Conservatives Sink Trump-Backed Tax Bill in Budget Committee Standoff
WASHINGTON — In a dramatic blow to House Republicans, a major tax-and-spending bill backed by former President Donald Trump was blocked Friday in the House Budget Committee, as five GOP lawmakers joined Democrats in voting it down.
The 1,116-page proposal—dubbed the One Big Beautiful Bill Act in tribute to Trump—was pitched as a sweeping effort to deliver tax breaks and spending cuts. But it now faces an uncertain path after a 16–21 vote derailed its momentum just days before a planned floor vote.
Conservative Rebellion Over Spending Cuts
The holdout Republicans—mostly hardline conservatives from the House Freedom Caucus—are demanding deeper cuts to Medicaid and the rollback of Biden-era green energy tax credits. They argue that without these changes, the bill would only worsen the country’s $36 trillion debt.
“This bill needs serious changes or you’re not getting my support,” said Rep. Chip Roy (R-Texas), one of the conservative dissenters.
Other GOP lawmakers who voted against the bill included Reps. Ralph Norman (S.C.), Josh Brecheen (Okla.), Andrew Clyde (Ga.), and Lloyd Smucker (Pa.). Smucker changed his vote procedurally to allow a future revote, expressing optimism the bill could still be salvaged.
Despite Trump’s strong push—“Republicans MUST UNITE behind ‘THE ONE, BIG BEAUTIFUL BILL!’” he posted on social media—the conservative resistance is holding firm.
SALT-Side Push from High-Tax States
Adding to the chaos, moderate Republicans from high-tax states like New York are insisting on a much bigger deduction for state and local taxes (SALT) than the bill currently allows. The proposal would triple the existing SALT cap from $10,000 to $30,000 for joint filers earning up to $400,000, but lawmakers like Rep. Nick LaLota are pushing for deductions of up to $124,000 for joint filers.
This internal GOP conflict—between conservatives demanding cuts and moderates seeking tax relief—has left House Speaker Mike Johnson scrambling to unite his party before Memorial Day.
What’s Inside the ‘Beautiful’ Bill
At its core, the bill would extend and expand on Trump’s 2017 tax cuts, with new features he campaigned on in 2024, such as:
- No taxes on tips, overtime pay, and certain auto loans
- A larger standard deduction of $32,000 for joint filers
- A temporary boost to the child tax credit from $2,000 to $2,500
- $350 billion in funding for immigration enforcement and Pentagon support
To pay for the plan—which would cost over $5 trillion—the bill proposes:
- Rolling back Biden’s green energy tax credits
- Slashing over $1 trillion from Medicaid and food assistance programs
- Imposing new work requirements: 80 hours/month for certain Medicaid recipients and expanded age criteria for SNAP (food stamp) work rules, affecting people ages 55 to 64
Impact on Americans and the Federal Budget
Democrats warn the cuts would devastate millions of low-income Americans.
“Millions will lose health care and food assistance while the wealthy enjoy massive tax breaks,” said Rep. Brendan Boyle (D-Pa.), the top Democrat on the panel. “That is bad economics. It is unconscionable.”
According to the nonpartisan Congressional Budget Office, the bill would result in:
- 7.6 million fewer people with health insurance
- 3 million fewer monthly recipients of SNAP
While Republicans claim the bill will pay for itself through economic growth, many outside analysts say it would significantly add to the national debt.
What’s Next
The Budget Committee is set to reconvene on Sunday, and GOP leaders are pushing for a vote on the House floor next week. But unless Republicans can bridge the gap between their warring factions, the fate of Trump’s prized tax bill remains in serious doubt.
Source: AP News – Conservatives block Trump’s big tax breaks bill in a stunning setback
