WASHINGTON (AP) – House Republicans are advocating for a vote on their Trillion Dollar Tax Reduction Package, sealing last-minute deals to garner support and fulfill President Donald Trump’s legislative agenda.
Trump has personally urged the Republican majority to “stop the discussion and get it done,” leveraging his political influence. However, GOP leaders burned the midnight oil to win over hesitant Republicans who expressed various concerns, particularly regarding the nation’s $36 trillion debt.
A recent report from the Congressional Budget Office warned that the tax measures could increase the federal deficit by $3.8 trillion over the next ten years. Proposed changes to Medicaid, food stamps, and other services are expected to result in a $1 trillion reduction in spending. The CBO noted that while the wealthiest households would see an increase in resources, the lowest-income families would face declines.
Throughout the night, Republicans congregated at the Capitol to discuss final adjustments to the package. Democrats swiftly sought to delay the vote, but their motion was unsuccessful.
“President Trump’s ‘big, beautiful bill’ demands a big, beautiful vote,” said Speaker Johnson, R-La. “We’re going to make this happen.”
This moment is crucial for the president and his party in Congress, who have invested significant political capital in the early months since Trump resumed his presidency. If House Republicans manage to navigate the unified opposition from Democrats, the package will advance to the Senate.
The timing of the package coincides with a challenging period for the U.S. economy, which is facing uncertainty. Hakeem Jeffries, the Democratic leader stated, “We expect more information to surface about this harmful and unnecessary bill as we try to hastily push this unpopular law through the House.”
At its core, the extensive over 1,000-page invoice aims to extend tax credits established during Trump’s first term in 2017 while also introducing new ones he campaigned for in the 2024 presidential election.
To offset some lost income, Republicans have proposed cuts to federal safety net programs and a significant rollback of Green Energy Tax Deductions initiated under Biden’s inflation reduction law.
The package additionally includes $350 billion in new spending. Approximately $150 billion will be allocated to the Pentagon, including funding for the President’s new Golden Dome Defense Shield, alongside other initiatives for Trump’s large expulsions and border security agendas.
The title of the package echoes Trump’s own rhetoric: “One Big Beautiful Bill Act.”
Just as Trump has assured voters about tax provisions, he claims this package delivers. “No taxes are hinted” for certain workers, including those in some service sectors, auto loan interest, or overtime pay.
It also raises the standard income tax credit to $32,000 for joint filers and increases the child tax credit to $2,500. The $4,000 deduction for seniors at specific income levels will be reinforced to alleviate taxes on Social Security income.
To curtail spending, the package imposes new work requirements on many Medicaid recipients.
In a similar vein, individuals receiving food stamps through the Supplemental Nutrition Assistance Program (SNAP) will also face new work conditions.
Older Americans up to age 64, without dependents, must work 80 hours per month or engage in community programs, while parents with children over 7 years old must meet work requirements. Currently, such conditions apply after the age of 18.
Republicans emphasize their commitment to eliminating waste, fraud, and abuse within federal programs.
The Congressional Budget Office projects that approximately 8.6 million fewer individuals will have health insurance due to various alterations to Medicaid and the Affordable Care Act, alongside a decrease in SNAP beneficiaries.
GOP members are aiming for a Memorial Day deadline to finalize the package, a timeline established to help Johnson address dissent within his ranks.
Conservatives are advocating for quicker and more significant cuts in federal programs to counterbalance substantial losses in tax revenue. GOP leaders have advanced the start date for Medicaid work requirements from 2029 to 2027.
Conversely, more moderate lawmakers express apprehension regarding Medicaid changes, fearing potential healthcare losses for their constituents. Others worry that phasing out renewable energy tax credits may impede businesses investing in green projects across multiple states.
Additionally, a coalition of lawmakers from New York, California, and other high-tax states are advocating for larger state and local tax credits, commonly referred to as SALT, for their home constituents.
As the bill stands, it now triples the $10,000 cap on state and local tax deductions, increasing it to $30,000 for joint filers earning up to $400,000 annually. The proposal includes a $62,000 deduction for single filers and a $124,000 deduction for joint filers.
Trump has encouraged Republicans to rally behind the bill, stating that it is “shaped in his image,” and warned that any dissenting lawmakers would be regarded as “fools” after their meeting on Tuesday.
However, it remains unclear whether Trump’s intervention has successfully sealed the deal.
Rep. Thomas Massey of Kentucky, a conservative Republican, has publicly stated that he hasn’t yet voted.
“We still have a long way to go,” remarked Rep. Andy Harris, chairman of the House Freedom Caucus.
The nonpartisan financial watchdog group, the Responsible Federal Budget Committee, estimates that the House bill is projected to add around $3.3 trillion to the national debt over the next decade.
Source: apnews.com