In a stunning setback for House Republicans, their sweeping tax cuts and spending reduction package failed to advance from the Budget Committee on Friday, derailed by a coalition of conservative holdouts and unified Democrats. The 16-21 vote throws House Speaker Mike Johnson’s legislative agenda into disarray, casting doubt on the fate of President Donald Trump’s “One Big Beautiful Bill Act.”
The bill, a massive 1,116-page piece of legislation, aimed to extend Trump-era tax cuts while implementing new ones, coupled with spending reductions across various federal programs.
However, hard-right lawmakers are demanding deeper cuts, particularly to Medicaid and green energy tax breaks, arguing the current version would exacerbate the nation’s $36 trillion debt.
Rep. Chip Roy (R-Texas), a leading voice of the conservative opposition, declared, “Something needs to change or you’re not going to get my support.” He and other holdouts, including Reps. Ralph Norman (R-S.C.), Lloyd Smucker (R-Pa.), Josh Brecheen (R-Okla.), and Andrew Clyde (R-Ga.), insisted the bill’s spending cuts were insufficient and backloaded, failing to address the immediate fiscal concerns.
“This bill falls profoundly short. It does not do what we say it does with respect to deficits,” Roy stated during the committee meeting.
The conservative bloc is specifically pushing for earlier implementation of work requirements for Medicaid recipients, currently slated for 2029, and steeper cuts to Biden-era green energy subsidies. Clyde echoed Roy’s sentiments, stating, “Substantive improvements are needed.”
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Meanwhile, lawmakers from high-tax states, notably New York, are pressing for an increased State and Local Tax (SALT) deduction, further complicating the bill’s already precarious position.
Speaker Johnson, despite the internal strife, maintains that the bill will ultimately pass, aiming to inject stability into the wavering economy. He had hoped to move the bill to the House floor for a vote next week, but the committee’s failure has derailed that timeline.
The Budget Committee lacks the authority to amend the bill, leaving the Rules Committee as the next potential venue for modifications. The original plan was for the Rules Committee to convene on Monday, preparing the bill for a floor vote later next week.
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As President Trump returns from the Middle East, Republican leaders face a weekend of intense negotiations to salvage the bill and bridge the widening divide within their party. The conservative holdouts have vowed to remain in Washington to push for their demands, signaling a protracted battle ahead.
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