Trump’s $4.5 Trillion Tax Bill Stalls in House as GOP Splits

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Published Jul 3, 2025, 03:00 AM

A scheduled U.S. House vote on President Donald Trump’s sweeping tax and spending package was postponed late Wednesday after Republican leaders failed to lock in enough support from their own ranks. Speaker Mike Johnson sent lawmakers back to their offices for more than three hours of negotiations as fiscal conservatives demanded deeper spending cuts and moderates balked at sharp reductions to social programmes.

The 887-page proposal would extend Trump-era tax cuts at a cost of about $4.5 trillion, boost defense outlays and fund a large-scale migrant deportation initiative. Non-partisan analysts estimate the package would add roughly $3.4 trillion to the federal debt over the next decade, largely because of the revenue loss from tax relief. The bill also calls for nearly $1 trillion in Medicaid reductions; the Congressional Budget Office has warned that between 12 million and 17 million people could lose health coverage.

With the House divided 220-212, Johnson can afford at most three Republican defections. Hard-line members of the Freedom Caucus insisted they have enough votes to sink the measure, while moderates pressed for softer cuts to safety-net programmes. Any additional changes would force the legislation back to the Senate, jeopardising Trump’s goal of signing it before the 4 July holiday.

Financial markets reacted to the impasse. The U.S. dollar slipped to its weakest level against the euro since September 2021, extending its year-to-date decline to more than 10% as investors weighed the prospect of higher federal borrowing and prolonged policy uncertainty.

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TRT World

@trtworld

A key House vote on Trump's sweeping tax and spending bill stalls as Republican leaders struggle to unite their party amid backlash over debt and social cuts

Forbes México

@Forbes_Mexico

🇺🇸💸 Republicans in the House of Representatives struggled to pass President Donald Trump's huge tax and spending cut bill.

TRT World

@trtworld

A key House vote on Trump’s sweeping tax and spending bill stalls as Republican leaders struggle to unite their party amid backlash over debt and social cuts