Republican fiscal conservatives delivered a major setback to former President Donald Trump’s domestic policy ambitions on Friday, halting progress on his legislative proposal in the House Budget Committee.
Trump’s “big, beautiful” bill was rejected in a 16-21 vote, with five Republican members opposing it: Representatives Chip Roy (Texas), Ralph Norman (South Carolina), Josh Brecheen (Oklahoma), Andrew Clyde (Georgia), and Lloyd Smucker (Pennsylvania).
The 1,116-page bill was stopped in its tracks by Republican budget hawks who argued it didn’t go far enough in reducing federal spending. This stance came despite claims from GOP leadership that the proposed cuts surpassed the targets set by fiscal conservatives earlier in the year during budget framework discussions.
For the legislation to move forward to the House floor, it must first clear the Budget Committee before advancing to the Rules Committee. In a Truth Social post earlier Friday, Trump implored fellow Republicans to support the proposal:
“Not only does it cut Taxes for ALL Americans, but it will kick millions of Illegal Aliens off of Medicaid to PROTECT it for those who are the ones in real need,” Trump wrote. “The Country will suffer greatly without this Legislation, with their Taxes going up 65%. It will be blamed on the Democrats, but that doesn’t help our Voters.”
“We don’t need ‘GRANDSTANDERS’ in the Republican Party. STOP TALKING, AND GET IT DONE! It is time to fix the MESS that Biden and the Democrats gave us. Thank you for your attention to this matter!” he added.
House Speaker Mike Johnson had aimed to get the legislation passed by Memorial Day, but divisions within the Republican ranks have slowed momentum. Disagreements remain on issues like the State and Local Tax (SALT) deduction, Medicaid provisions, and clean energy tax incentives, reports National Review.
Unveiled Monday by the House Ways and Means Committee, the GOP tax plan proposes over $4 trillion in tax cuts and a minimum of $1.5 trillion in spending reductions over the next ten years.
The measure includes a permanent extension of the 37 percent top individual income tax rate, a provision from Trump’s first term that is set to expire. The current draft also proposes raising the state and local tax (SALT) deduction cap to $30,000 for individuals and couples, up from the existing $10,000 cap. However, according to Politico, this proposal remains in flux. Lawmakers from high-tax states have called for a much higher cap, suggesting a $124,000 limit for joint filers.
Republicans from high-tax states like New York and California are pushing for more substantial relief, arguing that only a major increase will protect their electoral prospects in competitive districts.
Concerns over Medicaid cuts have also surfaced among some GOP members. They warn that provisions tied to provider taxes and cost-sharing could result in working-class families losing coverage and potentially force rural hospitals to shut down.
The bill is expected to undergo significant changes when it reaches the Senate. The White House is aiming to present the finalized legislation to Trump for signing by July 4, according to National Review.
