The House Budget Committee rejected the GOP’s tax and spending package on Friday, marking a significant setback for Republican leadership amid growing internal party divisions. The 21-16 vote, with five Republicans joining all panel Democrats in opposition, underscores the deep ideological rifts within the party over the sprawling legislative proposal, known as the ‘One Big Beautiful Bill Act.’ Despite the rejection, GOP leaders have signaled their determination to continue negotiations over the weekend, aiming to revise the package and bring it to a vote next week before House members leave for a recess.
The rejection of the megabill, which was advanced by the Ways and Means Committee this week and the Energy and Commerce Committee after an all-night markup, signals a major obstacle in fulfilling President Donald Trump’s campaign promises. Key to the package is the inclusion of a Medicaid policy that would strip health care coverage from over 10 million people, a provision that has drawn sharp criticism from fiscal conservatives and hard-line Republicans. Rep. Chip Roy (R-Texas) called the bill ‘profoundly short’ and accused it of having ‘back-loaded savings and front-loaded spending,’ arguing that it fails to address the deficit concerns that have driven the push for legislative action.
With the rejection, GOP leaders have intensified efforts to appease dissident Republicans, including considering earlier enforcement of Medicaid work requirements and immediate revocation of benefits for undocumented immigrants. These changes aim to address the concerns of hard-right members, such as Rep. Tom McClintock (R-Calif.), who emphasized the need for clarity and transparency in the legislative process. However, the delays have raised concerns about the timeline for passage, with some lawmakers warning that the package may face similar delays to the Inflation Reduction Act’s lengthy approval process in 2022.
Meanwhile, the failure to secure the bill’s passage has provided Democrats with a victory, as they capitalize on the GOP’s internal discord while positioning themselves for future legislative action. The rejection also highlights the challenges of uniting the Republican Party under a single agenda, particularly as fiscal conservatives and social conservatives push for more sweeping measures while others prioritize incremental reforms. As GOP leaders continue their efforts to salvage the legislation, the outcome of these negotiations will have significant implications for the future of the party and the broader political landscape in the U.S.