In a dramatic turn of events, House Republicans failed on Friday to move forward with a sweeping tax and spending bill championed by US President Donald Trump, after a small group of conservative lawmakers joined Democrats in voting it down in the Budget Committee.
The panel rejected the 1,116-page “One Big Beautiful Bill Act” in a 21-16 vote—a stunning rebuke that now threatens House Speaker Mike Johnson’s plans to bring the measure to a floor vote next week.
While Democrats unanimously opposed the bill, five Republicans broke ranks, demanding more aggressive spending cuts to Medicaid and green energy subsidies. They warned that the bill, which includes major tax breaks, would further inflate the national debt, now at $36 trillion.
“Something needs to change or you’re not going to get my support,” said Rep. Chip Roy, R-Texas, one of the conservative holdouts.
Conservatives demand deeper cuts, immediate work mandates
The vote exposed rifts within the GOP. Members of the House Freedom Caucus are pressing for steeper reductions to government aid programs and want new work requirements for Medicaid recipients to kick in immediately, rather than in 2029 as proposed.
Rep. Roy criticized the bill’s structure, saying it delivers tax cuts upfront but postpones savings: “We are writing checks we cannot cash, and our children are going to pay the price.”
Rep. Ralph Norman, R-S.C., echoed the sentiment: “I’m a hard no until we get this ironed out.”
The opposition bloc initially included Roy, Norman, Reps. Josh Brecheen of Oklahoma and Andrew Clyde of Georgia. Later, Rep. Lloyd Smucker of Pennsylvania also flipped his vote to no.
New York Republicans push for larger tax breaks
Meanwhile, Republicans from high-tax states like New York are pushing in the opposite direction. They’re demanding an even more generous state and local tax (SALT) deduction than what’s currently in the bill—potentially sending its cost soaring.
As drafted, the legislation would triple the SALT deduction cap from $10,000 to $30,000 for joint filers earning up to $400,000. But Rep. Nick LaLota of New York and others want to raise that ceiling to $62,000 for single filers and $124,000 for couples.
“This is always what happens when you have a big bill like this,” said House Majority Leader Steve Scalise, R-La. “There’s always final details to work out all the way up until the last minute.”
Bill at heart of Trump’s 2024 campaign vision
The defeated bill is central to Trump’s economic platform. It aims to extend his 2017 tax cuts and adds new provisions he promised during his 2024 campaign—such as zero taxes on tips, overtime, and some auto loans.
It also expands the standard deduction to $32,000 for joint filers and boosts the child tax credit to $2,500 temporarily. Simultaneously, it allocates $350 billion for Trump’s immigration enforcement agenda and defense spending.
To fund the plan, the bill proposes scrapping key provisions of President Biden’s Inflation Reduction Act—especially clean energy tax credits—and envisions over $1 trillion in cuts to Medicaid and food assistance programs over ten years.
The Congressional Budget Office estimates the package could leave 7.6 million more people without health coverage and reduce monthly food aid to about 3 million people.
Democrats slammed the proposal as cruel and fiscally reckless. Rep. Brendan Boyle, the top Democrat on the committee, called it “unconscionable.”
Rep. Pramila Jayapal, D-Wash., ridiculed the name of the bill: “One big, beautiful betrayal.” Rep. Morgan McGarvey, D-Ky., said, “To pay for it, kids in Kentucky will go hungry, nursing homes and hospitals will close, and millions of Americans will be kicked off their health insurance.”
(With inputs from AP)
The panel rejected the 1,116-page “One Big Beautiful Bill Act” in a 21-16 vote—a stunning rebuke that now threatens House Speaker Mike Johnson’s plans to bring the measure to a floor vote next week.
While Democrats unanimously opposed the bill, five Republicans broke ranks, demanding more aggressive spending cuts to Medicaid and green energy subsidies. They warned that the bill, which includes major tax breaks, would further inflate the national debt, now at $36 trillion.
“Something needs to change or you’re not going to get my support,” said Rep. Chip Roy, R-Texas, one of the conservative holdouts.
Conservatives demand deeper cuts, immediate work mandates
The vote exposed rifts within the GOP. Members of the House Freedom Caucus are pressing for steeper reductions to government aid programs and want new work requirements for Medicaid recipients to kick in immediately, rather than in 2029 as proposed.
Rep. Roy criticized the bill’s structure, saying it delivers tax cuts upfront but postpones savings: “We are writing checks we cannot cash, and our children are going to pay the price.”
Rep. Ralph Norman, R-S.C., echoed the sentiment: “I’m a hard no until we get this ironed out.”
The opposition bloc initially included Roy, Norman, Reps. Josh Brecheen of Oklahoma and Andrew Clyde of Georgia. Later, Rep. Lloyd Smucker of Pennsylvania also flipped his vote to no.
New York Republicans push for larger tax breaks
Meanwhile, Republicans from high-tax states like New York are pushing in the opposite direction. They’re demanding an even more generous state and local tax (SALT) deduction than what’s currently in the bill—potentially sending its cost soaring.
As drafted, the legislation would triple the SALT deduction cap from $10,000 to $30,000 for joint filers earning up to $400,000. But Rep. Nick LaLota of New York and others want to raise that ceiling to $62,000 for single filers and $124,000 for couples.
“This is always what happens when you have a big bill like this,” said House Majority Leader Steve Scalise, R-La. “There’s always final details to work out all the way up until the last minute.”
Bill at heart of Trump’s 2024 campaign vision
The defeated bill is central to Trump’s economic platform. It aims to extend his 2017 tax cuts and adds new provisions he promised during his 2024 campaign—such as zero taxes on tips, overtime, and some auto loans.
It also expands the standard deduction to $32,000 for joint filers and boosts the child tax credit to $2,500 temporarily. Simultaneously, it allocates $350 billion for Trump’s immigration enforcement agenda and defense spending.
To fund the plan, the bill proposes scrapping key provisions of President Biden’s Inflation Reduction Act—especially clean energy tax credits—and envisions over $1 trillion in cuts to Medicaid and food assistance programs over ten years.
The Congressional Budget Office estimates the package could leave 7.6 million more people without health coverage and reduce monthly food aid to about 3 million people.
Democrats slammed the proposal as cruel and fiscally reckless. Rep. Brendan Boyle, the top Democrat on the committee, called it “unconscionable.”
Rep. Pramila Jayapal, D-Wash., ridiculed the name of the bill: “One big, beautiful betrayal.” Rep. Morgan McGarvey, D-Ky., said, “To pay for it, kids in Kentucky will go hungry, nursing homes and hospitals will close, and millions of Americans will be kicked off their health insurance.”
(With inputs from AP)
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