GOP panel clears Trump’s tax and spending package after weekend vote


Summary

Committee approval

House Republicans advanced a Trump-backed tax and spending bill after a late-night Budget Committee vote, with four holdouts voting "present."

Policy changes

The bill extends 2017 tax cuts, adds exemptions for tips and overtime, boosts defense and border spending and adds work requirements for Medicaid.

Ongoing negotiations

Conservatives want faster cuts and earlier enforcement; moderates seek a higher SALT deduction cap. Senate passage remains uncertain due to deficit concerns.


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Summary

Committee approval

House Republicans advanced a Trump-backed tax and spending bill after a late-night Budget Committee vote, with four holdouts voting "present."

Policy changes

The bill extends 2017 tax cuts, adds exemptions for tips and overtime, boosts defense and border spending and adds work requirements for Medicaid.

Ongoing negotiations

Conservatives want faster cuts and earlier enforcement; moderates seek a higher SALT deduction cap. Senate passage remains uncertain due to deficit concerns.


Full story

House Republicans advanced a sweeping tax and spending package backed by President Donald Trump, clearing a significant hurdle late Sunday, May 19, in a rare night session of the House Budget Committee. The bill would make Trump’s 2017 tax cuts permanent; add new tax exemptions for tips and overtime pay; boost military and border spending; and introduce new work requirements for Medicaid and food assistance programs.

Lawmakers are still negotiating the bill and expect to revise it further in the House Rules Committee before it reaches the House floor. House leaders hope to bring the bill to a floor vote before Memorial Day.

How did the bill clear the committee?

The committee approved the bill 17-16 after four Republican holdouts, Reps. Chip Roy, R-Texas; Ralph Norman, R-S.C.; Josh Brecheen, R-Okla.; and Andrew Clyde, R-Ga., voted “present,” allowing the bill to advance without switching their formal opposition. The same lawmakers blocked the legislation on Friday, arguing that the spending cuts came too late to be effective.

They specifically criticized the 2029 start date for Medicaid work requirements and the slow phase-out of green energy tax credits, which they argued would fail to produce meaningful savings in the near term.

Speaker Mike Johnson, R-La., called the committee vote a “big win,” while acknowledging that negotiations will continue in the coming days. “There’s a lot more work to do, we’ve always acknowledged that towards the end there will be more details to iron out, we have several more to take care of,” Johnson said.

What changes did conservatives demand?

The four holdouts said they reached informal agreements to move up the start date for new Medicaid work requirements and accelerate the phase-out of green energy subsidies. However, the bill’s official text does not yet reflect those terms, and GOP leaders have not disclosed the full scope of any side deals.

Roy said the revised version moves “Medicaid work requirements forward and reduces the availability of future subsidies under the green new scam,” though he warned the package still “does not yet meet the moment.”

The formal bill text does not yet include these changes, and Republican leaders have declined to disclose any specific side deals or amendments. Norman pointed to the recent downgrade of the U.S. credit rating and long-term debt projections as evidence that deeper spending cuts are needed.

“We’ve got a lot more work to do,” Norman said. “We’re excited about what we did. We want to move the bill forward.”

Despite their conditional support, none of the four holdouts has committed to backing the bill in its final form. Roy, who also serves on the House Rules Committee, said he won’t fully support the package unless lawmakers make further revisions.

Will the bill pass the Senate?

Even if the bill clears the full House, Senate Republicans have signaled it will need significant changes to survive. Sen. Ron Johnson, R-Wis., called the package a “sad joke,” expressing concern over its projected impact on the deficit.

The nonpartisan Committee for a Responsible Federal Budget estimates the legislation could add roughly $3.3 trillion to the national debt over the next decade, due largely to front-loaded tax cuts and delayed spending reductions.

Moderates from states like New York and New Jersey, including Reps. Mike Lawler and Andrew Garbarino, have pushed for a higher SALT cap than the $30,000 currently proposed, saying it’s insufficient for their high-tax districts.

Evan Hummel (Producer), Jonah Applegarth (Production Specialist ), Devan Markham (Morning Digital Producer), and Kaleb Gillespie (Video Editor) contributed to this report.
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Why this story matters

The advancement of President Trump's sweeping tax and spending package in the House Budget Committee highlights deep divisions and ongoing negotiations within the Republican Party over federal spending, taxation and social program reforms. The outcome is likely to affect millions of Americans and the nation’s fiscal trajectory.

