Trump tax-cut plan returns to U.S. House, Republicans divided on bill

CTV News

3 days ago

The Senate side of the Capitol is seen in Washington, early Monday, June 30, 2025, as Republicans plan to begin a final push to advance President Donald Trump's big tax breaks and spending cuts package. (AP Photo/J. Scott Applewhite)
The debate within U.S. President Donald Trump's Republican Party over a massive tax-cut and spending bill returns to the House of Representatives on Wednesday, as party leaders try to overcome internal divisions and meet a self-imposed July 4 deadline.
The Senate passed the legislation, which nonpartisan analysts say will add $3.3 trillion to the nation's debt over the next decade, by the narrowest possible margin on Tuesday after intense debate on the bill's hefty price tag and substantial cuts to the Medicaid health care program.
Similar divides exist in the House, which Republicans control by a 220-212 margin and where a fractious caucus has regularly bucked its leadership in recent years -- though members have so far not rejected major Trump priorities.
'The House will work quickly to pass the One Big Beautiful Bill that enacts President Trump's full America First agenda by the Fourth of July,' House Speaker Mike Johnson said in a statement on Tuesday, citing the bill's extension of Trump's 2017 individual tax cuts and increased funding for the military and immigration enforcement.
House Republican leaders set an initial procedural vote on the bill for 9 a.m. ET (1300 GMT).
Some of the loudest Republican objections against it come from party hardliners angry that it does not sufficiently cut spending and a $5 trillion increase in the nation's debt ceiling, which lawmakers must address in the coming months or risk a devastating default on the nation's $36.2 trillion debt.
'What the Senate did was unconscionable,' said Representative Ralph Norman, a South Carolina Republican, one of several fiscal hawks who spoke out against the Senate bill's higher price tag, accusing the Senate of handing out 'goodie bags' of spending to satisfy holdouts.
Norman said he would vote against advancing the bill on Wednesday.
Democrats are united in opposition to the bill, saying that its tax breaks disproportionately benefit the wealthy, while cutting services that lower- and middle-income Americans rely on. The nonpartisan Congressional Budget Office estimated that almost 12 million people could lose health insurance as a result of the bill.
'This is the largest assault on American healthcare in history,' Democratic House Minority Leader Hakeem Jeffries told reporters on Tuesday, pledging that his party will use 'all procedural and legislative options' to try to stop - or delay - passage.
The version of the bill passed by the Senate on Tuesday would add more to the debt than the version first passed by the House in May and also includes more than $900 million in cuts to the Medicaid program for low-income Americans.
Those cuts also raised concerns among some House Republicans.
'I will not support a final bill that eliminates vital funding our hospitals rely on,' Representative David Valadao of California said before Senate passage.
Timing difficulties
But some House Republicans worried about social safety-net cuts could find solace in the Senate's last-minute decision to set aside more money for rural hospitals, funding that Representative Nick Langworthy, a New York Republican, called 'a lifeline that will be very helpful to districts like mine.'
Any changes made by the House would require another Senate vote, making it all but impossible to meet the July 4 deadline.
Further complicating the timeline, a wave of storms in the Washington area on Tuesday night canceled flights, and some lawmakers from both parties detailed on social media plans to drive from their home districts to the Capitol for Wednesday's expected vote.
A senior White House official said on Tuesday that Trump is expected to be 'deeply involved' in the whip operation this week.
Trump for weeks has pushed for passage ahead of the July 4 Independence Day holiday, though he has also in recent days softened that deadline, describing it as less than critical.
Any public opposition to the bill risks irking Trump, as was the case when the president slammed Senator Thom Tillis, a North Carolina Republican who announced his retirement after coming out in opposition to the bill.
Another former Trump ally, the world's richest person Elon Musk, this week resumed an active campaign against the bill over social media, blasting its deficit-building effects. That has reignited a feud between Trump and Musk.
(Reporting by Bo Erickson, Rick Cowan, and Nandita Bose; Editing by Scott Malone and Cynthia Osterman)