Republicans push ahead on Trump tax, spending plans, despite intra-party dissent

Republicans in the US Congress advanced major elements of President Donald Trump's budget package on Wednesday, as key committees approved tax cuts that would add trillions of dollars to the US debt, while cutting spending on healthcare for the poor and disabled.

With Democrats boycotting this top priority of Trump's, Republicans relied on their majorities in the tax-writing House of Representatives Ways and Means Committee and the Energy and Commerce panel overseeing Medicaid and other healthcare programs to advance the controversial package of bills.

Flexing their majority muscles, Republicans defeated all of the Democrats' amendments to the Republican-written bill.

It amounts to an initial victory for Republicans, who still have many hurdles to clear before they can get the sprawling package of tax cuts, spending hikes and safety-net reductions to Trump's desk to sign into law.

Trump's "Big Beautiful Bill" would add trillions of dollars to the nation's debt load, which at $36.2 trillion now equals 127% of GDP. The package calls for $4 trillion in additional borrowing, though the total cost is uncertain at this point.

House Speaker Mike Johnson, a Republican, told reporters his party was on track to pass the massive legislation before the May 26 Memorial Day holiday. But he still faced dissent from within his own party.

Moderate Republican lawmakers from Democratic-led coastal states including New York, New Jersey and California -- critical to the party's narrow 220-213 majority -- say the bill imposes too low a limit on how much state and local taxes can be deducted from constituents' federal income taxes.

"As this stands right now, I am a 'no,' and so they're going to need to come up with a solution here and quickly if they want to stay on the schedule," said Republican Representative Mike Lawler of New York and an advocate of the so-called SALT deduction.

Party hardliners, meanwhile, are demanding deeper spending cuts.

"I'm trying to get the math in order to get this country back on track, financially. And it just hasn't happened,” said hardline Republican Ralph Norman of South Carolina.

Following a work-session that spanned more than 26 hours, the Energy and Commerce Committee voted along party lines on Republicans' plan to tighten eligibility for the Medicaid health plan, which covers 71 million low-income Americans.

PLANNED PARENTHOOD, DRUG FOCUS

The Energy and Commerce panel spent much of Wednesday debating abortion, prescription drug prices and healthcare costs.

Democrats failed in an attempt to remove a provision from the legislation prohibiting Medicaid funding from going to Planned Parenthood, a healthcare provider mainly for low-income women that provides abortion services in states where it is legal.

Federal funding for abortions already is not allowed and Democratic Representative Lizzie Fletcher of Texas argued that the bill would stop Medicaid funding to Planned Parenthood even in states where abortion is illegal and its doctors are providing essential services, such as cancer screenings and pregnancy visits.

Representative Frank Pallone, the senior Democrat on the committee, criticized Republicans for crafting healthcare policy with just cost-savings in mind in order to finance tax cuts for the wealthy -- instead of basing changes on sound health policy.

"Why are we just talking about numbers, how much we're going to save to pay for these tax cuts," Pallone asked.

Republican Representative Buddy Carter argued that the changes to Medicaid would not harm those who legitimately qualify for benefits. "We are trying to stabilize this, to secure it, to save it," he said.

The committee's Medicaid plan would save the federal government $715 billion and kick 7.7 million people off the program, according to the nonpartisan Congressional Budget Office.

A third panel continued working on agriculture and nutrition issues, including a proposal to require some people who receive SNAP food benefits to get a job and shift some costs to states.

It would extend tax cuts passed in Trump's first term that are due to expire at the end of the year, and add new tax breaks for workers, retirees and private schools. To offset some of the cost, the package would cancel green-energy programs passed under Democratic President Joe Biden.

The country's looming debt ceiling deadline this summer is also pushing Republicans to work fast. The package would raise the debt limit by $4 trillion and Treasury Secretary Scott Bessent has urged lawmakers to act by mid-July to avoid a default that would upend the global economy.