The White House on Thursday dug in on its expectation that Congress will pass the massive reconciliation package containing the president’s key agenda items by next week, despite a major setback on Thursday from the Senate parliamentarian.

“We expect that bill to be on the president’s desk for signature by July 4th,” press secretary Karoline Leavitt told reporters at a press briefing.

“I know there was a ruling by the Senate parliamentarian this morning. Look, this is part of the process, this is part of the inner workings of the United States Senate, but the president is adamant about seeing this bill on his desk here at the White House by Independence Day,” Leavitt added.

The Senate’s referee rejected a plan to cap states’ use of health care provider taxes to collect more federal Medicaid funding, a decision that struck a blow to Republicans’ strategy for cutting federal spending in the One Big Beautiful Bill Act.

The House has already passed its version of the reconciliation package. It must still get through the Senate, and any changes must go back to the House for approval before going to Trump’s desk for his signature.

The Senate parliamentarian’s ruling could threaten one of the key provisions to offset federal spending costs. As a result, it could create consternation among fiscal hawks in the GOP who were already concerned the massive piece of legislation did not do enough to cut federal spending.

Republicans could get around the parliamentarian’s rulings by holding a simple-majority vote on the floor to establish a new precedent, expanding the scope of what is eligible under reconciliation.

Senate Majority Leader John Thune (R-S.D.) said he would not overrule the parliamentarian over her decision.

Leavitt said she had not spoken to Trump about whether he thought the parliamentarian should be removed over the decision.