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Republicans Reject Trump Tax-Cut Bill After President Calls for Unity
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By Reuters
Published 2 months ago on
May 16, 2025

President Donald Trump speaks with reporters in front of the West Wing of the White House, Thursday, May 8, 2025, in Washington. (AP/Alex Brandon)

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WASHINGTON (Reuters) – U.S. President Donald Trump’s sweeping tax bill failed to clear a key procedural hurdle on Friday, as hardline Republicans demanding deeper spending cuts blocked the measure in a rare political setback for the Republican president in Congress.

The vote in the House Budget Committee came despite Trump’s call for Republicans to “UNITE behind” the legislation. “We don’t need ‘GRANDSTANDERS’ in the Republican Party. STOP TALKING, AND GET IT DONE!” he said in a social media post.

Five of 21 Republicans on the panel voted to block the measure, saying they would continue to withhold support unless Speaker Mike Johnson agreed to further cuts to the Medicaid healthcare program for lower-income Americans and the full repeal of green energy tax cuts implemented by Democrats.

As written, the bill would add trillions of dollars to the federal government’s $36.2 trillion in debt over the next decade.

“This isn’t a grandstand,” Representative Ralph Norman, one of the hardline conservatives who have spoken publicly about their opposition to the bill in recent days.

“We’ll compromise somewhere, but just not giving the farm,” the South Carolina Republican told reporters.

The vote is likely a temporary setback for the measure in a Congress that is controlled by Trump’s Republicans and so far has not rejected any of his legislative requests. But it could delay plans for a vote by the full House next week.

Republicans are divided between hardliners who view the package as their best chance to cut spending and more moderate Republicans from competitive districts, who have warned that deeper spending cuts to social safety net programs could jeopardize the 220-213 seat House Republican majority in the 2026 midterm elections.

House Budget Committee Chairman Jodey Arrington stressed the legislation’s importance to voters who elected Trump to the White House and gave the party full control of Congress last November.

“They want common sense policies. And they want from all of us a commitment to putting America and Americans first. Let’s give the people what they voted for,” the Texas Republican said.

Writing Checks We Cannot Cash

Republican Representatives Norman, Chip Roy, Andrew Clyde, Josh Brecheen and Lloyd Smucker joined all 16 Democrats on the committee in voting against the measure.

“We are writing checks we cannot cash and our children are going to pay the price. So, I am a ‘no’ on this bill unless serious reforms are made,” Roy, of Texas, told the committee.

The lawmakers said they hoped to reach a deal with Johnson to amend the bill over the weekend.

Roy, Norman, Clyde and Brecheen are members of the ultraconservative House Freedom Caucus, which later said in a social media post: “We are not going anywhere and we will continue to work through the weekend.”

Smucker said his “no” vote, changed from an initial “yes,” was a parliamentary maneuver meant to ensure the measure can be taken up again once Johnson has brokered an agreement. Smucker held out hope for another vote on Monday.

The legislation would extend tax cuts passed during Trump’s first term. Congress’ bipartisan Joint Tax Committee estimates the tax cuts would cost $3.72 trillion over a decade. Trump has highlighted measures including lifting taxes on tips and overtime that Republicans say would boost working-class Americans, while critics say the bill will offer more benefits to the wealthy.

Democrats condemned the legislation as a vehicle for giving billionaires tax cuts, while citing a projection from nonpartisan congressional researchers that proposed spending cuts to Medicaid and federally subsidized private health insurance available through the Affordable Care Act could lead to 8.6 million Americans losing health coverage.

“No other previous bill, no other previous law, no other previous event caused so many millions of Americans to lose their healthcare. Not even the Great Depression,” said Representative Brendan Boyle, the committee’s top Democrat.

The Republicans are split between three factions: moderates from Democratic-led states who want to raise a federal deduction for state and local taxes; hardliners demanding that a bigger SALT deduction be offset by deeper cuts to Medicaid and the full repeal of green energy tax credits; and other moderates determined to minimize Medicaid cuts.

The proposed legislation would impose work requirements on Medicaid beginning in 2029. Hardliners want those to begin immediately and have called for a sharp reduction in federal contributions to Medicaid benefits available to working-class people through the Affordable Care Act – an option vehemently opposed by Republican moderates.

(Reporting by David Morgan; Additional reporting by Bo Erickson; Editing by Scott Malone, Chizu Nomiyama and Alistair Bell)

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