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House Budget Committee rejects Trump agenda bill in major setback for GOP leaders

  • The House Budget Committee rejected a 1,116-page GOP budget bill on May 16, 2025, blocking major tax and spending changes in Washington, D.C.
  • The bill encountered resistance largely because it paired Trump-supported tax incentives with more than $1 trillion in reductions to Medicaid and nutritional support programs, leading to disagreements within the GOP.
  • Conservative Republicans demanded deeper Medicaid cuts and changes to work requirements, while moderate GOP members worried about the bill's long-term debt impact and Medicaid eligibility starting in 2029.
  • The Congressional Budget Office estimated the bill would reduce health insurance coverage by 7.6 million people and cut about 3 million SNAP recipients monthly, while Trump praised it as “big, beautiful.”
  • The committee’s 21-16 vote defeat delayed House Speaker Mike Johnson’s plan to pass the bill before Memorial Day, highlighting deep GOP divisions and uncertain prospects for the package.
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Fortune broke the news in New York, United States on Wednesday, May 14, 2025.
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