Trump budget: GOP finds new major holiday deadline amid Medicaid, IRA divide
Republican leaders are aiming to pass a comprehensive bill that would enshrine President Donald Trump’s agenda into federal law by the Fourth of July. The ambitious goal was set by House Ways & Means Committee Chairman Jason Smith, who expressed his desire for Trump to sign the “big, beautiful bill” on the 250th anniversary of the United States’ founding.
The proposed legislation seeks to overhaul key policy areas such as tax, defense, energy, immigration, border security, and the debt limit. One of the primary objectives is to extend the provisions of the 2017 Tax Cuts and Jobs Act (TCJA) and eliminate taxes on tips, overtime pay, and retirees’ social security. Failure to extend the TCJA before it expires at the end of the year could result in a significant tax increase for millions of families.
House Republicans are facing challenges in reconciling differences on clean energy and Medicaid as they work towards finding at least $1.5 trillion in spending cuts to offset the cost of Trump’s tax policies. Treasury Secretary Scott Bessent has emphasized the importance of completing the tax portion of the bill by the Fourth of July, alongside trade and deregulation.
While House Speaker Mike Johnson initially aimed to pass the bill by Memorial Day, the timeline has since been adjusted to accommodate the complex legislative process. Lawmakers are utilizing the budget reconciliation process to advance Trump’s agenda, allowing them to bypass the opposition and focus on spending, taxes, and debt-related legislation.
To meet the proposed deadline, House committees are actively working to draft policy aligned with the spending cuts outlined in the budget frameworks passed earlier this year. However, disagreements persist, particularly regarding Medicaid cuts and the fate of green energy tax subsidies. Negotiations are ongoing as Republicans strive to strike a balance between fiscal responsibility and supporting key healthcare and energy programs.
Senate Majority Leader John Thune has indicated openness to the Independence Day goal, recognizing the intricate nature of the reconciliation process. With significant work already accomplished, lawmakers are committed to finalizing the legislation and sending it to Trump’s desk for approval.
In conclusion, the push to pass a comprehensive bill reflecting Trump’s priorities by the Fourth of July underscores the GOP’s commitment to advancing conservative policies and shaping the nation’s future. As negotiations continue and deadlines loom, Republicans are working diligently to deliver on their promises and secure a legislative victory for the president.
