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

  • House Republicans failed to advance a large tax break and spending cut package through the Budget Committee on Friday in Washington, D.C.
  • The failure resulted from a coalition of conservatives and all Democrats opposing the bill due to disagreements over Medicaid cuts and debt concerns.
  • The package plans to extend the 2017 income tax cuts, significantly increase the cap on deductions related to state and local taxes, reduce funding by over $1 trillion for healthcare and nutrition assistance programs, and introduce work requirements for eligible adults.
  • The vote failed 16-21, stalling House Speaker Mike Johnson's effort to approve the bill next week while lawmakers planned to negotiate and reconvene Sunday.
  • The vote setback delays the GOP's agenda amid warnings that the bill could worsen the $36 trillion national debt and reduce insurance coverage for millions.
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Fortune broke the news in New York, United States on Wednesday, May 14, 2025.
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