WASHINGTON (AP) – House Republicans are proceeding cautiously, advancing Donald Trump's substantial tax cut package during a rare Sunday night vote. However, it remains slightly altered as conservative holdouts seek to accelerate Medicaid cuts and demand revisions to the Green Energy Program before offering their full support.
Speaker Mike Johnson met with Republican lawmakers shortly before the session and acknowledged that there were still elements to finalize, stating some modifications were underway but refrained from disclosing specifics.
These arrangements set the stage for a challenging week for GOP leadership as they aim to pass the home package ahead of the anniversary deadline looming a week from now. The Budget Committee, which couldn’t progress a few days prior due to opposition from four conservative Republicans, managed to move forward on Sunday with a 17-16 vote after the dissenting members switched to “now” to facilitate the process.
“The bill still doesn't meet that moment,” remarked Rep. Chip Roy of R-Texas, leader of the Freedom Caucus, in a social media update shortly after the late-night session. “We need to do better before we can endorse the final product.”
The path ahead for Johnson remains uncertain as he attempts to unify the narrow majority of his house. The administration’s top priority includes extending tax credits while advancing funding for border security and deportation — all while curbing expenditure.
Critics among Republicans contended that the new spending and tax reductions in the bill are prioritized while cost-offset measures are deferred. They are particularly advocating for expedited requirements regarding new jobs for healthy Medicaid participants.
Johnson expressed a desire to implement work requirements “as soon as possible,” though he acknowledged that overhauling the system may take additional time for state compliance. Currently, these requirements would not commence until 2029 under the existing bill.
“There are details to refine and further aspects to consider,” stated Johnson outside the hearing room.
“However, I anticipate thoughtful and productive discussions in the forthcoming days. We are confident in delivering a finalized version that will pass.”
While further discussions are anticipated, Johnson is contemplating bringing the bill to the House floor by week’s end.
Democrats condemned Republicans’ proposition to cut Medicaid and food stamps as a means to balance tax deduction expenses.
“This spending bill is detrimental, and I believe the American people recognize that,” remarked Ds.C. Rep. Jim Clyburn during a segment on CNN’s “Union Status” on Sunday. “Nonetheless, there’s a fundamental issue when the burden falls heavily on our families, and that’s what we’re witnessing here.”
When Republicans sought to advance the bill from the House Budget Committee last week, the Deficit Hawks, coupled with Democrats, obstructed the measure from reaching the full House.
The same four Republicans — Roy and Representatives Josh Bretzin of Oklahoma and Andrew Clyde of Georgia — voted “present” on Sunday.
Norman recently highlighted a concern regarding the national credit rating amidst discussions about sudden funding cuts.
“We have much to accomplish,” said Norman. “We are optimistic about our progress and eager to advance the bill.”
At its core, the extensive legislative package seeks to extend existing income tax provisions approved during Trump’s inaugural term in 2017, adding a temporary new provision that the president is advocating for in the 2024 campaign. This measure includes no tax provisions for overtime costs and car loan interest payments. It also proposes a substantial increase in spending for border security and defense.
The nonpartisan financial watchdog, the Committee for a Responsible Federal Budget, estimates that the House bill is projected to add approximately $3.3 trillion to the national debt over the next decade.
Johnson is not only addressing concerns from deficit-minded members of his party but also facing pressure from centrists who are cautiously scrutinizing the potential revisions to Medicaid, the Food Aid Program, and the rollback of clean energy tax credits. Republican representatives from New York and other regions are also demanding significantly larger state and local tax credits.
The current proposal aims to triple the existing $10,000 cap on state and local tax credits, elevating it to $30,000 for joint filers with incomes up to $400,000 annually.
Rep. Nick Larota, a key figure among New York lawmakers, asserted that he is advocating for lifting the cap to propose a $62,000 deduction for individual filers and a $124,000 deduction for joint filers.
Rep. Jody Arlington, chair of the House Budget Committee, confirmed that the bill remains under negotiation.
“Currently, discussions are ongoing,” Arlington stated. “They will continue through the week, and I have no doubt we will present this significant, transformative bill to the floor of our chamber soon.”
If the bill clears the House this week, it will advance to the Senate, where Republican lawmakers are also expecting changes that could complicate the final passage of the House version.
Source: apnews.com