The Republican Party’s push to finalize a federal budget hit a wall this week, as intra-party divisions continue to stall negotiations just days ahead of a self-imposed deadline. President Donald Trump made a high-profile visit to Capitol Hill yesterday in a last-ditch effort to unify GOP lawmakers behind what he has branded a “Big, Beautiful Bill.” However, the trip did little to close the gap between competing factions within the party.
Spending Cuts: In a closed-door meeting with House Republicans, Trump delivered a blunt message aimed squarely at conservative skeptics who have criticized the bill’s spending levels. “Don’t f*ck around with Medicaid,” the president reportedly said, making it clear that key entitlement programs are off-limits for cuts.
- Outside the meeting, Trump reiterated his position to reporters, saying, “The only thing we’re cutting is waste, fraud and abuse. We’re not changing Medicaid, and we’re not changing Medicare, and we’re not changing Social Security.”
- One of the most vocal critics, Congressman Chip Roy (R-TX), a member of the House Freedom Caucus, argued the bill lacks sufficient near-term spending restraint. “We have to deliver on extending the tax cuts, but also getting the spending cuts necessary to get deficits down,” Roy said. “Too much of the current bill has the spending savings in the out years. Those need to be moved forward.”
From the Left: Meanwhile, Trump is also facing pressure from another flank within his own party. The so-called “SALT Caucus”—a small group of Republicans from high-tax blue states—has taken issue with the bill’s treatment of the State and Local Tax (SALT) deduction cap. Currently set at $30,000 in the proposal, the cap remains a sticking point for these lawmakers, who argue that it unfairly penalizes their constituents.
- Mike Lawler, the most outspoken member of the SAL Caucus said on Twiiter “While I respect President Trump and understand the importance of passing this legislation, I will not do so at the expense of my district — one of only three held by a Republican that Kamala Harris won in November,”
- The SALT deduction, which allows taxpayers to subtract state and local tax payments from their federal taxable income, is especially significant for wealthier households in states like New York, New Jersey, and California. Trump dismissed these concerns, telling Punchbowl News reporter Jake Sherman, “We don’t want to benefit Democrat governors.”
GOOD NEWS: As of this morning, Punchbowl News is reporting that Speaker Mike Johnson is hoping to hold a rule vote today, followed by a floor vote on the full package as early as this afternoon or evening.
- SALT Caucus: Johnson has discussed lifting the SALT cap from $10,000 to $40,000 for those making $500,000 or less. The income cap and deduction limit would escalate by 1% every year for a decade.
- Freedom Caucus: Johnson has discussed phasing out IRA tax credits for clean-energy investment and production tax credits beginning in 2028. The deal could also include a carveout for nuclear tax credits.
Bottom Line: Republicans expect to have attendance problems beginning Thursday which means if they are going to pass this bill by Memorial day today has to be the day.
