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

  • House Republicans failed to pass a tax and spending package through the Budget Committee on Friday, with the vote ending 16-21 in Washington.
  • The failure resulted from opposition by a faction of conservative Republicans demanding deeper Medicaid and green energy tax credit cuts, combined with unified Democratic resistance.
  • The bill aims to increase the current $10,000 limit on deductions for state and local taxes to $30,000 for joint filers earning up to $400,000, maintains the tax cuts enacted in 2017, introduces additional tax breaks, and plans to reduce spending by more than $1 trillion in healthcare and nutrition assistance programs.
  • An analysis by the Congressional Budget Office projects that the proposal would lead to at least 7.6 million fewer individuals insured and reduce monthly SNAP participation by around 3 million, while also increasing the federal debt.
  • The vote setback delays House Speaker Mike Johnson's goal to approve the package next week, prompting ongoing negotiations among Republicans to revise the bill amid internal divisions and a looming self-imposed deadline.
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Fortune broke the news in New York, United States on Wednesday, May 14, 2025.
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