A sweeping new proposal from President Donald Trump is facing major resistance from within his own party, threatening to derail what he’s called a “once-in-a-generation” legislative victory.
House Republicans on Friday failed to advance the One Big Beautiful Bill Act—a sprawling 1,100-page proposal combining massive tax cuts with deep spending reductions. The bill was blocked in the Budget Committee by a group of conservative Republicans who argued the package does not go far enough in slashing Medicaid spending and repealing Biden-era green energy tax credits.
What’s in the Trump proposal?
At the core of the legislation are extended and expanded tax cuts, including:
- Permanent reductions to income taxes
- Elimination of taxes on tips, overtime, and some auto loans
- An expanded standard deduction of $32,000 for joint filers
- A child tax credit boost to $2,500
- Tax relief for Social Security recipients
The proposal also includes $350 billion for border enforcement and defense spending, including funds for expanding the border wall and hiring thousands of new immigration and customs personnel.
Internal GOP battle over Medicaid and SALT
Despite Trump’s push for party unity, hardline conservatives blocked the bill, calling for:
- Immediate work requirements for Medicaid recipients (rather than starting in 2029)
- The elimination of green energy tax incentives from President Biden’s Inflation Reduction Act
At the same time, moderate Republicans from high-tax states like New York are demanding a much larger state and local tax (SALT) deduction than the $30,000 cap proposed in the bill. Some have called for deductions of up to $124,000 for joint filers.
This standoff between factions of the GOP has left Speaker Mike Johnson scrambling to revise the bill in time for a potential floor vote next week.
How the proposal affects benefits
The bill proposes to cover more than $5 trillion in tax breaks by cutting over $1 trillion from safety-net programs, including:
- Work requirements of 80 hours per month for able-bodied Medicaid recipients
- SNAP (food stamps) eligibility changes for older Americans (ages 55–64)
- Reduced federal cost-sharing, shifting more burden to states
According to the Congressional Budget Office, the proposal could result in:
- 7.6 million fewer people with health insurance
- 3 million fewer monthly SNAP recipients
Democrats slammed the bill as prioritizing tax breaks for the wealthy over essential services. “That is bad economics. It is unconscionable,” said Rep. Brendan Boyle, the committee’s top Democrat.
Trump’s messaging and next steps
Trump has repeatedly urged Republicans to pass the bill, writing online: “We don’t need GRANDSTANDERS in the Republican Party. STOP TALKING, AND GET IT DONE!”
Despite Friday’s failed committee vote, GOP leaders plan to revisit the bill Sunday. Lawmakers say negotiations will continue through the weekend in hopes of bringing a revised proposal to the full House by Memorial Day.
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