Bad Day for Big Bill

Key Takeaways
  • President Trump's "Big, Beautiful Bill" suffered a loss in the House Budget Committee, with four conservative GOP members voting with Democrats against it.
  • The loss is a setback rather than a total defeat, however, and efforts are already underway for another push.
  • Getting the bill passed will become increasingly urgent as August approaches, when the federal government is projected to reach its debt limit.

The House Budget Committee met Friday morning to approve President Trump’s “Big, Beautiful Bill,” and it was voted down. Four of the most conservative Republicans in the House, who serve on the House Budget Committee, voted with the Democrats, defeating the bill on a vote of 16 YES to 21 NO.  While the President wrote a note on Truth Social asking for Republicans to all vote YES, the opposition was too strong to follow the President’s appeal.

The vote was not the end of the story.  Before adjourning for the weekend, the Committee leadership took a parliamentary step that will allow for a revote. Leadership has vowed to work over the weekend, with a potential vote on Sunday night. The conservatives didn’t believe that the cuts went far enough for Medicaid recipients, and the work requirement fell short of their requirements by not starting until 2029.  In addition, the NO-voting Republicans wanted non-citizens cut from Medicaid immediately.  Another issue is the extent to which Biden-era energy tax credits are cut back or eliminated, another area where the conservatives wanted to see greater progress.

The Big, Beautiful Bill is the core of President Trump’s 2025 agenda and is also the vehicle the White House and the Congressional Leadership plan to use to increase the debt ceiling.  Last week, Treasury Secretary Bessent notified Congress that the debt limit will likely be reached in August, making an increase essential prior to the traditional August Congressional recess.

The President returns today from his Middle East trip. Having him in town making personal calls will likely help the Republican leadership line up the votes. However, the defeat in Committee was a disappointment for the Leadership and the White House.

Disclosures (show)

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