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2w ago

House Republicans Advance Tax and Medicaid Cuts, SALT Cap Negotiations Continue

Speaker Mike Johnson works to secure GOP unity as committee-approved tax and Medicaid measures head to the House floor, with SALT deduction disputes unresolved.

Youth volunteers package and organize food at the San Antonio Food Bank on March 27, 2025, in San Antonio, Texas.
Speaker of the House Mike Johnson, R-La., speaks during a news conference at the Capitol, Tuesday, May 6, 2025, in Washington. (AP Photo/Rod Lamkey, Jr.)

Overview

  • The House Ways and Means Committee approved $3.8 trillion in tax cuts, while the Energy and Commerce Committee advanced $880 billion in Medicaid spending reductions after marathon sessions.
  • Speaker Mike Johnson is negotiating with blue-state Republicans over raising the SALT deduction cap to $30,000, but no agreement has been reached, threatening GOP unity.
  • The proposed Medicaid reforms include work requirements for childless adults, co-pays for some beneficiaries, and restrictions on state Medicaid funding practices, which have drawn criticism from both moderates and hardliners.
  • The package, which also includes a $4 trillion debt-limit increase, faces opposition in the Senate, with key Republicans like Sen. Josh Hawley warning against Medicaid benefit cuts.
  • Republicans aim to pass the full reconciliation package by Memorial Day, but internal divisions over SALT deductions and Medicaid provisions pose significant challenges.