Congress Rushes Tax Bill Ahead of Fourth Deadline

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Congress Rushes Tax Bill Ahead of Fourth Deadline \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Trump urged Congress to finalize a sweeping tax-and-spending bill by the Fourth of July. Republicans in House and Senate are working through the weekend, despite internal opposition and procedural hurdles. The 1,000+ page package would lock in tax cuts, boost border security, and slash Medicaid, SNAP, and green energy funding.

Quick Looks

Deadline drive: Trump demands no vacations until the bill lands on his desk by July 4.
Weekend push: Senate working Saturday, House on standby for more votes, Speaker Johnson urging flexibility.
Internal friction: GOP tied up in policy battles—Medicaid, SNAP, and SALT deduction tweaks under fire.
Tax focus: Locks in 2017 Trump-era rates, adds new breaks on tips, overtime, auto loans, and boosts child credit.
Social trade-offs: Adds 80‑hour work requirements for Medicaid/SNAP; CBO projects 10.9M without Medicaid and 3M cut from SNAP.
Border additions: Includes $350B for mass deportations, ICE expansion, detention beds, and state grants.
Special projects: Funds “Golden Dome” missile defense and $40M “National Garden of American Heroes.”
Green rollback: Repeals EV tax credits and renewables incentives—part of $1.3T savings.
Cost conflict: House version adds $2.4T in deficit over ten years; Senate claims only $441B using budget baseline.
Math war: Democrats denounce “magic math,” cite $4.2T cost projection by watchdog group.
Trump’s warning: Tells lawmakers to “lock themselves in a room” if needed to finalize it.

Deep Look

As a tense July 4 deadline looms, Republicans in Congress are locked in an all-out sprint to finalize what may be the most sweeping tax and spending overhaul of the decade. At the center of the political firestorm is a massive, 1,000+ page legislative package backed aggressively by President Donald Trump, who has demanded lawmakers remain in Washington — “no vacations” — until the bill is on his desk.

The pressure is palpable. Senate leaders have warned of weekend sessions, and House Speaker Mike Johnson has advised members to keep their schedules “flexible.” Both chambers are trying to reconcile their differences and finalize a bill that aims to simultaneously extend Trump-era tax breaks, overhaul major social programs, and expand immigration enforcement — all while sparking fierce partisan and intra-party battles.

Tax Breaks at the Core

The bill’s top Republican priority is preventing what party leaders call a looming $3.8 trillion tax hike when the 2017 Trump tax cuts expire this December. The current draft seeks to make permanent existing income tax brackets and deductions, while introducing several new tax breaks that Trump campaigned on, including:

No taxes on tips, overtime pay, or some auto loans
A $6,000 senior deduction (for individuals earning under $75,000)
An expanded child tax credit ($2,200 in the Senate version, $2,500 in the House)

While many middle-class families would see moderate relief (between $500 and $1,500 per year, according to the Congressional Budget Office), the richest households stand to gain the most — about $12,000 annually. Meanwhile, the CBO projects that the poorest Americans could lose $1,600 due to corresponding benefit cuts and regressive offsets.

A major sticking point remains the proposed $40,000 cap on SALT (state and local tax) deductions, which House Republicans favor but Senate conservatives are pushing to lower, citing equity concerns.

Massive Cuts to Medicaid, SNAP, and Clean Energy

To help finance the tax cuts, the GOP bill proposes sweeping reductions to government safety net programs — most notably Medicaid, SNAP (food stamps), and green energy incentives established under Presidents Biden and Obama.

Provisions include:

80-hour monthly work requirements for Medicaid and SNAP recipients up to age 65
Parental work mandates for families with children over 10
SNAP eligibility restrictions that could affect over 3 million recipients
Medicaid cuts that would leave 10.9 million people without coverage, according to the CBO

Republican leaders argue the changes are aimed at “right-sizing” welfare programs for the modern workforce, insisting that recipients can meet the requirement through jobs, training, or volunteering. Speaker Johnson called the work requirement “wildly popular,” saying, “For heaven’s sake, do something constructive.”

However, healthcare experts and many lawmakers warn of devastating impacts, especially for rural hospitals that depend on Medicaid reimbursements. A bipartisan coalition of 16 House Republicans has warned leadership they won’t support a bill that “threatens access to coverage.” Negotiators are exploring the creation of a new rural hospital fund, but no firm agreement has been reached.

In addition, the bill proposes a rollback of Biden-era clean energy tax credits, including those for electric vehicles and renewable energy investment. These cuts — part of a broader effort to reduce spending by $1.3 trillion over the next decade — would significantly undercut federal climate policy goals.

Border, Defense, and Culture Agenda

In parallel, the bill commits $350 billion in new funding to Trump’s signature border and national security agenda. This includes:

Funding for 10,000 new ICE officers with $10,000 signing bonuses
Support for 100,000 immigration detention beds
Annual deportation targets of up to 1 million undocumented immigrants
A new $12 billion grant pool for states that assist with federal deportation efforts
A controversial $3.5 billion federal fund labeled “BIDEN” — an acronym for Bridging Immigration-related Deficits Experienced Nationwide

Beyond immigration, the legislation includes symbolic wins for Trump’s base: a proposed “Golden Dome” missile defense system, and a $40 million National Garden of American Heroes — a cultural touchstone Trump has touted since his first term.

Budget Brawls and “Magic Math”

According to the CBO, the House version of the bill would add $2.4 trillion to the national deficit over the next decade, after accounting for the $1.3 trillion in spending cuts. However, Senate Republicans argue the cost should be far lower — just $441 billion — because they classify the extension of the 2017 tax cuts as “current policy,” not a new expense.

This budget tactic, widely criticized as “magic math,” has drawn sharp rebuke from Democrats and watchdogs like the Committee for a Responsible Federal Budget, which pegs the bill’s true cost at $4.2 trillion. Sen. Jeff Merkley (D-Ore.) called the accounting trick “a gimmick,” warning that “this bill will add trillions upon trillions of dollars to the national debt to fund tax breaks for billionaires.”

A Legislative Crossroads

The political implications are enormous. Trump, fresh off a diplomatic trip to Europe, has demanded unity, telling senators to “lock themselves in a room” if necessary to deliver a win. Yet fractures are emerging even within GOP ranks over Medicaid cuts, state tax limits, and the growing deficit.

The clock is ticking. If Republicans can bridge their differences and deliver a bill before Independence Day, it will represent a major legislative coup for Trump — and a significant reshaping of fiscal, social, and immigration policy. If not, the party may head into the fall divided, and burdened by public backlash over unpopular program cuts and fiscal questions.