Republican leaders’ goal to advance the multi-trillion dollar budget reconciliation bill though the House Wednesday will likely fail as lawmakers continue to debate the mammoth package after 16 hours.
Since 1 a.m., Democrats have pushed back against cuts to SNAP, Medicaid, renewable energy grants, and more, while Republican holdouts, as of 6 p.m., are immovable over spending and other provisions they deem fiscally irresponsible or politically damaging.
The reconciliation bill, compiled from eleven House committee prints fulfilling the Republican budget resolution’s spending and saving instructions, funds President Donald Trump’s tax, border, defense, and energy agenda at the cost of at least $3.3 trillion over the next decade. It also includes a $4 trillion debt ceiling hike.
To help partially offset the cost, committees found $1.5 trillion in savings by reforming Medicaid and SNAP programs, repealing or phasing out renewable energy subsidies from the Inflation Reduction Act, and canceling the Biden administration’s student loan forgiveness program, among other things.
Most of the legislation’s enormous price tag results from the permanent extension of the 2017 Tax Cuts and Jobs Act, including the $15,000 standard deduction, 20% Qualified Business Income (QBI) deduction, and $2,000 child tax credit – although both parents would need a Social Security number to claim it.
Some temporary tax changes lasting until 2028 include nixing taxes on tips and overtime, making the Adoption Tax Credit partially refundable, ending interest on loans for American cars, and increasing tax deductions for eligible seniors by $4,000.
“This is what Republicans do – pay for massive tax breaks for billionaires by going after programs families rely on the most: Medicaid, food assistance, and now Medicare,” U.S> Rep. Brendan Boyle, D-Pa., said. “It’s reckless, dishonest, and deeply harmful to the middle class.”
SNAP reforms include requiring states to cover 5% of their SNAP benefit cost share by fiscal year 2028, with their contribution increasing the higher the state’s payment error rate. The federal government currently funds 100% of SNAP benefits.
The legislation also makes all noncitizens, aside from legal permanent residents ineligible for SNAP, as well as closes “waiver gimmicks” used by states to exempt large numbers of able-bodied beneficiaries from work requirements.
The bill’s Medicaid provisions included changing Medicaid eligibility requirements back to pre-COVID-19 standards; imposing work requirements on most able-bodied adult recipients without dependents; and closing financing loopholes exploited by states.
Democrats accused Republicans of “cruelty” during the hearing, saying millions of people would lose Medicaid coverage.
Adding to the Democratic opposition, fiscal hawks demanded more Medicaid spending reductions and sooner expiration dates for renewable energy subsidies.
Lawmakers including U.S. Rep. Chip Roy, R-Texas, warned they will not vote for a reconciliation package without those provisions added by the Rules committee before the bill hits the House floor.
Another group of Republicans opposed the Medicaid reforms included in the original bill, and some New York Republicans rebelled against what they viewed as inadequate state and local tax (SALT) deduction cap provisions.
House Speaker Mike Johnson, R-La., wanted the bill to pass the House before Thursday. The delay could jeopardize his goal of advancing the legislation before Memorial Day.
