In yet another blow to Congressional Republicans' efforts to pass President Donald Trump's "big, beautiful bill" on tax cuts, energy deregulation, and border security, enough lawmakers in the House have drawn a line in the sand that could force Republicans' to cut $500 billion worth of their planned tax cuts from the bill, Politico reported on Wednesday.
"Nothing is final, and Republicans are still hoping for a full $4.5 trillion tax cut, but they’re making contingency plans as colleagues struggle to find agreement on how to cut Medicaid and a slew of other government initiatives," reported Brian Faler and Meredith Lee Hill. "Under Republicans’ budget, the amount of their tax cuts is contingent on them simultaneously cutting spending. They get $4.5 trillion for tax cuts if they reduce expenditures by $2 trillion. If they fall short of $2 trillion, their tax cut allowance is reduced accordingly. If they cut more, the tax cut could also grow."
The method of how to cut Medicaid has been a massive point of contention for Republicans ever since they passed a budget framework directing $880 billion in savings from health and food aid.
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While they have insisted they don't plan any cuts for Medicaid, practically all their proposed methods of extracting savings from the program would amount to a cut, and have mostly been ruled out by this point as various Republicans whose constituents rely on Medicaid have balked.
It's far from the only issue that has to be worked out in the bill, the report noted: "blue-state Republicans hoping for a much-expanded deduction for state and local taxes are set to plead their case this afternoon at a closed-door lunch with the tax panel."
At the same time, another contingent of Republicans from vulnerable districts have told House Speaker Mike Johnson (R-LA) they will not support cuts to funding for reproductive health care provider Planned Parenthood, which for many Republicans had not just been a potential source of savings but ideological red meat to sell the bill to supporters.