(A)Political - May 17th

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Trump might have had successful visits overseas, but quite the opposite has happened on home turf this week. Time to find out why!

Trump’s bill to continue tax breaks hit a setback as hardline conservatives say it didn’t go far enough. The Supreme Court ruled in a 7-2 decision that the Trump administration was not giving adequate notice to fight Federal deportation efforts. Leaked tapes released from Special Counsel Robert Hur’s interview with then President Biden back in 2023 have caused a stir in Washington circles, highlighting a coverup of the former president’s health and fitness.

  • Conservatives block Trump’s ‘Big, Beautiful Bill” From Advancing

  • Supreme Court Deals Blow To Trump’s Immigration Enforcement

  • Leaked 2023 Biden Tapes Showcase Cognitive Decline Of Former President

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Conservatives block Trump’s ‘Big, Beautiful Bill” From Advancing

Speaker of the House Mike Johnson, R-La., speaks during a news conference at the Capitol, May 6, 2025, in Washington. (AP Photo/Rod Lamkey, Jr., File)

By: Atlas

The House Budget Committee on May 16 rejected President Donald Trump’s 1,116-page reconciliation package—marketed as the “One Big Beautiful Bill”—by a 21-16 margin after five Republicans joined every Democrat in opposition. The GOP defections came from Reps. Chip Roy (TX), Ralph Norman (SC), Andrew Clyde (GA), Josh Brecheen (OK), and Lloyd Smucker (PA). Smucker switched from yes to no in a procedural move that allows the measure to be reconsidered. With one Republican absent for the birth of their child, party leaders could afford only two defections; losing five sank the vote and stalled the bill’s path to a planned floor vote before Memorial Day. Committee Chair Jodey Arrington (TX) promptly recessed the markup and set an unusual Sunday-night session to try again.

Bill Contents and Cost Debate

The sweeping measure would extend and expand the 2017 income-tax cuts, eliminate federal taxes on tips, overtime pay, and interest on many auto loans, raise the standard deduction for joint filers to $32,000, and add a one-year $500 boost to the child tax credit. It also bundles Trump priorities on immigration enforcement, energy deregulation, and defense spending, while repealing most Inflation Reduction Act clean-energy credits. To offset an estimated $5 trillion in lost revenue, the package proposes roughly $1 trillion in Medicaid and SNAP savings—chiefly through new work requirements—and assumes faster economic growth.

The non-partisan Joint Committee on Taxation scores the tax provisions at $3.72 trillion over ten years; the Congressional Budget Office says the full bill stays under a $4.5 trillion deficit-impact ceiling set by the Budget panel but would still widen deficits relative to current law. Fiscal watchdog Committee for a Responsible Federal Budget pegs the deficit increase at $3.3 trillion even after the proposed offsets.

Conservative Objections

Hard-line conservatives cited four core complaints:

  1. Deficit trajectory. Rep. Roy said the bill “falls profoundly short” on deficit reduction and “writes checks we cannot cash,” echoing Moody’s same-day downgrade of U.S. credit that flagged growing debt.

  2. Timing of Medicaid changes. Work requirements for able-bodied adults would not start until 2029; critics want them immediate. Norman called the delay “problematic” and a “hard no.”

  3. Green-energy subsidies. The bill phases out Biden-era credits over several years; Roy and Clyde demand an outright, immediate repeal.

  4. Back-loaded savings. Brecheen argued savings come late while tax cuts take effect quickly, increasing near-term borrowing.

Additional GOP Fault Lines

While Freedom Caucus members pressed for steeper spending cuts, blue-state Republicans sought a larger State and Local Tax (SALT) deduction than the bill’s $30,000 cap, proposing up to $124,000 for joint filers. They threaten to withhold support if SALT relief is not expanded. Florida Republicans object to a clause limiting state “provider taxes” that draw federal Medicaid funds. Moderate Midwesterners resist heavy SNAP reductions. House leaders must balance these regional demands without losing conservative votes needed for passage.

Leadership Strategy and White House Pressure

Speaker Mike Johnson insists the package can clear committee and reach the floor “on path” for a House vote next week, but acknowledges “a whole lot of work is still left undone.” Majority Leader Steve Scalise says fixes will come through “assurances” rather than rewriting legislative text, citing time constraints.

From Riyadh, Trump blasted dissenters as “grandstanders” and urged Republicans to “UNITE” behind the bill, warning taxes would “go up 65 %” without it. The post did not sway the holdouts, underscoring limits of presidential influence over intra-party policy details.

Political and Fiscal Stakes

Passage requires all but three GOP votes on the floor, leaving leadership little margin for error. If the measure advances, reconciliation rules would allow Senate passage with 51 votes, bypassing a Democratic filibuster but still requiring near-total GOP unity. Senators have already signaled interest in changes—particularly on Medicaid timing and SALT—foreshadowing further negotiations.

Moody’s downgrade amplified deficit concerns, noting U.S. debt could hit 134 % of GDP by 2035 absent deeper spending cuts. Fiscal hawks view the committee rebuff as leverage to secure stricter offsets; moderates worry prolonged infighting jeopardizes both the bill and the party’s image heading into 2026 midterms.

Next Steps

The Budget Committee will reconvene late Sunday. To flip at least three conservative votes, Johnson and Arrington may:

  • Accelerate work requirements or broaden them to SNAP, moving savings forward;

  • Advance the repeal date for green-energy credits;

  • Offer a manager’s amendment on the floor to expand SALT deductions while finding new offsets;

  • Include deficit “triggers” that cut discretionary spending if targets are missed.

Failure to reconcile demands would likely postpone a full House vote beyond Memorial Day and risk fracturing the GOP coalition needed for any reconciliation package.

Outlook

The committee defeat reveals a familiar dynamic: fiscal hard-liners and regional moderates can both sink legislation despite executive pressure. Whether leadership can align internal factions will determine if Trump’s second-term tax agenda advances or stalls like prior mega-bills. For now, conservatives’ “no” vote has put deficit concerns ahead of party unity, delaying a key plank of the president’s economic plan.

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