Trump’s Tax and Spending Bill Faces Weekend Showdown

A critical weekend session in the Senate looms as Republicans try to pass **President Donald Trump**’s extensive tax cut and spending reduction package before the July Fourth deadline. This legislative push faces internal divisions and potential roadblocks as lawmakers grapple with the bill’s complex details.

Deadline Pressure and Internal Divisions

Republicans are working intensely to overcome Democratic opposition. However, they face several setbacks, with internal GOP disagreements proving problematic. Some Republicans are wary of proposed spending cuts impacting Medicaid, food stamps, and other essential programs, all designed to offset the costs of extending significant tax breaks, potentially totaling $3.8 trillion.

The nearly 1,000-page bill was released late Friday. Senators planned to begin debating the legislation, but the schedule remained uncertain. A lengthy debate, including numerous amendment votes, is expected.

…original tweet embed code…

“It’s evolving,”

—John Thune, Senate Majority Leader

Challenges and Setbacks

The weekend session could determine the fate of **Trump**’s major domestic policy plan, with **Trump** pushing Congress to finalize it. The legislation comprises multiple GOP priorities, including making permanent many tax cuts from **Trump**’s first term, set to expire if Congress doesn’t act. The bill would also introduce new tax breaks and allocate $350 billion to national security, including funding for **Trump**’s mass deportation agenda.

Internal dissent exists within the GOP over spending cuts needed to balance tax revenue losses. Some legislators believe the cuts are too extreme, notably those affecting Medicaid recipients. Meanwhile, conservatives want deeper reductions due to concerns about national debt.

**Senator Thom Tillis** has stated his opposition, expressing concerns about the package’s fundamentals. **Senator Ron Johnson**, seeking deeper cuts, has requested to review the final legislative text.

The release of the final draft was delayed as the Senate parliamentarian reviewed it. The goal was to ensure compliance with the “Byrd Rule,” which generally restricts policy matters in budget bills unless they receive 60 votes. This could be difficult in a Senate with a narrow Republican majority and unified Democratic opposition.

Amendments and Revisions

Republicans encountered setbacks after some proposals were deemed non-compliant by the Senate’s rules arbiter. These included plans to shift certain food stamp costs to states and eliminate the Consumer Financial Protection Bureau’s funding. However, Republicans have since revised and reinstated these proposals.

The final version includes revised cuts to a Medicaid provider tax. The changes extended the start date of those cuts and created a $25 billion fund to assist rural hospitals and providers. Several Republicans view the provider tax as a “scam,” advocating for its elimination.

The nonpartisan Congressional Budget Office projects significant consequences under the House-passed bill, with an estimated 10.9 million more people potentially losing healthcare access and at least 3 million fewer qualifying for food aid. The CBO has not yet assessed the Senate draft, which proposes deeper reductions. The CBO has also found that the top income earners would get a tax cut of $12,000 under the House plan, while the poorest Americans would face a $1,600 tax increase. (CBO Report).

Unresolved Issues

A key unresolved issue involves the SALT provision, a deduction for state and local taxes, a high priority for lawmakers from states with high taxes. The current cap is $10,000.

Negotiations between the White House and House Republicans centered on a $40,000 cap, though for five years, not ten. Republican senators are against this. **Representative Nick LaLota** opposes the compromise.

**Senator Chuck Schumer** believes Republicans are trying to pass the bill before the public fully grasps its contents.

The leaders need nearly every lawmaker to vote in support to ensure passage, with **Johnson** and **Thune** working closely with the White House to pressure holdouts.