**House GOP's Plan Falters: Key Conservatives and Democrats Block Major Tax and Spending Bill**

House Republicans faced a significant obstacle on Friday as their major tax breaks and spending cuts package failed to pass the Budget Committee. A small group of conservative members joined forces with Democrats, resulting in a 16-21 vote that derailed the bill’s progress. These hard-right lawmakers demand deeper cuts to Medicaid and the Biden-era green energy tax incentives before they lend their support to what President Trump has dubbed the "beautiful" bill. They cautioned that without these changes, the tax cuts alone would exacerbate the nation’s $36 trillion debt.

House Speaker Mike Johnson’s efforts to push the bill forward have hit this critical roadblock. Conservative holdout lawmakers pledged to stay through the weekend in an attempt to negotiate changes, in anticipation of President Trump’s return to Washington from the Middle East. Representative Chip Roy of Texas voiced the hardliners' stance, stating, "Something needs to change or you're not going to get my support."

Named the One Big Beautiful Bill Act, the 1,116-page legislation hangs in the balance. Conservatives are pushing for more significant cuts to Medicaid and various other programs to counterbalance the costs of the tax breaks. Simultaneously, lawmakers from high-tax states like New York insist on an expanded state and local tax (SALT) deduction for their constituents, which could inflate the bill’s total cost. The bill currently proposes tripling the SALT deduction cap from $10,000 to $30,000 for joint filers earning up to $400,000 annually.

The failure in the Budget Committee underscores the slim majority Republicans hold in the House, where cohesive support is crucial. Four Republican conservatives initially opposed the package—Reps. Chip Roy (Texas), Ralph Norman (South Carolina), Josh Brecheen (Oklahoma), and Andrew Clyde (Georgia)—with Rep. Lloyd Smucker (Pennsylvania) joining as a fifth 'no' vote.

Members of the conservative Freedom Caucus demand immediate work requirements for Medicaid recipients, rather than the bill’s proposed start date of January 1, 2029. Rep. Roy criticized the bill for prioritizing immediate tax cuts and spending while delaying savings: "We are writing checks we cannot cash, and our children are going to pay the price."

New York lawmakers, led by Rep. Nick LaLota, propose a SALT deduction of $62,000 for single filers and $124,000 for joint filers, far exceeding the bill’s current provisions. This standoff between conservatives and New Yorkers continues as Speaker Johnson aims to pass the package by Memorial Day.

The bill extends existing income tax cuts from Trump’s first term and introduces new ones, including tax exemptions for tips, overtime pay, and certain auto loans. Middle-income earners would see increased tax breaks, such as a standard deduction rise to $32,000 for joint filers and a temporary child tax credit boost to $2,500. Additionally, $350 billion is allocated for Trump’s deportation agenda and bolstering the Pentagon.

The package proposes over $1 trillion in cuts to healthcare and food assistance programs to cover more than $5 million in lost revenue, imposing new work conditions on eligible adults. The Congressional Budget Office estimates these measures could leave at least 7.6 million individuals without health insurance and reduce monthly SNAP benefits for about 3 million people.

Democrats criticized the bill, highlighting the widespread negative impacts. Rep. Pramila Jayapal of Washington called the legislation "one big, beautiful betrayal," and Rep. Morgan McGarvey noted that it would result in hungry children, closures of nursing homes and hospitals, and millions losing their health insurance.