House Republicans are advancing a sweeping $5 trillion tax and spending overhaul, branded by some as a “big, beautiful bill”, that includes major tax breaks as well as deep cuts to health care, food aid, and green energy initiatives, sparking fierce resistance from Democrats, civil society groups, and even some members of the GOP itself.
In a slogged overnight hearings, House committees worked through hundreds of amendments, mostly offered by Democrats and largely rejected, as tensions escalated and emotions flared well into early Wednesday morning, as first reported by Broadband Breakfast.
The legislation, closely aligned with President Donald Trump’s 2024 campaign promises, aims to extend and expand the 2017 tax cuts. Among the provisions: eliminating federal taxes on tips, Social Security income, and car loan interest; raising the standard deduction to $32,000 for couples; and increasing the Child Tax Credit. The bill also proposes a potential increase to the cap on state and local tax (SALT) deductions, currently being negotiated.
To offset the cost, a net $3.7 trillion over 10 years, according to the latest estimates, Republicans plan to slash $1.9 trillion from green energy tax credits and implement deep cuts to social safety net programs. These include nearly $800 billion from Medicaid, which serves about 70 million Americans, and $290 billion from SNAP (food stamps), potentially affecting 3 million participants per month.
“People feel very strong because they know they’re losing their health care,” Rep. Frank Pallone said.
Democrats, while lacking the votes to block the bill outright, used procedural tactics to delay progress. Rep. Marc Veasey attempted to let a constituent speak via speakerphone about her Medicaid concerns, but her comments were ruled out of order. Lawmakers also displayed posters reading “Medicaid Matters” throughout the hearings.
The Medicaid cuts could result in at least 7.6 million people losing health insurance. Additional health care changes include imposing new work requirements for Medicaid recipients, set to begin in 2029.
Rep. Gary Palmer defended the move, saying Republicans are trying to make Medicaid “work better” by eliminating waste and inefficiencies. “We’re trying to save Medicaid,” Palmer said.
The package also allocates $350 billion to fund Trump’s mass deportation plans and significantly boosts military spending. Tucked within are provisions allowing the administration to revoke tax-exempt status from organizations it alleges support terrorism, a clause raising alarm among civil society groups who see it as a threat to dissent.
Yet internal GOP dissent remains. Lawmakers from high-tax states like New York and California argue the proposed SALT cap is insufficient. Rep. Nick LaLota said after meeting with leadership that they were “still far from a deal.”
With only a narrow majority in the House and thin margins in the Senate, Mike Johnson has little room for error. Republicans are also under pressure to raise the debt ceiling to avoid a potential default. The bill includes a $4 trillion increase to the current $36 trillion debt limit, enough to fund government operations past the 2026 midterm elections.
Trump, speaking at a forum in Saudi Arabia, called the legislation historic, saying it was “on the verge of passing the largest tax cut and regulation cut in American history.” He added, “If we get that, it will launch our country’s economy like a rocket ship.”
The clock is now ticking. Lawmakers have set a July 4 deadline to finalize the package and send it to Trump’s desk, a high-stakes effort that could redefine the nation’s economic and social priorities for the next decade.
