Fiscal hawks send warning as 'big, beautiful bill' clears high-stakes vote: 'We have to do more to deliver'

The "big, beautiful bill" passed a key vote in the House Budget Committee Sunday night after five spending skeptics initially tanked the bill on Friday.

Rather than derail reconciliation a second time, four Republicans voted "present" to advance the bill in a 17-16 vote on Sunday night. On Friday, Republican Reps. Chip Roy of Texas, Ralph Norman of South Carolina, Andrew Clyde of Georgia, Josh Brecheen of Oklahoma, and Lloyd Smucker of Pennsylvania all voted against the bill, resulting in a 16-21 vote.

This time around, Roy, Norman, Clyde, and Brecheen voted "present" to advance the bill, while Smucker voted in favor of it. Notably, Speaker Mike Johnson (R-La.) also met with Norman, Clyde, and Brecheen Sunday morning before the vote.

'This bill is a strong step forward. ... But we have to do more to deliver for the American people.'

Rep. Chip Roy (R-Texas). Photo by Tom Brenner for the Washington Post via Getty Images

"Tonight, after a great deal of work and engagement over the weekend, the Budget Committee advanced a reconciliation bill that lays the foundation for much-needed tax relief, border security, and important spending reductions and reforms," Roy said in a statement. "Importantly, the bill now will move Medicaid work requirements forward and reduces the availability of future subsidies under the green new scam."

Reforms to the Medicaid work requirements were initially set to take effect in 2029, which was not nearly aggressive enough for fiscal hawks like Roy. Johnson reportedly offered the holdouts a 2026 implementation date, which may have swayed many of the holdouts to allow the bill to advance.

"But the bill does not yet meet the moment — leaving almost half of the green new scam subsidies continuing," Roy added. "More, it fails to end the Medicaid money laundering scam and perverse funding structure that provides seven times more federal dollars for each dollar of state spending for the able-bodied relative to the vulnerable."

"This all ultimately increases the likelihood of continuing deficits and non-Obamacare-expansion states like Texas expanding in the future," Roy added. "We can and must do better before we pass the final product."

Alex Wroblewski/Bloomberg via Getty Images

The bill can be amended only in the Rules Committee, which will hold its hearing on Wednesday at 1:00 a.m. House Republican leadership members have also said they will refrain from sending lawmakers home for Memorial Day, which was their original target.

"As such, I joined with three of my colleagues to vote 'present' out of respect for the Republican Conference and the president to move the bill forward," Roy said. "It gives us the opportunity to work together this week to get the job done in light of the fact our bond rating was dropped yet again due to historic fiscal mismanagement by both parties."

"This bill is a strong step forward — and I am proud of Chairman Arrington, the speaker, and my colleagues for the work we did to make progress with the White House," Roy added. "But we have to do more to deliver for the American people."

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The Republicans who could derail reconciliation

Reconciliation talks are beginning to boil over as Republican factions begin attacking the "big, beautiful bill" from all angles.

Up until this week, critics have been relatively quiet about reconciliation while the majority of Republicans embraced the bill, meant to codify President Donald Trump's agenda.

To be clear, the bill does so to an extent. The tax policy is studded with pro-family provisions and includes the incredibly popular "no tax on tips" policy Trump floated during his campaign. There are Medicaid reforms intended to trim the fat and reduce fraud by enforcing work requirements. It even increases the endowment tax on elite universities like Harvard, subjecting the largest endowments to the 21% corporate rate.

But what was supposed to be the centerpiece in the Republican-led Congress has become a focal point for conflict, and Speaker Mike Johnson (R-La.) is doing what he can to plug as many leaks as possible.

'I understand that we have a thin majority, but we should deliver.'

Kent Nishimura/Bloomberg via Getty Images

Some defectors who have been the most difficult to please are the SALT Caucus, a bipartisan bunch pushing to eliminate the $10,000 cap on state and local tax deductions. The blue-state Republicans in the caucus, like Rep. Mike Lawler of New York, have been particularly stubborn during these closed-door negotiations.

