Big Beautiful Bill passes major hurdle
Late last night members of the House Budget Committee were summoned back to Washington for a 10 p.m. meeting to vote on advancing President Trump's big, beautiful bill, which passed the panel in a nearly party-line vote. The vote came after 4 Republican members voted against it last Friday. It now faces amendments from the House Rules Committee where two Republican members (Reps. Chip Roy, R-Texas, and Ralph Norman, R-S.C.) still have reservations about the bill. The main concern is that Medicaid work requirements for able-bodied people are not set to kick in until 2029, and conservatives have argued that it was a large window of time for those changes to be undone, among other concerns. The reason for the delay is that certain states supposedly need time to put work requirements into effect. In addition, there are moderates who fear touching Medicaid at all. There is also the issue of state and local tax (SALT) deduction caps, which Republicans from blue states want to maintain and Republicans from red districts see as nothing more than subsidies to high-tax blue states.
Republicans are striving to pass Trump’s agenda via the budget reconciliation process, which allows the party controlling both Congress and the White House to pass vast pieces of legislation while completely sidelining the minority – in this case, Democrats. If they can get the bill over to the Senate, there are Senate Republicans who have already said they want to make certain changes to it. Making it one big bill has made it a very high stakes all or nothing game.
Here is what is in the Bill:
2017 tax cuts
A centerpiece of the legislation is making the 2017 Trump tax cuts permanent — which nonpartisan scorers and think tanks estimate would cost trillions of dollars over the next decade.
The Joint Committee on Taxation (JCT), the official revenue scorer for Congress, estimated earlier this month the overall cost of extending the tax cuts and other measures in the plan would put more than $5 trillion toward the nation’s deficits.
One of the most costly proposals is extending the individual rate reductions in the 2017 law, which is estimated to reduce revenues by more than $2 trillion through 2034.
At the same time, JCT also found the package would put about $1.9 trillion toward reducing the deficit through measures like cuts to renewable energy incentives and international tax enforcement.
Overall, JCT estimated the tax piece would cost $3.7 trillion over the next decade.
SALT
The bill also includes a proposal that would raise the cap for the state and local tax (SALT) deduction, which would allow taxpayers — especially those in higher-tax blue states — to deduct more of their regional taxes from their federal tax bill.
The measure calls for raising the current deduction cap to $30,000 for filers making less than $400,000, with a phasedown for higher incomes.
But changes to the proposal could be possible in the coming days as some moderates in high-tax blue states have pressed for a higher cap.
The cap has been a source of contention in the GOP conference in recent months, as some fiscal hawks have also raised concerns about raising the limit.
‘No tax on tips’
New tax proposals also make the cut in the legislation, including a measure aimed at nixing taxes on tips, as Republicans seek to make good on a key pledge Trump made on the campaign trail last year.
The legislation also includes provisions seeking to do away with taxes on car loan interest and overtime pay, as well as an enhanced deduction for seniors and a suite of other proposals seeking to provide tax relief.
Green energy tax credits
The legislation includes significant cuts to Biden-era tax credits for climate-friendly energy sources — though amid pressure from conservatives, it could go even further.
The bill’s initial text eliminates tax credits for electric vehicles within two years.
It also phases out credits for low-carbon electricity including wind and solar through 2032.
And it institutes new requirements on the credits while they are in effect that would make it so many companies would likely not qualify for them even while they are still technically on the books — making it so any projects that use minerals, components or subcomponents from China would be excluded.
While some in the industry have described these existing cuts as “unworkable,” Rep. Chip Roy (R-Texas) has said that the cuts are still not good enough.
Beyond the green tax credits, the legislation also eliminates other green programs including those that seek to fund climate-friendly projects and reduce air pollution. It also seeks to eliminate Biden-era regulations that are expected to reduce the share of new gas-powered cars sold in the U.S.
Medicaid reforms
The bill includes major reforms to Medicaid estimated to lead to upward of 10 million people losing coverage by 2034.
The bill would require states to impose work requirements on childless adults between 19 and 64 years of age to be eligible for the program and seeks to shorten the open enrollment period for the Affordable Care Act, among a host of other changes.
The proposed Medicaid and health care reforms are key pieces of a significant portion of the bill crafted by the House Energy and Commerce Committee, which was tasked with finding more than $800 billion in savings over a decade.
Republicans are pushing for well more than $1 trillion in cuts to federal spending to ride alongside the tax piece.
SNAP benefits
The bill would tighten eligibility requirements for the Supplemental Nutrition Assistance Program (SNAP) and require states to cover a portion of benefit costs.
While SNAP benefits are currently funded by the federal government, the proposal calls for the federal share of the cost of allotments to go from 100 percent in the next two fiscal years to 95 percent in fiscal 2028 “and each fiscal year thereafter.”
It also includes language to increase the states’ 5 percent share of benefit costs in fiscal 2028 depending on its payment error rate. If the error rate is 6 percent or higher, states would be subject to a sliding scale that could see its share of allotments rise to a range of between 15 percent and 25 percent.
