House Republicans are mired in deep internal disagreements over a major legislative package meant to fulfill key priorities of President Donald Trump’s second-term policy vision, casting serious doubt on their ability to meet a self-imposed Memorial Day deadline for passage.
The sweeping reconciliation package — dubbed by Trump as his “big, beautiful bill” — has become a battleground for competing GOP factions. From proposed cuts to Medicaid to revising the cap on state and local tax (SALT) deductions, lawmakers remain far from a consensus with just weeks left before recess.
SALT Deduction Divide Grows Deeper
The Republican rift over SALT deductions is widening. Moderates from high-tax states like New York and California are pushing to raise the cap on deductions, a politically sensitive issue back home. But during a Wednesday meeting of the House Ways and Means Committee, it became clear that no unified number had emerged — a sign that negotiations may be regressing.
Rep. Nick LaLota (R-N.Y.) gave a grim metaphorical update: “If negotiations were previously on the 25-yard-line, with 75 yards to go, now they’ve gone back to the 15-yard-line.”
Rep. Young Kim (R-Calif.) suggested a new cap of $62,000, while Rep. Nicole Malliotakis (R-N.Y.) declined to commit to a number, simply stating she would “try to get as high of a number as I can.”
Medicaid Cuts Pit Moderates Against Conservatives
Meanwhile, the Energy and Commerce Committee is facing equally fraught deliberations over Medicaid. Chairman Brett Guthrie (R-Ky.) floated the possibility of including “per capita caps” on the Medicaid expansion population — a sharp contrast to Speaker Mike Johnson’s (R-La.) more cautious tone earlier in the week.
Johnson had said such changes were “likely” to be ruled out, especially reductions to the enhanced federal match rate (FMAP) for expansion states. But when asked about Guthrie’s remarks, Johnson backed off slightly, telling reporters, “At the end of the day, I defer to my chairs.”
That deference reflects a broader lack of unity. Moderate Republicans are wary of any changes that could reduce Medicaid benefits. President Trump has publicly stated that he opposes cutting Medicaid, a position that remains popular with working-class voters and could create political headaches for vulnerable Republicans.
“I’m a no on per capita caps, changes to FMAP, or changes to the provider tax,” said Rep. Mike Lawler (R-N.Y.) following a damning Congressional Budget Office report released Wednesday. The report projected that millions could lose insurance under the GOP’s current Medicaid proposals, with one change alone — caps on expansion funding — potentially leaving 1.5 million more people uninsured by 2034.
Budget Hawks Demand Deeper Cuts
Adding further pressure, hard-line fiscal conservatives led by Rep. Lloyd Smucker (R-Pa.) sent a letter signed by over 30 Republicans demanding adherence to the House’s original budget-cutting framework. The group warned leadership not to water down the spending cuts to match lower targets proposed in the Senate.
“We reaffirm that our support depends, at minimum, on the bill’s strict adherence to the House framework,” the letter stated.
To meet those targets, Energy and Commerce must identify roughly $880 billion in health care savings, part of a larger $1.5 trillion deficit-reduction goal. With more moderate cost-saving measures off the table, conservative lawmakers argue that cuts to Medicaid — including those considered untouchable by moderates — are essential.
“I just don’t think you get the necessary deficit reduction without keeping a lot of things on the Medicaid table,” said Rep. Andy Harris (R-Md.), leader of the House Freedom Caucus.
Deadlines Loom as No Deal Emerges
Despite the mounting challenges, committee chairs insist they are still aiming to finalize their proposals in time for a markup next week — a prerequisite for bringing the package to the House floor before the Memorial Day break. But no official markup sessions have been scheduled, and no clear path to consensus has emerged.
“We’re still working through all the provisions, still discussing,” said Guthrie.
The chaos and conflicting signals leave Republicans at risk of delivering a major political setback not only to themselves, but also to President Trump’s legislative legacy. What was once branded as a signature policy achievement now faces the very real possibility of collapse — or at minimum, a significant delay.
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