The ongoing struggle over Donald Trump's budget reconciliation bill reveals significant tension between GOP moderates advocating for Medicaid protections and tax relief and House Freedom Caucus members pushing for deeper spending cuts. Speaker Mike Johnson acknowledged that increasing the SALT cap for blue states would necessitate even larger cuts elsewhere, likely to Medicaid. As the negotiations unfold, Republicans may confront a stark choice: maintain crucial Medicaid funding or prioritize tax breaks for wealthier constituents in blue states, illustrating the ideological divides within the party.
Speaker Mike Johnson (R-La.) on Thursday signaled that changes will be made to the party's mega-bill full of President Trump's legislative priorities in order to win support from conservative and moderate Republicans balking at some of its provisions.
If you do more on SALT, you have to find more in savings.
House Freedom Caucus rebels have blocked approval of the 'big, beautiful bill,' presumably on grounds that it adds too much to the budget deficit.
The remedy they will demand could be deeper Medicaid cuts, or paring back tax cuts, with their strong preference being the former, no doubt.
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