House Republicans are pushing forward with efforts to advance key components of their bill to fund President Donald Trump’s agenda, including significant cuts to Medicaid and an extension of the 2017 tax cuts. This is happening despite internal disagreements within the party. The House Energy and Commerce Committee and the House Ways and Means Committee held extensive markups aiming to bring the legislation to the floor.
Speaker Mike Johnson is facing pushback from different factions within his party, with only a slim majority supporting him. Texas Republican Rep. Chip Roy has voiced opposition, demanding substantial changes to support the final package.
He stated that while progress has been made, significant additional changes are needed for his support. The current proposal includes measures to cut Medicaid spending by imposing work requirements, conducting more frequent eligibility checks, and penalizing states that provide Medicaid to illegal immigrants. This is despite President Trump previously assuring voters that Medicaid would not face cuts.
With Republicans controlling both chambers of Congress, they are utilizing a reconciliation process to fast-track the legislation. The Congressional Budget Office confirmed that the proposal could achieve the targeted $880 billion in savings over the next decade. The Medicaid-related components alone are projected to save about $715 billion, though this could lead to millions more Americans being uninsured.
House GOP fiscal policy challenges
Among the contentious points in the bill are provisions to defund Medicaid support for organizations providing abortion services and restrictions on federal Medicaid funds going to states that offer gender-affirming care for transgender minors. The Senate Republicans have also expressed concerns.
Missouri Sen. Josh Hawley warned against the Medicaid cuts, deeming them morally and politically damaging. The Ways and Means Committee is working on the tax aspects of the bill, including a permanent extension of Trump’s 2017 Tax Cuts and Job Act, alongside temporary measures like no tax on tips and overtime.
Other elements include a MAGA savings account for children, increases to the child tax credit, and a significant lift in the state and local tax deduction cap for those earning under $400,000. A controversial aspect of the tax provisions is the increase in the state and local tax deductions cap, which some moderate Republicans argue is insufficient. New York Rep.
Nick LaLota and Rep. Mike Lawler have publicly criticized the proposal, signaling their potential opposition. The bill also proposes lifting the debt ceiling by $4 trillion, a measure that must be addressed by mid-July to avoid default.
The House GOP faces a challenging road ahead as they attempt to reconcile the various demands within their party while advancing significant fiscal policies.