Republicans say the move would give states an incentive to lower their payment error rates for the program, over which lawmakers on both sides have raised alarm . But Democrats have sharply criticized the recent GOP-backed proposal, which they argue could lead to states cutting benefits on their own.
CFPB
The legislation seeks to significantly limit funding for the Consumer Financial Protection Bureau (CFPB), which was established during the Obama administration in the aftermath of the 2008 financial crisis.
Democrats have hailed the CFPB as one of the most successful creations of the 2010 Dodd-Frank Wall Street reform law, praising its aggressive track record of enforcing consumer protection laws. But Republicans have long pressed for measures to rein in the agency, which they have argued has too much power and independence from Congress.
Debt limit
House Republicans are also moving forward with plans to raise the nation’s debt ceiling by $4 trillion as part of the package, as the Treasury warns the government risks defaulting on its more than $36 trillion debt in the coming months.
In a letter earlier this month, Bessent said there is “reasonable probability” the government’s “cash and extraordinary measures will be exhausted in August while Congress is scheduled to be in recess.”
Pell Grant reforms and student loans
The bill would beef up Pell Grants for some students for short-term training programs but would tighten limits for how much students could borrow in federal student loans.
If passed, it would also create the first federal school choice bill by allowing federal tax credits for individuals who donate to groups that provide school choice scholarships to students, making it so individuals in all 50 states could receive a stipend to cover the cost of private school or homeschool expenses.
Funding boosts for Pentagon, deportation plans
The bill also includes increases to Pentagon spending, along with funding boosts to help advance Trump’s immigration and border priorities.
The bill also calls for tens of billions of dollars for Trump’s border wall and funding for detention.
GOP bill includes sweeping tax cuts and Medicaid reforms
If the bill fails, the Trump tax cut will no longer be in effect and Americans will wind up with a massive tax increase.
In other news:
Israel said its forces have expanded ground operations in Gaza. President Trump wants food delivered to the Palestinians. Israel announced that it would allow a basic amount of food into the enclave, weeks after halting aid deliveries.
The President is expected to speak with Vladimir Putin by phone this morning to discuss negotiations in a peace deal with Ukraine.
South Africa’s president, Cyril Ramaphosa, is expected to visit the White House this week, where he will try to improve his deteriorating relationship with the US.
New Jersey’s first statewide transit strike in more than 40 years ended with a deal. Full service resumes tomorrow.
The suspect in a bombing outside a Palm Springs fertility clinic died in the explosion. Authorities described him as having “nihilistic ideations.”
Sean Combs, the rapper and producer known as Diddy, will return to a courtroom in Manhattan this morning. The charges he faces, which include racketeering conspiracy and sex trafficking, could put him in prison for life.
Last & least: former president Biden has prostate cancer.
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"Hundreds of youths descended upon a New Jersey mall Saturday night in a meet-up that reportedly was planned on TikTok and led to a massive brawl.
Seven minors were arrested in the chaotic melee that was spurred by TikTok posts calling for juveniles to meet up at the Menlo Park Mall in Edison that night, according to officials and local reports.
The out-of-control gathering soon grew exponentially, from just 100 people to “over 300 youth” from across the Garden State, shortly after 8 p.m., Edison Mayor Sam Joshi wrote on social media ."
Multiple minors arrested during massive brawl involving 'over 300 youth' in Menlo Park Mall
Has this become a norm?
I remember when it didn't happen.
Maryland Gov. Wes Moore (D) says he will veto a state-approved bill to create a commission to study and recommend reparations for slavery and racial discrimination.
In his veto letter sent Friday, Moore pointed to several commissions the state has already approved, including the Maryland Lynching Truth and Reconciliation Commission and the State Commission to Coordinate the Study, Commemoration, and Impact of the History and Legacy of Slavery in Maryland.
Wes Moore vetoes Maryland Legislature's reparations bill
Very wise move.
I'd says its evidence that he's cleared the 75 IQ bar, but not much more.
Maryland just had to raise taxes and cut services to close a 3 billion dollar budget gap. Besides the absolute immorality and racism of reparations, supporting it with that state economy is not consistent with a functioning brain.
A valid point.
Maryland just had to raise taxes and cut services to close a 3 billion dollar budget gap. Besides the absolute immorality and racism of reparations, supporting it with that state economy is not consistent with a functioning brain.
They like advocating it, but never actually doing it. The problem is they are putting the idea into certain people's heads.
So, how are they going to determine who gets / owes reparations? There were more than blacks held as slaves in the United States. There were quite a few of black slave owners (~ 3,777 thousand according to a study ( ). What is the plan to work that out?
What is the reaction going to be when white people show up for their reparations? There have been countless mixed race families since slavery was abolished. Don't forget, there were far more than just blacks held as slaves.
Where are they going to get the money to pay these reparations? As mentioned in #2.1 , the state is billions in debt. There is the money wasted on illegals under their Sanctuary Shithole policy, but that can be better used to pay down their debt.
Honestly, this appears as another pathetic virtual signaling event.
The idea is to get power into certain hands.
