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

  • House Republicans failed on Friday to pass their tax breaks and spending cuts package through the Budget Committee in Washington, losing 16-21 votes.
  • The failure stemmed from hard-right lawmakers demanding steeper Medicaid and Biden-era green energy tax break cuts before supporting President Trump's budget bill.
  • The 1,116-page bill aims to increase the cap on deductions for state and local taxes to $30,000 for joint filers, significantly reduce funding for health care and food assistance by over $1 trillion, and introduce work requirements for certain adults.
  • The Congressional Budget Office projects that the proposed changes would result in at least 7.6 million individuals losing health insurance coverage and a reduction of about 3 million monthly SNAP beneficiaries; while Republicans argue the plan will fund itself through economic growth, many independent analysts remain doubtful.
  • The failed vote delays House Speaker Mike Johnson’s goal to approve the package next week as the Budget Committee will reconvene Sunday to renegotiate the bill’s provisions.
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Fortune broke the news in New York, United States on Wednesday, May 14, 2025.
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