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House Budget Committee rejects Trump agenda bill in major setback for GOP leaders

  • House Republicans failed to pass President Donald Trump's tax breaks and spending cuts package through the Budget Committee on May 16, 2025, in Washington D.C.
  • The failure occurred after a coalition of conservatives and all Democrats opposed the bill due to demands for steeper spending cuts, especially to Medicaid and green energy tax breaks.
  • The package includes nearly $800 billion in cuts to Medicaid over ten years, introduces work requirements, raises the cap on deductions for state and local taxes from $10,000 to $30,000 for joint filers earning up to $400,000 annually, and allocates more than $46 billion for border security along with an additional $150 billion for defense spending.
  • The committee vote failed 16-21, stalling House Speaker Mike Johnson’s plan to approve the bill next week despite Trump urging party unity and conservatives insisting on changes.
  • The defeat suggests continued budget conflicts ahead, with analysts doubting the package’s ability to reduce the nation’s $36 trillion debt, while millions could lose health and food assistance.
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Fortune broke the news in New York, United States on Wednesday, May 14, 2025.
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