Senate Republicans face setback as parliamentarian removes controversial Medicaid changes from President Donald Trump's bill, including provider tax rate crackdown that divided GOP lawmakers.

Senate Parliamentarian Elizabeth MacDonough ruled that a provision in the One Big Beautiful Bill blocking illegal immigrants from receiving Medicaid benefits had to be removed. Senate Republicans are moving the legislation through the upper chamber using the budget reconciliation process,

The legislation keeps some House provisions, like new Medicaid rules, while making significant changes in other areas, including the state and local tax deduction.