On Friday, May 16, the comprehensive tax bill proposed by President Trump did not pass a crucial procedural vote in the committee of the House of Representatives.
Trump’s “Big Beautiful Bill” aims to extend the tax cuts that were passed during his first term and are set to expire at the end of the year. It also includes tax incentives for workers, retirees, and private schools. To offset some of the costs, the plan will cancel the green energy initiatives passed during Democratic President Joe Biden’s tenure.
On Friday, hardline Republicans joined Democrats in obstructing the bill’s passage in the committee, demanding modifications and further spending cuts. Despite Trump openly urging unity among Republicans to support the bill before the committee vote, it faced opposition.
The vote may be a temporary setback for the bill in Congress, as Republicans control the legislature and have not yet rejected any of Trump’s legislative requests. However, this could delay the planned full House vote next week.
Among the 21 Republican members of the committee, five voted against the bill. Opposition members stated they will continue to oppose unless House Speaker Mike Johnson agrees to further cut Medicaid benefits for low-income Americans and completely abolish the Democratic-implemented green energy tax incentives.
As per the current version, the bill is projected to increase the federal government’s debt by trillions of dollars over the next decade.
There is a division within the Republican party, with hardliners seeing this as the best opportunity to cut spending, while moderates warn that further cuts to social security program spending may jeopardize the party’s majority in the House in the 2026 midterm elections.
Committee Chairman Jodey Arrington emphasized the bill’s importance to voters who elected Trump last November and handed full control of Congress to the Republicans.
“They want common-sense policies. They want all of us to put America and the American people first. Let’s give the voters what they voted us to support,” stated the Texas Republican.
Republicans Ralph Norman, Chip Roy, Andrew Clyde, Josh Brecheen, Lloyd Smucker, and all 16 Democratic committee members voted against the bill.
“We are writing checks that we cannot afford, and our children will pay the price. So unless serious reforms are made, I vote ‘no’ on this bill,” Roy from Texas told the committee.
Members expressed hope for reaching an agreement with Johnson over the weekend to modify the bill.
Smucker switched his vote from “yes” to “no”. He mentioned this as a parliamentary strategy to ensure the bill can be reintroduced once an agreement is reached with Johnson. Smucker still hopes for another committee vote on Monday.
The bill extends the tax cuts passed during Trump’s first term. The Joint Committee on Taxation estimates that these cuts will cost $3.72 trillion over a decade. Trump emphasized measures like eliminating tip and overtime taxes, which Republicans believe will boost the middle class but critics argue will mainly benefit the wealthy.
Democrats criticize the bill as a tool for tax cuts for billionaires, citing predictions from nonpartisan congressional researchers. The forecast warns that proposed cuts to Medicaid and federal subsidies provided by the Affordable Care Act could lead to 8.6 million Americans losing health insurance.
The proposed bill will impose work requirements on Medicaid applicants starting in 2029. Hardline Republicans want these requirements to take effect immediately and call for significant cuts in federal government support for the ACA benefits accessible to the middle class through Medicaid, a move opposed by moderates.