US House panel approves Trump tax cut bill, setting up a possible vote on passage this week

US House panel approves Trump tax cut bill, setting up a possible vote on passage this week

The US House Budget Committee has approved President Donald Trump's sweeping tax cut bill, setting the stage for a potential vote on passage later this week. The approval comes despite a significant setback earlier this week when a handful of hard-right lawmakers joined Democrats in voting against the measure, insisting on steeper cuts to Medicaid and green energy tax breaks.

The bill, dubbed the "One Big Beautiful Bill Act" by Trump, extends the 2017 tax cuts and includes new provisions such as no taxes on tips, overtime pay, and some auto loans. It also provides a $350 billion infusion for Trump's deportation agenda and the Pentagon. However, the bill faces opposition from both Democrats and some Republicans who argue that it will lead to millions of Americans losing health coverage and increase future deficits.

The nonpartisan Congressional Budget Office estimates that at least 7.6 million fewer people would have health insurance and about 3 million fewer SNAP recipients per month if the bill passes. The bill also proposes work requirements for certain Medicaid recipients and an extension of the current work requirement for SNAP recipients to include those aged 55-64.

The Budget Committee plans to reconvene on Sunday to try and pass the bill again. If successful, the measure would start a 72-hour waiting period before it could be considered on the floor, allowing for a vote on passage by the end of next week.

Despite the initial setback, House Speaker Mike Johnson remains optimistic about the bill's passage. "I am confident we will get to a good place this weekend and have the votes to pass it out of Committee Sunday evening," he stated following the vote.

References:
[1] https://www.gmanetwork.com/news/topstories/world/946455/republicans-reject-trump-tax-cut-bill-as-moody-s-strips-us-of-aaa-rating/story/
[2] https://www.euronews.com/2025/05/17/conservative-lawmakers-block-trumps-big-beautiful-tax-cut-bill-in-major-setback