Trump battles GOP holdouts over tax and spending
President Trump struggles to unite Republicans behind his sweeping bill.
- House Republicans are working late to pass Trump’s tax and spending bill.
- The bill extends 2017 tax cuts but faces opposition over deficit and healthcare concerns.
- Trump has set a Friday deadline for the bill to reach his desk.
Donald Trump is facing resistance from his own party as he pushes for the passage of a sweeping tax and spending bill, a legislative package that could define his second term, with the primary sticking point being the potential impact on national finances and healthcare.
The U.S. House of Representatives is burning the midnight oil as Donald Trump and his allies scramble to whip up support within his own Republican Party for his ambitious tax and spending bill.
After a marathon seven-hour session that stretched into Wednesday night, the House cleared a crucial procedural vote after 03:00 EDT (07:00 GMT), setting the stage for a final showdown.
The legislation, which passed the Senate on Tuesday, aims to extend the 2017 tax cuts, which are set to expire, and partially offsets the costs through reductions in Medicaid, the government’s healthcare program for low-income Americans. It also proposes increased spending on border security and defense, two cornerstones of Trump’s agenda.
Trump applies pressure
Trump has been actively involved in trying to sway the undecided, holding multiple meetings at the White House on Wednesday. He also took to social media to ramp up the pressure, declaring that the “House is ready to vote tonight” and that Republicans are “united” to deliver “massive growth.”
However, not everyone is falling in line. Rep. Ralph Norman of South Carolina attended one of the White House meetings but remained unconvinced.
Opposition to the bill stems from concerns about its potential to balloon the national deficit and slash funding for healthcare and other social programs.
Deficit hawks
**How much could Trump’s bill add to the national deficit?** The Congressional Budget Office (CBO) estimates that the Senate-passed version could add $3.3 trillion to the national deficit over the next 10 years, compared to the $2.8 trillion that the original House version would have added. The deficit is the difference between what the government spends and what it takes in.
These figures have ignited the ire of fiscal conservatives in the House Freedom Caucus, who have threatened to derail the bill. Many echo the sentiments of Elon Musk, who has criticized lawmakers for considering a bill that would further increase the national debt.
Rep. Chip Roy of Texas quickly voiced his frustration after the Senate vote, suggesting that Trump’s July 4 deadline was unlikely to be met.
Rep. Andy Harris of Tennessee told Fox News that Musk was right, saying, “He understands finances, he understands debts and deficits, and we have to make further progress.”
Rep. Andy Ogles took a more drastic step on Tuesday, filing an amendment to replace the Senate version with the original House bill, which he dismissed as a “dud.”
Rep. Warren Davison of Ohio posted on X: “Promising someone else will cut spending in the future does not cut spending.”
Medicaid guardians
Reps from poorer districts are worried about the bill harming their constituents, which could hurt them at the polls in 2026.
Concerns about cuts to Medicaid are a significant sticking point. Rep. David Valadao, representing a swing district in California, stated, “I’ve been clear from the start that I will not support a final reconciliation bill that makes harmful cuts to Medicaid, puts critical funding at risk, or threatens the stability of healthcare providers.”
House Minority Leader Hakeem Jeffries posted a picture of himself on Wednesday to Instagram, holding a baseball bat and vowing to “keep the pressure on Trump’s One Big Ugly Bill.”
Other Republicans have indicated a willingness to compromise. Rep. Randy Fine of Florida said he had frustrations with the Senate version but would vote for it in the House because “we can’t let the perfect be the enemy of the good.”
The Senate-passed bill makes steeper cuts to Medicaid and food subsidies than the original House version. A CBO report published on Saturday estimates that changes to Medicaid and the Affordable Care Act in the Senate bill would cause roughly 12 million Americans to lose health insurance by 2034, compared to 11 million under the original House bill.
State tax objectors
The bill also addresses the state and local tax (SALT) deduction. Currently capped at $10,000 (expiring this year), both the House and Senate have approved raising it to $40,000. However, the Senate version would revert the cap to $10,000 after five years, which could create issues for some House Republicans.
