WASHINGTON — Cheers broke out early Wednesday as Republicans on the House Ways and Means Committee signed off on the GOP tax breaks bill after a grueling round-the-clock session that pushed President Donald Trump’s package past overwhelming Democratic opposition.
But there’s still more work to do.
House Speaker Mike Johnson, R-La., also worked past midnight trying to resolve issues with Trump’s plan. Opposition is mounting from various corners of the GOP majority as he tries to muscle the party’s signature package to passage without any votes from Democrats.
On the one hand, the conservative leader of the Freedom Caucus derides the new Medicaid work requirements as a “joke” that do not go far enough at cost-cutting. Meanwhile, a handful of GOP lawmakers from New York and other high-tax states are refusing to support the measure unless changes are made to give deeper state and local tax deductions, called SALT, for their constituents back home.
“To say we have a gulf is an understatement,” said Rep. Chip Roy, R-Texas, a leader of the conservative wing.
Roy said there is “a significant number of us who could not bless this product” in its current form.
Nevertheless, momentum is building toward an end-of-the-week inflection point to stitch together the sprawling package. That means combining hundreds of pages of bill text covering $5 trillion in tax breaks and at least $1.5 trillion in spending reductions on Medicaid, food stamps and green energy programs to deliver Trump’s second-term legislative priority.
Democrats decry the package as a give away to the wealthy at the expense of safety net programs that millions of Americans rely on. But Johnson insists the Republican majority is on track to pass the package by Memorial Day, May 26, sending it to the Senate where Republicans are crafting their own version. With his slim majority, he can only afford a few defections from his ranks.
The nonpartisan Congressional Budget Office said at least 7.6 million fewer people would have health insurance with the changes to Medicaid, and possibly more with additional changes to the Affordable Care Act.
The CBO also gave lawmakers a preliminary analysis showing that 3 million fewer people each month would participate in the SNAP food program under the changes proposed.
More than 70 million Americans rely on Medicaid for health care, and about 40 million use SNAP.
The Republicans are targeting Medicaid and SNAP for a combined $1 trillion in cuts as a way to offset the costs of the tax package, but also to achieve GOP goals of reining in the social safety net programs.
Most of the cost-savings would come from imposing stiffer work requirements for those receiving the health care and food assistance, meaning fewer people would qualify for the aid.
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