SENATE DEMS SABOTAGE FISCAL SANITY: Parliamentarian Blocks Key GOP Spending Cuts!

In a significant procedural setback for Republican lawmakers, Senate Parliamentarian Elizabeth MacDonough ruled on June 20, 2025, that several provisions within President Donald Trump's ambitious "One Big Beautiful Bill Act" violate the Byrd Rule, thereby preventing their inclusion in the budget reconciliation process. ([reuters.com](https://www.reuters.com/legal/government/us-senate-referee-rules-against-cuts-cfpb-financial-regulators-tax-spending-bill-2025-06-20/?utm_source=openai)) The affected provisions aimed to defund the Consumer Financial Protection Bureau (CFPB), reduce compensation for Federal Reserve employees, eliminate the Public Company Accounting Oversight Board, and cut funding for the Office of Financial Research. These measures were intended to streamline government operations and reduce federal spending. However, MacDonough determined that these elements did not comply with the strict budgetary guidelines required for reconciliation, which allows legislation to pass with a simple majority. ([apnews.com](https://apnews.com/article/88321be915179f80e47f355bd4d7db60?utm_source=openai)) Senate Banking Committee Chairman Tim Scott (R-S.C.) expressed his commitment to fiscal responsibility, stating, "I remain committed to advancing legislation that cuts waste and duplication in our federal government and saves taxpayer dollars." He emphasized the importance of reducing unnecessary spending and indicated plans to work with the parliamentarian to address the committee's provisions. ([americanbanker.com](https://www.americanbanker.com/news/parliamentarian-knocks-cfpb-funding-cut-out-of-megabill?utm_source=openai)) The CFPB, established in the aftermath of the 2008 financial crisis, has been a point of contention for many Republicans who view it as an example of government overreach. Efforts to defund the agency were projected to save $6.4 billion, contributing to the GOP's broader strategy of cutting $1 trillion from social programs while extending $4.5 trillion in tax cuts and increasing national security funding. ([apnews.com](https://apnews.com/article/88321be915179f80e47f355bd4d7db60?utm_source=openai)) Democrats, led by Senator Elizabeth Warren (D-Mass.), who was instrumental in creating the CFPB, hailed the parliamentarian's decision as a victory for consumer protection. Warren criticized the GOP's proposals, stating they were "a reckless, dangerous attack on consumers and would lead to more Americans being tricked and trapped by giant financial institutions." ([abcnews.go.com](https://abcnews.go.com/US/wireStory/senate-parliamentarian-deals-blow-gop-plan-gut-consumer-123052981?utm_source=openai)) The ruling poses a significant challenge to the GOP's legislative agenda, as the provisions in question would now require 60 votes to pass in the Senate, a threshold unlikely to be met given the current 53-47 Republican majority. This development underscores the complexities of navigating budget reconciliation rules and the hurdles in implementing substantial policy changes through this process. ([apnews.com](https://apnews.com/article/88321be915179f80e47f355bd4d7db60?utm_source=openai)) As the July 4 deadline approaches for passing the comprehensive budget package, Republican leaders are reassessing their strategy to advance key components of President Trump's agenda, including tax cuts, spending reductions, and enhanced border security. The parliamentarian's ruling necessitates a recalibration of the legislative approach to achieve these objectives within the constraints of Senate procedures. ([apnews.com](https://apnews.com/article/0e1c1cf43e10b55ba8c1f3e20d16b153?utm_source=openai))