Donald Trump’s major tax and spending reform proposal — dubbed the “One Big Beautiful Bill” — hit a major roadblock after Republican lawmakers in the House budget committee failed to advance it, revealing sharp divisions within the party.
The 1,116-page bill, proposing $4.9 trillion in tax cuts offset by reductions in Medicaid and green energy programs, was blocked by five Republicans. Four demanded deeper spending cuts to curb the national debt, now at $36 trillion, while another opposed it on procedural grounds.
Key Disputes:
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Medicaid Cuts: A major flashpoint involves proposed work requirements for Medicaid recipients. Hardline conservatives want these enforced immediately, not in 2029 as planned. Others, like Senator Josh Hawley, oppose the cuts entirely, warning of harm to low-income Americans.
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State and Local Tax (SALT) Deductions: Lawmakers from high-tax states (NY, CA, NJ) say the proposed increase of the SALT deduction cap from $10,000 to $30,000 is inadequate. They’re demanding a cap of up to $62,000, threatening to withhold support otherwise.
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Food Assistance (SNAP): The bill proposes states shoulder 5% of SNAP costs and most administrative expenses, while also expanding work requirements to recipients up to age 64. Critics argue it would harm millions who depend on food aid, while Republicans defend it as promoting self-reliance.
Though Trump has publicly urged action, Republicans remain split over the scale and nature of the reforms, stalling momentum for the flagship legislation.
