In Washington, a tense and challenging scene unfolded among House Republicans as they worked tirelessly to advance President Donald Trump’s tax and spending cuts package. The GOP leaders put in nearly continuous effort to sway skeptics in their ranks, aiming to deliver the bill to Trump by the Fourth of July. A procedural vote initiated on Wednesday night stretched into Thursday morning due to dissent among a few Republicans. With a slender majority, the bill’s progress was precarious. House Speaker Mike Johnson rallied lawmakers back to Washington, capitalizing on the momentum from the bill’s earlier Senate passage, promising to forge ahead.
“Our approach is to push forward and complete it,” Johnson stated, emerging from late-night meetings. He anticipated votes to proceed on Thursday morning, declaring, “We will meet our July 4th deadline.” However, as voting stalled, Trump expressed frustration in a midnight post, questioning the Republicans’ delay and warning of potential political repercussions.
The quick decision to push the bill—a massive, complex document—was risky but aligned with Trump’s demand for a holiday conclusion. Republicans consistently faced challenges with the bill, often succeeding by narrow margins. With their slim majority of 220-212, the opportunity for error was limited. Some Republicans hesitated to approve the Senate version so swiftly. Moderates raised concerns over Medicaid cuts in the Senate bill, while conservatives argued it deviated from their fiscal goals.
Johnson and his team were tasked with persuading their colleagues that negotiations had reached an endpoint. Trump’s influence was crucial in closing the deal, and lawmakers met with him at the White House to discuss their apprehensions. “The president’s message was, ‘We’re on a roll,'” said Rep. Ralph Norman from South Carolina, expressing Trump’s eagerness to see the bill passed. The strategy relied on the Republican majority in Congress to break through Democratic opposition. No Democrats backed the bill in the Senate, and none were anticipated to do so in the House.
House Democratic Leader Hakeem Jeffries, alongside other Democrats, staunchly opposed the bill. A resolution outlining the debate terms for Trump’s bill barely made it through the House Rules Committee, signaling early Republican resistance. As it hit the full House, progress halted with GOP leaders negotiating behind closed doors with dissenters as lawmakers returned to Washington. By nightfall, with dinners arriving at the Capitol, the path forward remained uncertain.
The bill proposes continuing and enshrining various tax breaks initiated during Trump’s first term and adding new ones promised during the 2024 campaign. Highlights include deductions for workers on tips and overtime, and a $6,000 deduction for older adults earning less than $75,000 annually, culminating in approximately $4.5 trillion in tax cuts over a decade. It also allocates around $350 billion for defense and immigration measures while reducing expenditures on Medicaid and food assistance. The Congressional Budget Office estimates the bill will increase federal debt by approximately $3.3 trillion over the next decade.
The House had narrowly passed its version in May despite concerns over spending cuts and cost. Now, it faced pressure to finalize a version intensifying those worries, with the Senate bill’s debt impact notably higher. “Let’s go Republicans and everyone else,” Trump urged in a late-night message. Johnson was determined to meet Trump’s deadline, betting that cautious Republicans would avoid opposing the President due to potential political fallout. An example is Sen. Thom Tillis from North Carolina, who reconsidered his stance following Trump’s criticism and ultimately decided not to seek reelection.
Some Republicans opposing the bill, like Rep. Thomas Massie from Kentucky, found themselves targeted by Trump’s political efforts. Meanwhile, Democrats, led by Jeffries, sought to sway Republicans to join their opposition, reminiscent of Sen. John McCain’s pivotal vote on the GOP’s past healthcare efforts. Jeffries criticized the bill’s impact on vulnerable programs, emphasizing severe Medicaid and food stamp cuts, which Republicans argue aim to optimize welfare programs for populations they were initially designed for.
The bill enforces new work requirements for Medicaid recipients and expands existing requirements in the SNAP program, asking states to cover more food benefits costs. However, the core driver remains the tax cuts, with many expiring at year-end if unaddressed by Congress. The Tax Policy Center projected the bill would yield a modest $150 tax break for the lowest income Americans, a $1,750 cut for middle earners, and a significant $10,950 reduction for top earners next year compared to potential outcomes if the 2017 tax cuts expired.