Republicans are making a concerted effort to get their ambitious tax cut and border security package back on track during an extraordinary Sunday night committee meeting. This follows a setback where the House Budget Committee voted against advancing the measure just two days prior. House Speaker Mike Johnson is eager to reverse this decision quickly.
In a surprising turn of events, deficit hawks aligned with Democratic lawmakers on the House Budget Committee to vote against moving the measure forward to the full House. The vote saw five Republicans dissent, with one voting no on procedural grounds, while the other four raised concerns about the bill’s potential impact on federal budget deficits. Johnson, however, remains optimistic that the bill will pass out of committee and reach the House floor by the end of the week. In a recent interview with Fox News, he stated, “This is the vehicle through which we will deliver on the mandate that the American people gave us in the last election.”
The Republicans who opposed the measure pointed out that the new spending and tax cuts are structured to be front-loaded, while the offsets for these costs are back-loaded. For instance, they are proposing to expedite new work requirements for able-bodied participants in Medicaid, which currently would not take effect until 2029 under the existing bill. Rep. Chip Roy of Texas, a committee member, expressed his concerns, stating, “We are writing checks we cannot cash, and our children are going to pay the price. Something needs to change, or you’re not going to get my support.”
Johnson explained that the delayed start date for the work requirements was intended to allow states to “retool their systems” and ensure that all new laws and safeguards can be implemented effectively. Alongside Roy, Reps. Ralph Norman of South Carolina, Josh Brecheen of Oklahoma, and Andrew Clyde of Georgia also voted against the measure. Meanwhile, Rep. Lloyd Smucker of Pennsylvania switched his vote to no in a procedural move, indicating confidence that Republicans will ultimately “get this done.” Johnson confirmed that discussions to address the concerns raised were ongoing as of Sunday.
Interestingly, the committee's decision to reject the bill came after former President Donald Trump urged unity among Republicans through a social media post. He wrote, “We don’t need ‘GRANDSTANDERS’ in the Republican Party. STOP TALKING, AND GET IT DONE!” This call for action underscores the urgency within the party to solidify their legislative agenda.
At its core, the extensive package seeks to permanently extend the existing income tax cuts first enacted during Trump's presidency in 2017, while also introducing temporary new tax benefits that he campaigned on for the 2024 election. These include eliminating taxes on tips, overtime pay, and auto loan interest payments. Additionally, the measure proposes significant spending increases for border security and defense initiatives. According to the Committee for a Responsible Federal Budget, this legislation could add approximately $3.3 trillion to the national debt over the next decade.
Democratic lawmakers are largely opposed to the proposed legislation, which Republicans have dubbed “The One, Big, Beautiful Bill Act.” Rep. Pramila Jayapal of Washington referred to it as “one big, beautiful betrayal” during a previous committee hearing. Rep. Jim Clyburn of South Carolina articulated his concerns on CNN’s “State of the Union,” emphasizing, “There is nothing wrong with us bringing the government in balance. But there is a problem when that balance comes on the back of working men and women. And that’s what is happening here.”
Johnson faces not only the challenge of appeasing deficit hawks within his party but also the scrutiny of centrists who are cautious about the proposed changes to Medicaid, food assistance programs, and the reduction of clean energy tax credits. Additionally, Republican lawmakers from New York and other regions are advocating for a larger state and local tax deduction. The current bill suggests tripling the existing $10,000 cap on this deduction to $30,000 for joint filers earning up to $400,000 annually. Rep. Nick LaLota, a leading voice among New York lawmakers, has proposed a much larger deduction of $62,000 for single filers and $124,000 for joint filers.
If the bill successfully passes the House this week, it will move to the Senate. Here, Republican lawmakers are also contemplating changes that could complicate its final passage. Johnson stated, “The package that we send over there will be one that was very carefully negotiated and delicately balanced, and we hope that they don’t make many modifications to it because that will ensure its passage quickly.”
