After weeks of turmoil and negotiations, House Republicans are inching closer to passing their sweeping domestic-policy package, anchored by a multi-trillion-dollar suite of tax cuts, as Speaker Mike Johnson races to finalize the legislation ahead of the Memorial Day recess.
Following a personal visit to Capitol Hill on Tuesday by President Donald Trump and a flurry of behind-the-scenes bargaining, House GOP leaders believe they are nearing a deal with key factions. The House Rules Committee convened late into the night and early morning hours Wednesday, preparing the reconciliation bill for floor action. The committee had only just concluded its first panel – which included the chairs and ranking members of the Oversight, Budget, Armed Services, and Financial Services Committees – shortly before 4:30 a.m. (and then returning to their coffins for a nap?).
The second panel will include top lawmakers from House Homeland Security, Judiciary, Natural Resources and Transportation and Infrastructure committees, while a third panel will include the chairs and ranking members from Agriculture, Energy and Commerce, Education and the Workforce & Ways and Means.
In total, 537 amendments have been submitted to Rules – none yet from Democrats. Notably, GOP leadership has still not released its long-awaited manager’s amendment, which will incorporate many of the compromises Johnson negotiated to appease internal party divisions, including revisions to SALT, Medicaid work requirements, and clean-energy tax credits, Punchbowl News reports.
Despite the complexity, Johnson is moving aggressively. He hopes to pass a rule and hold a full floor vote as soon as today – a schedule driven by his desire to meet the Memorial Day deadline, avoid attendance issues later in the week, and capitalize on rare momentum.
The legislative sprint follows a dramatic shift in tone after Trump met Tuesday morning with warring GOP factions and urged unity. Several Republican holdouts publicly maintained opposition afterward, but six senior Republicans involved in the talks said many were privately seeking off-ramps – policy concessions that would let them support the bill while still claiming political victories.
As Just the News notes, a final push will require some conservatives to make a leap of faith, like Rep. August Pfluger (R-TX), the chairman of the House Republican Study Committee, is taking.
“Look as a conservative, I want to save as much money as I can, and we have pushed for that in the Republican Study Committee,” he told the outlet on Tuesday. “But the President was pretty clear that we’ve worked five or six months straight on this, and it is time to get it done.
“That doesn’t mean that a guy like me doesn’t want more. Yes, of course I do. But I also want to govern, which means you don’t get 100% of everything you want every single time. You have to come back and do it again, and we will,” he said during the John Solomon Reports podcast.
Currently included in the Bill…
Trump tax cuts; the largest in history with an average $5,000 decrease per household, and includes ‘No Tax on Tips, Overtime or Social Security.’
Immigration and Border Security:
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“Big, Beautiful Deportations”: funding for 1 million deportations per year
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Completion of the border wall
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Expansion of border personnel – including 10,000 new ICE agents, 5,000 customs officers & 3,000 Border Patrol agents – and $10,000 bonuses for front-line border workers
Medicaid Reform:
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Remove 1.4 million illegal migrants from Medicaid
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Requires work for benefits starting January 2029
Spending Cuts and Fiscal Reform:
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$1.6 trillion in mandatory spending cuts – the largest deficit reduction in nearly 30 years – though the Penn Wharton Budget Model predicts deficits of nearly $3.3 trillion, even when accounting for “positive economic dynamics,” while the Joint Committee on Taxation sees the House reconciliation bill increasing deficits by $3.8 trillion through 2034.
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The White House Council of Economic Advisers projected that the bill would boost GDP by 4.2% to 5.2% in the short run — a staggering level of growth that goes far beyond the mainstream consensus, via Axios.