During one of their many meetings this week, the members even threw out their colleague Republican Rep. Nicole Malliotakis of New York because she supported the proposed $30,000 cap increase that came out of the Ways and Means Committee. Notably, Malliotakis is the only SALT Caucus member on the committee and therefore the only member with direct influence over tax policy, the very thing the SALT Caucus is trying to change.

Even after holding several meetings throughout the week, Johnson said that he will likely have to work through the weekend to strike a deal with SALT Caucus Republicans.

Bill Clark/CQ-Roll Call Inc. via Getty Images

Predictably, Johnson is also facing an uphill battle against conservatives on Capitol Hill, most notably those on the Budget Committee. The committee is the last to hold a markup on Friday morning, which consists of piecing together all the reconciliation portions that have come out of the 11 House committees' markups.

There are no amendments allowed in the Budget Committee. They will simply vote to advance the bill in its entirety.

The problem is that several Republicans on the committee have already committed to voting against the bill's advancement. There are 21 Republicans and 15 Democrats on the House Budget Committee, meaning Republicans can afford to lose only two votes if they want to get the bill across with a simple majority. Yet among those 21 Republicans, four of them said they are willing to tank the bill.

Republican Rep. Chip Roy of Texas told Blaze News earlier in the week that he couldn't get behind the bill because it doesn't do enough to rein in spending and address fraud in the Medicaid system.

"It has to be amended," Roy told Blaze News. "I'm not going to be able to support it as it's currently drafted, and those amendments are going to need to be, you know, relatively significant."

"I didn't come here to perpetuate a broken system," Roy added. "I understand that we have a thin majority, but we should deliver."

Republican Reps. Ralph Norman of South Carolina, Andrew Clyde of Georgia, and Josh Brecheen of Oklahoma echoed Roy's concerns, saying they too intended to vote against the bill in committee.

Despite these naysayers, leadership is pushing on, with Budget Committee Chairman Jodey Arrington (R-Texas) saying he is confident the bill will pass committee on Friday.

"We did the hard work of setting real targets to restore fiscal sanity, and I’m confident we will have the votes in the Budget Committee tomorrow," Arrington said in a statement. "The Republican conference is working in good faith through a few scoring and policy clarifications. With something this big and beautiful, you’ve got to get it right."

If the bill manages to scrape by in the Budget Committee, it will be headed to the Rules Committee on Monday before eventually being put up for a vote on the floor before the Memorial Day target. Unlike the Budget Committee, the Rules Committee allows amendments, which Johnson, who has a historically narrow House majority, will likely need to make if he wants to get enough votes to pass the bill.

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Big, beautiful bill advances after 18-hour markup marathon while SALT talks go south

The House's big, beautiful bill passed through the Ways and Means Committee Wednesday morning along party lines after an 18-hour overnight markup. While this is a win for House Republicans, additional roadblocks appeared after negotiations with SALT Caucus members took a turn for the worse.

The SALT Caucus' primary advocacy focuses on increasing and even eliminating the federal deduction cap on state and local taxes. The deduction was capped at $10,000 by the Tax Cuts and Jobs Act in 2017. While codifying many of President Donald Trump's campaign promises, like no tax on tips and overtime, the GOP tax bill also raises the SALT cap to $30,000.

'They can sit and negotiate with themselves all they want, but there will be no changes unless I and the committee agree.'

Republican Rep. Nicole Malliotakis of New York, the only SALT Caucus member who sits on Ways and Means, was also the only SALT Caucus member who supported the committee bill.

Photo by Kayla Bartkowski/Getty Images

"These provisions will save individuals and families thousands of dollars annually, and with today's passage out of committee, we are a step closer to delivering relief," Malliotakis said.