Republican intra-party negotiations

Republican lawmakers are split between conservatives demanding deeper spending cuts and moderates concerned about the potential political and social impact, revealing enduring intraparty tensions that could shape the final legislation.

Social program reforms

The bill introduces significant changes to Medicaid, food assistance and other safety-net programs. Analysts and lawmakers are debating how these reforms could affect access to healthcare and support for millions of low-income Americans.

Federal deficit and debt

Nonpartisan fiscal watchdogs and credit agencies warn that the proposed tax cuts and delayed spending reductions could add trillions to the national debt, raising concerns about long-term fiscal sustainability and the potential economic consequences.

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Behind the numbers

The nonpartisan Committee for a Responsible Federal Budget estimates that the House bill would add approximately $3.3 trillion to $5 trillion to the national debt over the next decade. According to the Congressional Budget Office, 8.6 million people could lose Medicaid coverage due to proposed eligibility changes.

Context corner

Historically, large-scale tax and spending bills such as this have encountered fierce debate over long-term fiscal sustainability and program cuts. The Medicaid work requirement proposal echoes similar debates during the 1996 welfare reforms. The push to extend the 2017 tax cuts reflects ongoing GOP policy aims dating back to the Bush and Reagan eras, which were aimed at lowering federal tax burdens.

Debunking

Fact-checks show that claims about immediate, deep cuts to Medicaid are partly accurate. While the bill accelerates work requirements, the timing and extent of coverage losses vary by state and implementation specifics. Prior outcomes do not support assertions that the tax cuts will fully pay for themselves; past analyses indicated increased deficits despite similar promises.

Bias comparison

  • Media outlets on the left frame the bill primarily as a “big betrayal,” emphasizing harm to working-class Americans through Medicaid and food assistance cuts, warning it exacerbates the national debt and undermines clean energy efforts with terms like “ugly truth.”
  • Not enough coverage from media outlets in the center to provide a bias comparison.
  • Media outlets on the right champion Trump’s branding of a “big, beautiful bill,” spotlighting it as a historic win, promising economic growth, job creation and fiscal responsibility through spending cuts and Medicaid work requirements—framing opposition as “GOP rebel mutiny” to emphasize party unity.

Media landscape

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Key points from the Left

  • President Donald Trump's tax-cut bill advanced from the House Budget Committee with a 17-16 vote after hardliners voted "present" to allow it to pass.
  • The Congressional Budget Office estimates the bill may increase the federal deficit by nearly $1.9 trillion over a decade, impacting low-income Americans by potentially removing 8.6 million from Medicaid.
  • House Speaker Mike Johnson stated revisions were made to the tax bill, which aims to balance the budget while generating economic growth, despite ongoing negotiations.
  • Democratic representatives condemned the bill, with Rep. Jim Clyburn calling it a threat to working Americans.

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Key points from the Center

  • House Republicans moved forward with President Donald Trump’s comprehensive legislation on tax reductions and border enforcement during an uncommon Sunday night vote in the Budget Committee on May 18, 2025.
  • The bill follows intense partisan divisions, with conservatives demanding deeper Medicaid cuts and moderates fearing election backlash ahead of the November 2026 midterms.
  • The legislation combines a permanent extension of the 2017 tax cuts with additional temporary tax relief measures and seeks to raise the cap on deductions for combined state and local taxes to $30,000 for married filers earning up to $400,000 annually.
  • The Congressional Budget Office projects that the bill will increase the federal debt by more than $3.3 trillion within ten years, and the proposed changes to Medicaid could lead to over 10 million individuals losing their health coverage.
  • Speaker Mike Johnson plans to bring the bill to the House floor before the week's end amid ongoing negotiations and uncertainty over Senate approval.

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Key points from the Right

  • The House Budget Committee approved a motion to advance a reconciliation package with a 17-16 vote on May 18, 2025.
  • Rep. Chip Roy expressed concerns, stating that the bill fails to implement timely Medicaid work requirements and leaves many subsidies intact.
  • House Speaker Mike Johnson indicated that some minor changes were made to appease critics during negotiations to ensure the bill's advancement.
  • Democrats overwhelmingly rejected the measure, with Representative Pramila Jayapal labeling it a "big, beautiful betrayal" and highlighting concerns over the bill's impact on federal spending and deficits.

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