In a big embarrassment to President Donald Trump, House Republicans failed to push their package of tax breaks and spending cuts through the Budget Committee, as some conservatives joined Democrats in voting against it.
The vote failed 16-21, but the holdout lawmakers vowed to stay all weekend to negotiate changes as the Republican president is returning from the Middle East.
The hard-right lawmakers are insisting on steeper spending cuts to Medicaid and the Biden-era green energy tax breaks, among other changes for extending support to Trump’s “beautiful” bill. They also warn that the tax cuts would pile an additional $36 trillion onto the nation’s debt.
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The One Big Beautiful Bill Act is at a critical moment as conservatives are holding out for steeper cuts to help offset the costs of tax breaks. Meanwhile, lawmakers from high-tax states like New York are demanding a deeper tax deduction for their constituents.
Johnson has insisted Republicans are on track to pass the bill, which he believes will inject a dose of stability into a wavering economy.
Democrats slammed the package, but will not be able to block it if Republicans unite ultimately. They stress that millions of people would lose their health coverage if the bill passes while the wealthiest Americans would reap enormous tax cuts.
“That is bad economics. It is unconscionable,” said Rep. Brendan Boyle, the top Democratic lawmaker on the panel.
The Budget panel is one of the final stops before the package is sent to the full House floor for a vote, which is expected as soon as next week. Typically, the job of the Budget Committee is more administrative as it compiles the work of 11 committees that draw up various parts of the big bill.
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Four Republican conservatives initially voted against the package — Roy and Reps. Ralph Norman of South Carolina, Josh Brecheen of Oklahoma, Rep. Andrew Clyde of Georgia. Then Rep. Lloyd Smucker of Pennsylvania switched his vote to no.
“We are writing checks we cannot cash, and our children are going to pay the price,” Roy said.
“Sadly,” added Rep. Ralph Norman, R-S.C., “I’m a hard no until we get this ironed out.”
The bill proposes trillions of dollars in tax cuts and a big boost to the US military and to national security — largely paid for by overhauls to federal health and nutrition programmes and cuts to energy programmes.
Trump posted to Truth Social on Friday, “We don’t need ‘GRANDSTANDERS’ in the Republican Party. STOP TALKING, AND GET IT DONE!”
“Republicans MUST UNITE behind, ‘THE ONE, BIG BEAUTIFUL BILL!,’” he said.