Republicans prepared to hunker down at the Capitol after midnight for one last committee hearing processing changes to the package. The session was expected to push into Wednesday ahead of House floor action.
It’s a make-or-break moment for the president and his party in Congress, who have invested much of their political capital during the crucial first few months of Trump’s return to the White House on this package. If the House Republicans fall in line with the president, overcoming unified Democratic objections, the package would next go to the Senate.
There would also be an increase to the standard income tax deduction, to $32,000 for joint filers, and a boost to the child tax credit to $2,500. There would be an enhanced deduction, of $4,000, for seniors of certain income levels, to help defray taxes on Social Security income.
To cut spending, the package would impose new work requirements for many people who receive health care through Medicaid, with able-bodied adults without dependents needing to fulfill 80 hours a month on a job or in other community activities.
Older Americans up to age 64, rather than 54, who are able-bodied and without dependants would need to work or engage in the community programs for 80 hours a month. Additionally, some parents of children older than 7 years old would need to fulfill the work requirements; under current law, the requirement comes after children are 18.
Republicans said they want to root out waste, fraud and abuse in the federal programs.
The Congressional Budget Office has estimated 8.6 million fewer people would have health insurance with the various changes to Medicaid and the Affordable Care Act. It also said 3 million fewer people each month would have SNAP benefits.
Republicans have been racing to finish up the package by Memorial Day, a deadline imposed by Johnson as he tries to overcome objections within his own ranks.
Conservatives are insisting on quicker, steeper cuts to federal programs to offset the costs of the trillions of dollars in lost tax revenue. GOP leaders have sped up the start date of the Medicaid work requirements from 2029 to 2027.
At the same time, more moderate and centrist lawmakers are wary of the changes to Medicaid that could result in lost health care for their constituents. Others are worried the phaseout of the renewable energy tax breaks will impede businesses using them to invest in green energy projects in many states.
Plus, a core group of lawmakers from New York, California and other high-tax states want a bigger state and local tax deduction, called SALT, for their voters back home.
As it stands, the bill would triple what’s currently a $10,000 cap on the state and local tax deduction, increasing it to $30,000 for joint filers with incomes up to $400,000 a year. They have proposed a deduction of $62,000 for single filers and $124,000 for joint filers.
But it’s not at all clear that Trump, who was brought in to seal the deal, changed minds.
One of the conservative Republicans, Rep. Thomas Massie of Kentucky, said afterward he’s still a no vote.
“We’re still a long ways away,” said Rep. Andy Harris, R-Md., the chair of the House Freedom Caucus.
