbergh flew from New York to Paris in the monoplane “Spirit of Saint Louis” — completing the journey in about 33.5 hours.

The feat came with a financial incentive: In 1919, New York hotel owner Raymond Orteig had offered a $25,000 prize for the completion of the first nonstop flight between New York and Paris. Lindbergh’s successful flight launched the “Lindbergh boom” in aviation — aircraft industry stocks rose in value, and interest in flying skyrocketed.

Watch a video of Lindbergh HERE.

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