Trump's budget bill is closer to becoming law - here are the remaining sticking points

July 2, 2025

The U.S. House of Representatives must now consider a revised tax and spending bill after it narrowly passed the Senate with Vice President JD Vance's tie-breaking vote. The legislation faces significant resistance from various Republican factions concerned about its impact on the national deficit and cuts to social programs like Medicaid. According to the Congressional Budget Office, the Senate version could add $3.

Who is affected

Low-income Americans who rely on Medicaid (approximately 12 million could lose health insurance by 2034)
Recipients of food subsidies facing potential cuts
Taxpayers affected by changes to the state and local tax (Salt) deduction cap
Americans broadly affected by the projected $3.3 trillion addition to the national deficit
Congressional representatives from poorer districts concerned about impacts on their constituents

What action is being taken

The bill is returning to the House of Representatives for consideration after Senate passage
Speaker Mike Johnson is attempting to schedule a vote as early as Wednesday
House Freedom Caucus members are actively opposing the Senate version of the bill
Congressman Andy Ogles has filed an amendment to replace the Senate version with the original House-approved bill
Some Republican representatives are signaling willingness to compromise despite concerns

Why it matters

The legislation represents President Trump's major tax and spending priorities
The bill could significantly increase the national deficit by $3.3 trillion over ten years
Approximately 12 million Americans could lose health insurance coverage by 2034
Changes to the state and local tax deduction cap ($40,000 for five years, then returning to $10,000) affect taxpayers' financial planning
The bill's passage is testing Republican party unity across different ideological factions

What's next

House Speaker Mike Johnson hopes to hold a vote as early as Wednesday
The House and Senate versions of the bill must be reconciled before July 4th, President Trump's deadline
If passed, the bill will be presented to President Trump to be signed into law

Read full article from source: BBC