Exactly what it is. I'm also betting that not a single leftist can / will attempt to answer those questions.
At this point you appear to have won the bet.
"The stock market opened with losses Monday as trading began for the first time since the U.S. government suffered a significant hit to its creditworthiness.
The Dow Jones Industrial Average, Nasdaq composite and S&P 500 index all fell after the opening bell Monday, following a weekend of fading stock futures and spiking bond yields driven by U.S. debt concerns.
The Dow was down 217 points after the opening bell, a decline of 0.6 percent. The S&P and Nasdaq were down 1 percent and 1.3 percent, respectively.
Moody’s Ratings shook markets after the Friday closing bell when it downgraded the federal government’s credit rating from triple-A to double-A. It was the first time the agency has ever changed it assessment of U.S. creditworthiness.
The downgrade reflects an increase “in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” the agency said in a Friday release."
Stocks slump after US credit rating downgrade
"Texas once again broke its own employment records in April, surpassed the national employment growth rate again, and added more civilian workers as it has done 58 out of 60 consecutive months, according to newly published federal labor and Texas Workforce Commission data.
No other state in the country is reporting job growth or breaking employment records every month other than Texas, according to the data .
In April, Texas again reached a new record high for having the largest labor force in state history of 15,814,400.
Texas also reached a new record high for having the greatest number of Texans working, including the self-employed, of 15,171,500.
Texas also reached a new record high for total nonfarm jobs last month totaling 14,320,100 after adding 37,700 jobs.
"Texas is the undisputed champion for attracting job-creating business investments in the United States,” Gov. Greg Abbott said. "Businesses invest with confidence in Texas thanks to the Best Business Climate in America and our highly skilled and growing workforce. That is why Texas employers have added more than 2.5 million jobs since I became Governor and why more Texans are working than ever before. But we will not be complacent. We will continue to advance pro-growth economic policies, invest in career training for high-demand occupations, and partner with Texas businesses and innovators to remain the Best State for Business and the best state for good-paying jobs over the next decade and beyond.”
Texas once again broke its own job records | Just The News
An outfit called ZeroHedge was allowed to have a "correspondent" ask a question at the daily White House briefing today, and he used his question to bring up the conspiracy theory that the Clintons had people murdered (over three dozen).
ZeroHedge has one of the worst ratings possible on Media Bias Fact Check. It is so bad they dont even use their usual metric of the arrow at the fringe. Zero Hedge is so bad the arrow doesnt suffice.
MBFC rates them "strong" for the spread of conspiracy theories, and "strong" for pseudoscience.
ZeroHedge had a seat at the table in the White House Briefing Room today.
“ZeroHedge…”
As this administration has zero credibility, zero accountability, and zero integrity in their continued assault on all aspects of traditional American values and institutions.
Considering how horrible both main-stream media and the White House Press Corp has been over the past many years, this is really no worse. I was a little surprised to see that ZeroHedge is owned by ABC Media Inc.
And probably still more accurate than MSNBC with nowhere near the readership, Did they lie about trump not paying taxes like Maddow did? did the lie about Bidens senility? or Hunters laptop? were they absolutely stupid enough to try to promote Harris a a "normal" candidate like so many others did? With the shit outlets from the left like Huffpo or Daily Koos, they are probably far more truthful.
[✘]
“…they are probably far more truthful.”
Conspiracy mongers are not truth seekers.
Yet you all seed from them all the time.
It's amazing with all the lies from the left wing media that anyone of the liberal posters would question the accuracy of another site.
Because those other sites go against the narrative that was used to gaslight the leftists. They don't see it, and when exposed they break down into tantrums and name calling like in #5.3.1 and #5.3.2
As if they are different from the legacy media.
For the record, I hate the one big bill idea. Dumping everything into a single bill makes the bill very large and way too easy to hide crap in it. I still would much rather have the single appropriation bills.
As for taxes, I like most everybody else would prefer to pay as little in taxes as I can. But the national debt IMO is at crisis levels. The recent downgrading of the countries credit rating by Moody's is due to the dept level. It's only going to further impact our way of life, this cannot continue. Unfortunately, I don't see any changes coming on the horizon, there's way too much partisan bullshit and way too many people who will blindly follow the bullshit from their party to make any change.
They are terrible.
The passage of one big bill via reconciliation would be a major home run for Trump. And if they can get it done quick, they are entitled to one more reconciliation bill. That one should deal exclusively with immigration.
They should have included immigration in this bill, because if its stand alone it will probably be ruled as not eligible for reconciliation, like the democrats attempts to use it to legalize Dreamers.
The Republicans really need to repeal a bunch of laws . Instead of blaming Judges, they should repeal the asylum statutes and every other provision democrats are exploiting. Congress is the problem but those sort of votes aren't easy so they just bitch about judges.
Another good point Sean.
The Republicans really need to repeal a bunch of laws . Instead of blaming Judges, they should repeal the asylum statutes and every other provision democrats are exploiting. Congress is the problem but those sort of votes aren't easy so they just bitch about judges.
I agree. The hurdle is that Republicans will have to do every bit of that on their own.