Trump agenda bill negotiations and Newsom's changing tune on the homeless crisis: Morning Rundown

Speaker Mike Johnson races to finalize a sweeping bill amid stubborn disagreements over Medicaid and tax.

Speaker Mike Johnson races to finalize a sweeping bill amid stubborn disagreements over Medicaid and tax. California Gov. Gavin Newsom suggests how cities can address the homeless crisis. And residents of a Memphis neighborhood are putting up a fight against Elon Musk’s AI company.

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Speaker Mike Johnson anticipates talks will extend into the weekend as the House hashes out aspects of the sweeping bill for President Donald Trump’s agenda, with debates over Medicaid cuts and a state and local tax, or SALT, being among the most prominent issues among lawmakers. But Johnson is hopeful that provisions to address both issues will placate blue-state Republicans and conservatives, two groups who have emerged as the biggest roadblocks in passing the massive bill.

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Johnson suggested that he might be willing to consider provisions for a higher SALT deduction after he met this week with pro-SALT Republicans and hard-right Freedom Caucus members. But “if the SALT cap goes up, then there’s more money you have to go find,” said conservative Rep. Byron Donalds.