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Johnson says House could vote on Trump's tax and spending bill soon
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Johnson says House could vote on Trump's tax and spending bill soon
May 26, 2025 12:10 PM

WASHINGTON (Reuters) -U.S. House of Representatives Speaker Mike Johnson said he would bring President Donald Trump's massive tax and spending bill for a vote as soon as Wednesday night, in a sign that he may have quelled objections from fellow Republicans who have imperiled its passage.

After meeting with Trump and the holdouts at the White House, Johnson told reporters the House would vote on the bill on Wednesday night or Thursday.

"I believe we are going to land this airplane," Johnson said.

House Republicans released revisions to the bill meant to address some of their caucus's complaints. The changes included imposing work requirements for the Medicaid program at the end of 2026, two years earlier than previously planned, penalizing states that expand Medicaid in the future and raising the amount of state and local taxes that can be deducted from federal income taxes.

It was not immediately clear whether those revisions would persuade the handful of recalcitrant Republicans who had opposed the bill on the basis of wanting deeper spending cuts.

The bill would extend Trump's signature 2017 tax cuts, create new tax breaks for tipped income and auto loans, end many green-energy subsidies and boost spending on the military and immigration enforcement.

The nonpartisan Congressional Budget Office estimates the bill will add $3.8 trillion to the U.S.'s $36.2 trillion in debt over the next decade. 

Credit rating firm Moody's last week stripped the U.S. government of its top-tier credit rating, citing the nation's growing debt. U.S. stocks fell on Wednesday amid investor concern about the mounting debt.

Republican lawmakers have said they do not believe the nonpartisan analysts' projections and accused Moody's of deliberately timing its Friday afternoon downgrade to try to block the bill's passage.

The bill would raise the nation's debt ceiling by $4 trillion. Lawmakers must act to address that limit by this summer or risk triggering a devastating default.

Success in the House would set the stage for weeks of debate in the Senate, which is expected to make significant changes to the bill.

Trump visited Republican lawmakers at the Capitol on Tuesday to try to persuade holdouts to get in line on what he calls a "big, beautiful bill," but failed to sway the wide array of lawmakers who object to specific features.

LITTLE WIGGLE ROOM

Johnson has little room for error, as his party holds a narrow 220-212 majority and a handful of "no" votes from his side could scuttle the bill, which Democrats say favors the wealthy and cuts needed social programs.

"We've got the majority. We've got the president in there to fix this country. And we have an opportunity of a generation, a lifetime," said Representative Brian Babin, a Texas Republican. "I'm just hoping and praying that we get the thing passed."

The Medicaid health program for low-income households has proven to be a major sticking point, with fiscal hawks pushing for cuts to partly offset the cost of the bill's tax components, which moderate Republicans say would hurt voters whose support they will need in the 2026 midterm congressional elections.

"Deficits aside, this bill is ugly because it is ultimately a betrayal of the contract that we have made with the American people, and especially to our babies and to our working people," Democratic Representative Gwen Moore said.

The bill also faces objections from a handful of centrist Republican lawmakers from high-tax states, including New York and California, who are pushing to expand a proposed $30,000 cap on deductions for state and local taxes.

The revisions to the bill unveiled on Wednesday would also rename a new class of proposed savings accounts for children, first proposed as "MAGA accounts," in reference to Trump's "Make America Great Again" slogan, to "Trump accounts."

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