Overview

• House Republicans are advancing a $5 trillion package to extend Trump-era tax cuts, adding new provisions for tipped wages, overtime pay, and auto loan interest deductions.
• The plan offsets costs with $880 billion in Medicaid cuts, including stricter work requirements and eligibility checks, projected to leave 8.6 million more uninsured over a decade.
• Moderate Republicans and conservatives remain divided over Medicaid reforms and the proposed $30,000 SALT deduction cap, threatening the unity needed for passage.
• The Congressional Budget Office warns the package could exceed the $4.5 trillion budget limit set by Republicans, with projected savings falling short of covering costs.
• House Speaker Mike Johnson aims for a May 26 vote in the House, but GOP divisions and unanimous Democratic opposition pose significant hurdles.