Conservatives block Trump’s tax and spending bill demanding even deeper cuts to social programmes

A group of conservative lawmakers is demanding more cuts to programmes like Medicaid and the rollback of green energy tax credits, before they agree to support the plan. “Something needs to change or you’re not going to get my support,” Republican Representative Chip Roy of Texas said, according to the Associated Press (AP).

House Speaker Mike Johnson had hoped the bill would move to a full House vote next week, but talks are expected to continue over the weekend. Trump is returning from the Middle East and has urged his party to unite. “Republicans MUST UNITE behind, ‘THE ONE, BIG BEAUTIFUL BILL!’” he wrote on social media.

The bill proposes extending tax cuts from Trump’s 2017 term and introduces new ones. These include tax exemptions for tips, overtime pay and some auto loans. It also expands benefits for middle-income earners, such as a higher standard deduction and a temporary increase to the child tax credit.

To balance the plan, the bill cuts more than $1 trillion from healthcare and food assistance programmes over ten years. These cuts include new work requirements for Medicaid and the Supplemental Nutrition Assistance Program (SNAP). According to the nonpartisan Congressional Budget Office, the changes could result in 7.6 million fewer people having health insurance and around 3 million fewer people receiving food assistance each month.

Some Republicans from states with high taxes, like New York, are also holding out. They are asking for a larger deduction for state and local taxes, known as SALT. Currently capped at $10,000, the bill would raise this to $30,000 for joint filers earning up to $400,000 a year. But lawmakers from New York are asking for even higher limits. “We have proposed a deduction of $62,000 for single filers and $124,000 for joint filers,” said Representative Nick LaLota.

Conservatives and New York Republicans are at odds over their demands, while Johnson is trying to keep the party united to pass the bill before Memorial Day.

The package also includes $350 billion in funding for Trump’s immigration policies and military spending. To recover some revenue, it would reduce tax credits introduced under President Joe Biden’s Inflation Reduction Act.

Democrats strongly oppose the bill. “That is bad economics. It is unconscionable,” said Representative Brendan Boyle, the top Democrat on the Budget Committee, according to AP. Representative Pramila Jayapal called the measure “one big, beautiful betrayal.”

Budget Committee usually compiles parts of such packages without much opposition. But Friday’s vote was different, with several conservatives warning in advance they might block the bill. “Sadly,” said Representative Ralph Norman of South Carolina, “I’m a hard no until we get this ironed out.”

Republican leaders say talks will continue in an effort to revise the bill and bring it back to the committee or House floor soon.

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