UNITED STATES – MAY 18: Speaker of the House Mike Johnson, R-La., arriving for a Sunday night meeting with Republican members of the House Budget Committee.
Tom Williams/CQ-Roll Call, Inc via Getty Images
The House Budget Committee promised to revisit the stalled tax bill—by posting a notice that the committee would reconvene a hearing on the matter on Sunday, May 18, at 10 p.m. ET. That’s not a typo.
Screenshot of House Reconvening Notice
Kelly Phillips Erb
After an earlier vote didn’t advance the bill on Friday, Representatives said they would resume talks on Monday during business hours. That changed over the weekend after criticisms lobbed at fiscally conservative Republicans who had initially opposed the bill because it would contribute significantly to the deficit switched their votes to “present.”
On Friday, five Republicans joined Democrats in voting no on the bill: Chip Roy (Texas), Ralph Norman (S.C.), Josh Brecheen (Okla.), Andrew Clyde (Ga.) and Lloyd Smucker (Pa.). The vote was 16 yes votes to 21 no votes.
Four of the Republicans who voted no cited the cost: the massive tax bill is expected to add $4 trillion to the deficit. That number includes revenue raisers from a handful of new taxes and significant benefit cuts. But some on the Hill say that the cuts weren’t deep enough. (Smucker first voted yes on the bill, then changed his vote so that, under House rules, he could call for the bill to be reconsidered later.)
The White House appeared to grow frustrated with the holdouts, with President Trump posting on Truth Social, “We don’t need ‘GRANDSTANDERS’ in the Republican Party. STOP TALKING, AND GET IT DONE!”
Roy, who has a record of voting with conservatives 98% of the time, was one of those who had initially opposed the bill’s advancement. Specifically, Roy was unhappy with the timing of the implementation of new work requirements for Medicaid—those are not slated to take place until after Trump leaves office. Roy also expressed irritation that the bill would allow “almost half of the green new scam subsidies continuing.”
In a post on X (formerly Twitter) following the vote, Roy indicated that he had negotiated commitments on the bill, including on Medicaid and clean energy. However, the bill does not currently reflect any of the changes. Roy said that he and three of his colleagues changed their votes to “present” out of “respect for the Republican Conference and the President to move the bill forward.” The vote to advance the bill was 17 to 16.
Roy also cited concerns about the budget, “in light of the fact our bond rating was dropped yet again due to historic fiscal mismanagement by both parties.” Roy was referring to a downgrade from Moody’s. On Friday, Moody’s lowered the U.S. credit score from a Aaa (prime) to Aa1 (high grade). Moody noting, “Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat.” The ratings agency stated: “In turn, persistent, large fiscal deficits will drive the government’s debt and interest burden higher. The US’ fiscal performance is likely to deteriorate relative to its own past and compared to other highly-rated sovereigns.”
The national debt is $36.2 trillion, up nearly $26 trillion since 2001. According to the Treasury Department, tax cuts, stimulus packages, increased government spending, and lowered tax revenue “generally account for sharp rises in the national debt.”
The bill will next be referred to the Rules Committee, one of the most powerful committees on the Hill. When a bill moves out of committee, it is often considered in the Rules Committee, which controls how the measure will move to and be debated on the House floor. Roy and Norman both serve on that committee.
There’s no guarantee that the measure will pass once it hits the floor. In addition to Democratic opposition to Medicaid, food stamps, and other spending, a group of Republicans from high-tax states like New York have threatened not to support the bill unless changes are made to the cap on deductions for state and local taxes (SALT). The Tax Cuts and Jobs Act (TCJA), the sweeping tax cuts Republicans passed in the first year of Trump’s first term, capped the deduction at $10,000, which has been politically unpopular. The current proposal wants to boot it to $30,000 for a married couple filing jointly, while some have suggested it should go even higher. (Before the TCJA, there was no cap, other than the Pease limitations, which generally limits deductions for high-income taxpayers.) According to the Tax Foundation, property taxes paid as a percentage of owner-occupied housing are highest in Illinois, New Jersey, Connecticut, Nebraska, Vermont, New Hampshire, Texas, Ohio, New York, and Wisconsin.
The bill isn’t expected to sail through the House and could face stiff opposition in the Senate, where Republicans hold a three-seat majority. One of those—Rand Paul (Ky.)—has already indicated that he won’t support a bill that increases the deficit.