Speaker Mike Johnson is under pressure to negotiate with various factions within his conference as the deadline for advancing President Trump’s agenda through the House looms. The megabill, which is intended to advance the administration’s domestic policy, faces significant hurdles as competing groups—ranging from the SALT-ies and Hard-Liners to the Clean Energy Mods and Medicaid Mods—push for differing provisions, creating a complex mix of priorities. Key issues include the state-and-local-tax deduction, Medicaid work requirements, and clean energy credits, all of which are expected to be at the center of upcoming discussions.
The SALT-ies, a group of Republican members from blue states, are at an impasse with GOP leadership over the state-and-local-tax deduction. House Ways and Means Chair Jason Smith (R-Mo.) has signaled that there may only be about $50 billion to work with, putting Johnson in a difficult position to satisfy the largely blue-state members who are pushing to increase the $30,000 cap currently in the bill. Rep. Nicole Malliotakis (R-N.Y.), a SALT and Ways and Means member, warned that the window for a deal is closing, and that the lower appetite for compromise among her colleagues is growing as the deadline approaches.
Hard-Liners, on the other hand, are furious that the current language in the GOP megabill does not begin work requirements for Medicaid until 2,029. This reflects a broader strategy to distribute immediate benefits and delay the impact of potential consequences. Johnson has yet to comment directly on their demands to start the work requirements earlier, but he has indicated that there will be ongoing discussions. The speaker will meet with a cross-section of these two groups in his office.
Meanwhile, the Clean Energy Mods are pushing to undo a rollback of Inflation Reduction Act clean energy credits. Led by Rep. Jen Kiggans (R-Va.), the Republicans warned in a statement that an abrupt stop of the tax credits, implementation of new restrictions, and changes to provisions that help fund projects could smother investments in new energy technologies. However, they’re facing opposition from hard-liners who want even greater rollbacks of clean energy credits, with some advocating a complete repeal.
The Medicaid Mods, a group of Republican centrists not on Energy and Commerce, were surprised by some of the Medicaid provisions included in the committee-passed bill. One area of concern is over a requirement for some Medicaid beneficiaries with incomes at or just above the poverty line to start paying for a portion of their care. GOP Rep. Ryan Mackenzie (Pa.) expressed concern over this new element, which had not been discussed with them prior. The group plans to meet with Johnson on Thursday morning.
As the megabill continues to move through the legislative process, the House GOP leaders will need to make significant progress in upcoming meetings. Various discussions are scheduled for Thursday, as well as a conference-wide reconciliation meeting at 2:30 p.m. The megabill then heads to the Budget Committee on Friday and the Rules Committee next week.
Other developments include the approval of legislation to cut up to $300 billion in food aid spending to fund the Republicans’ domestic policy megabill and some farm programs, though Chair John Boozman (R-Ark.) hinted that the SNAP cost-share plan may not gain traction in the Senate. Meanwhile, the Senate is unlikely to begin considering landmark cryptocurrency legislation again this week, though the door is left open for floor action next week. The Kids Online Safety Act has been reintroduced after efforts to kill the legislation last year, with Johnson promising this Congress will pass legislation to make online spaces safer for kids.