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Repeals all of Biden’s “Green New Scam” subsidies & ends electric vehicle mandates
Social and Cultural Measures:
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Ends taxpayer-funded sex reassignment procedures for minors
Infrastructure and Modernization:
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Major overhaul of air traffic control systems
Support for Families and Workers:
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Launch of “MAGA Accounts” for newborns (tax-advantaged savings)
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Increased child tax credit, strengthened paid family leave, and repeals IRS gig worker reporting rule (>$600 for Venmo/PayPal)
Support for Farmers:
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$10 billion+ in tax cuts & eliminates death tax to aid generational farm transfers
SALT
One of the most contentious sticking points has been the state and local tax deduction, or SALT. Republicans from high-tax states have demanded relief from the $10,000 cap implemented in 2017. After intense pressure, Johnson offered a revised framework: a $40,000 cap for households earning up to $500,000 (down from a Tuesday proposal for income up to $751,000), with the cap and income threshold escalating 1% annually for ten years. While it falls short of SALT advocates’ hopes – particularly in addressing the so-called marriage penalty – it’s more than many conservatives are comfortable with.
“This is purely a House play and designed to deal with the political challenge they have to get to 218,” Senator John Thune (R-SD), a longtime opponent of expanding SALT, said in an interview Tuesday. “But, I mean, that seems like an incredibly generous offer.”
Thune alluded to possible markups in Senate committees once the legislation arrives from the House. But that’ll be dictated by the House’s timing and what senators think of the proposal.
“I’m a regular order guy. I think you can improve the product,” Thune said. “But obviously, depending on what happens in the House and the timeline we have to work with, getting committees up and going and doing their thing takes a while – and how ready the product is for prime time… There are certain things the Senate wants to have its imprint on.” -Punchbowl
Meanwhile, to placate the House Freedom Caucus, Johnson has proposed accelerating the phase-out of clean-energy tax credits enacted under President Biden’s Inflation Reduction Act. Initially scheduled to begin after 2028, the new plan would start the phase-out in 2028, with a carveout for nuclear credits. Freedom Caucus Chair Andy Harris (R-Md.) signaled progress Tuesday evening, backing off prior demands to slash Medicaid funding and saying talks were “moving in the right direction.”
Still, not all conservatives are satisfied. Reps. Chip Roy (R-TX) and Thomas Massie (R-KY) are expected to vote no. Others are calling for the party to return to a two-bill strategy – a position rejected months ago by both House and Senate GOP leadership.
ROY just came out of confab with Johnson super sad. Says “we will see” if he still a “no” https://t.co/Xh3NuZULr5
— Erik Wasson (@elwasson) May 21, 2025
Despite those tensions, GOP leaders are betting on Trump’s endorsement and the pressure of a looming deadline to push the bill through. “Things don’t get better when you hold it out there,” one senior Republican said. Another added bluntly: “It’s easier to break up with someone from a basement over email. Harder to do it in person, face-to-face.”
Meanwhile, Democrats are preparing their messaging campaign. A memo from the House Majority Fund – a group aligned with Democratic leadership — advised lawmakers to focus on how the GOP legislation would raise prices for everyday Americans while benefiting the wealthy, rather than lean on technical deficit arguments or hyperbolic language.
The Congressional Budget Office (CBO) added fuel to the fire Tuesday night, estimating that the Republican bill would increase the deficit by $2.3 trillion over the next decade. The CBO projected automatic spending cuts to Medicare and other safety-net programs without congressional action and warned that the bill would boost the incomes of the wealthiest 10% of Americans while reducing incomes for the bottom 10%.
Rep. Brendan Boyle (D-PA), ranking member on the Budget Committee, called the legislation “absolutely devastating” for working Americans. Protesters gathered outside the Capitol on Wednesday morning, denouncing proposed cuts to Medicaid.
Despite the fierce opposition, House Republican leaders believe they are close. And if the manager’s amendment is released in time, Johnson may force the issue by calling a floor vote before lawmakers – including members of his own party – have had a full opportunity to digest the final terms.
For Johnson, the choice is strategic: act quickly or risk watching weeks of work fall apart under the weight of delay.
Tyler Durden
Wed, 05/21/2025 – 10:05
