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Trump’s Tax Bill Advances as Conservatives Demand Changes

Trump’s Tax Bill Advances as Conservatives Demand Changes/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump’s sweeping tax cut bill advanced out of a key House committee during a rare Sunday night vote, but only narrowly as conservative Republicans demand more aggressive spending cuts. The bill extends 2017 tax cuts and adds new breaks for tips and auto loans, while triggering clashes over Medicaid, green energy, and food assistance. House leaders now race to finalize the bill ahead of a looming Memorial Day deadline.

FILE – Republican presidential nominee former President Donald Trump dances at a campaign event at the Cobb Energy Performing Arts Centre, Oct. 15, 2024, in Atlanta. (AP Photo/John Bazemore, File)

Trump Tax Package Update: Quick Looks

  • House Budget Committee passes Trump’s tax bill 17–16 after rare Sunday session.
  • Conservatives voted “present” to allow passage but demand deeper cuts.
  • Speaker Mike Johnson says “more details” must be worked out.
  • Freedom Caucus members want faster Medicaid work requirements.
  • Medicaid changes under the bill wouldn’t begin until 2029.
  • Democrats blast cuts to safety net programs like SNAP and Medicaid.
  • Tax breaks would include tips, overtime, and auto loan interest.
  • Border security and defense funding also included in the bill.
  • Centrist Republicans want higher state and local tax (SALT) deductions.
  • The bill could add $3.3 trillion to the national debt.
FILE – The Capitol is seen in Washington, March 25, 2025. (AP Photo/J. Scott Applewhite, File)

Trump’s Tax Bill Advances as Conservatives Demand Changes

Deep Look

Trump’s Major Tax Bill Clears Committee Amid GOP Infighting Over Spending Cuts

WASHINGTON, D.C.President Donald Trump’s massive new tax overhaul has taken a key step forward after a late-night vote Sunday in the House Budget Committee, but deep divisions remain within the GOP as conservatives push for tougher spending cuts before backing the bill in full.

The panel voted 17-16 to advance the legislation after four conservative Republicans voted “present,” allowing the package to move forward without supporting it outright. Their objections — centered on the bill’s spending levels and delayed Medicaid reforms — now threaten to derail the measure unless significant changes are made in the coming days.

Speaker Mike Johnson is now leading a high-stakes sprint to pass the bill through the full House before Memorial Day, racing against time to secure consensus in a sharply divided Republican caucus.

Freedom Caucus Wants Faster Cuts

Among the most vocal critics are members of the House Freedom Caucus, including Rep. Chip Roy (R-TX), who argued that the bill “does not yet meet the moment.” Roy and fellow Republicans Ralph Norman (SC), Josh Brecheen (OK), and Andrew Clyde (GA) said they support the bill’s aims but want Medicaid work requirements to begin sooner than the current timeline of 2029.

“There’s no excuse to delay these reforms,” said Norman. “With the debt where it is, we have to act urgently.”

Speaker Johnson acknowledged the concerns but noted the challenges of implementing such reforms quickly at the state level.

“We’re still ironing out the details,” he said Sunday night, promising more negotiations in the days ahead.

Democrats Denounce Safety Net Cuts

Democrats sharply criticized the bill, accusing Republicans of funding tax breaks for the wealthy by gutting programs that support vulnerable Americans.

“This spending bill is terrible,” said Rep. Jim Clyburn (D-SC) on CNN’s State of the Union. “Balancing the budget on the backs of working families is not fiscal responsibility — it’s cruelty.”

The package includes deep cuts to Medicaid, food assistance, and clean energy programs to offset the cost of the tax cuts, which the Committee for a Responsible Federal Budget estimates would add $3.3 trillion to the national debt over the next decade.

What’s in the Bill?

The legislation builds on the 2017 Trump tax cuts, making those income tax reductions permanent. It also adds new temporary tax breaks Trump promised during his 2024 campaign, including:

  • No federal taxes on tips
  • Tax-free overtime pay
  • Tax deduction for auto loan interest payments
  • Tripled cap on the SALT deduction — from $10,000 to $30,000 for joint filers under $400,000 income

The bill also allocates billions in border security funding and military spending, a move aimed at gaining broader GOP support.

Centrist Demands on SALT Deductions

Even as conservatives push for sharper cuts, moderate Republicans from high-tax states like New York and California are threatening to withhold their votes unless the bill expands the state and local tax (SALT) deduction further.

Rep. Nick LaLota (R-NY) and others are calling for increases to $62,000 for single filers and $124,000 for joint filers — far higher than the $30,000 currently proposed.

“We need relief that reflects the true cost of living in our states,” LaLota said.

The Road Ahead

House Budget Committee Chairman Jodey Arrington (R-TX) said negotiations are far from over:

“Deliberations continue at this very moment. They will go on into the week, likely right up until we put this big, beautiful bill on the House floor.”

If passed by the House later this week, the bill heads to the Senate, where more changes could make final passage even more complex. Several Senate Republicans have already signaled they will seek amendments — particularly on Medicaid and debt offsets — creating more hurdles for Johnson and the White House.

Final Word

The weekend vote marks a rare show of progress for House Republicans, but it also underscores the fragile coalition Johnson must hold together. With fiscal hawks, moderates, and Trump loyalists pulling in different directions, the bill’s future remains uncertain — even as the president’s top legislative priority hangs in the balance.


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