US Election 2024

Winners and losers emerge from House GOP’s narrow budget bill victory

After a long and grueling negotiation process, the House Republicans managed to pass their “Big, Beautiful Bill” (BBB) with a narrow 215-214 vote. This bill had both winners and losers, with some mixed results for various entities involved in the discussions.

One key player in the negotiations was the House Freedom Caucus (HFC), led by Chairman Andy Harris. While Harris voted “present,” two other HFC members, Reps. Warren Davidson and Thomas Massie, voted “nay.” The HFC had initially raised concerns about the bill’s spending levels and the timeline for implementing reduction measures. In the end, they were successful in pushing for Medicaid Work Requirements to take effect by 2027 instead of the original 2029 deadline.

On the other side of the GOP spectrum, moderates and lawmakers from blue states were focused on the State and Local Tax Deduction (SALT). The bill raised the SALT cap to $30,000 for individuals earning up to $400,000, benefiting residents in high-tax states like New York, New Jersey, Illinois, Maryland, and California.

Rep. Michael Lawler of New York, along with other blue-state Republicans, clashed with President Donald Trump over the SALT issue. Lawler and Rep. Nick LaLota of Long Island were able to secure the deduction for their constituents, making them winners in the bill’s passage.

President Trump and House Speaker Mike Johnson were also winners, as they saw some version of their original efforts come to fruition. The preservation of middle- and upper-class tax cuts was a significant win for Trump, while debt-and-deficit hawks were left disappointed.

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Illegal immigration hawks, energy interests, and the American Petroleum Institute were among the other winners in the bill’s passage. The bill allocated funds for the Pentagon, homeland security, and energy policies, which was praised by the API for advancing the nation’s energy future.

However, not everyone was pleased with the bill. Democratic leadership, led by House Minority Leader Hakeem Jeffries, failed to block the bill despite voting as a bloc. One notable critic was House Homeland Security Committee ranking member Bennie Thompson, who called the bill a “shameful grift” on the American public.

Abortion providers, opponents of SALT, and the green energy sector were among the losers in the bill’s passage. The ban on Medicaid disbursements to Planned Parenthood, the preservation of the SALT deduction, and the slashing of green energy tax credits were factors that led to these entities facing potential setbacks.

Overall, the passage of the BBB in the House marked a significant milestone in the ongoing budget discussions. With winners and losers on both sides of the aisle, the bill’s impact will continue to be felt in the coming months.

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