However, other SALT Caucus members continue to dig their heels in as the tension ramps up behind closed doors.

During a late-night meeting with leadership and SALT Caucus members, Speaker Mike Johnson (R-La.) attempted to negotiate a deal with Republicans in the SALT Caucus, all of whom represent blue states. The negotiations went south after the members booted Malliotakis from the meeting even though she is the only member with direct influence on tax policy.

“As the only SALT Caucus member on Ways and Means, all I know is they can sit and negotiate with themselves all they want, but there will be no changes unless I and the committee agree," Malliotakis said.

Tierney L. Cross/Bloomberg via Getty Images

Johnson, who initially went into the meeting hoping to strike a deal that night, later said he expects negotiations to continue through the weekend.

"This bill, as written, with a $30,000 cap for those making under $400,000, is just woefully inadequate," Republican Rep. Mike Lawler of New York said Wednesday of the bill. "So no, this does not have my support, it will not have my support, and if this bill comes to the floor for a vote, I will vote no."

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House Republicans to hike up Harvard endowment tax in reconciliation

As reconciliation talks continue, House Ways and Means Chairman Jason Smith revealed that the Republican-led tax bill will hike up Harvard University's endowment tax, in addition to codifying many of President Donald Trump's campaign promises.

During a members-only GOP conference on Capitol Hill, Smith told members that Harvard's current 1.4% endowment tax under the 2017 Tax Cuts and Jobs Act will be bumped up to 21%, according to a source on the call. Harvard continues to be in the hot seat after the Trump administration announced they would be canceling millions of dollars in federal grants, noting that taxpayer funds are a "privilege."

'We're delivering on no tax on tips, no tax on overtime pay for the 80 million workers affected, and achieve tax relief for seniors.'

Photo by Andrew Harnik/Getty Images

In addition to the increased endowment tax on Harvard, the GOP tax bill is also aiming to codify Trump's incredibly popular policies like no tax on tips and no tax on overtime, according to a source on the call. Other line items are focused on boosting pro-family policies, like indexing the child tax credit for inflation and improving adoption tax credits.

"We're delivering on no tax on tips, no tax on overtime pay for the 80 million workers affected, and achieve tax relief for seniors," Smith said during the call.

The legislation is also focused on reinvesting in Americans and includes 100% immediate expensing for new factories in the United States, according to a source on the call. The bill further bolsters American manufacturing by including deductibility of auto loan interest for American-made cars.

Photo by Anna Moneymaker/Getty Images

These provisions mirror Trump's directives to incentivize American manufacturing while renegotiating international trade deals to benefit the United States. In just the last week, Trump has finalized major trade deals with both the United Kingdom and China.

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Speaker Johnson scores major victory as House narrowly passes his budget

House Speaker Mike Johnson (R-La.) managed to flip enough Republican votes to narrowly pass his "big beautiful" reconciliation bill Tuesday night, securing a major victory for the speaker.

Leading up to the late-night vote, Johnson was facing four Republican "no" votes on his reconciliation bill despite having President Donald Trump's endorsement. Given the GOP's historically narrow House majority, Johnson could afford to lose only one vote, which made reeling in Republican defectors a tall task.

Nevertheless, Johnson flipped three of the four Republican holdouts for a final 217-215 vote tally. To nobody's surprise, Republican Rep. Thomas Massie of Kentucky was the lone Republican holdout.

'The House laid the groundwork to fund America First priorities while bending the spending curve down.'

"House Republicans got it done tonight. This vote was a key step in the process to deliver President Trump’s full America First agenda," Johnson said in a statement following the vote. "I’m grateful to my colleagues, especially Chairman Arrington and Chairman Smith. Tomorrow, we roll up our sleeves and get right back at it."

"Big First Step Win for Speaker Mike Johnson, and AMERICA," Trump said in a Truth Social post Wednesday. "Now let’s start to BALANCE THE BUDGET. IT CAN BE DONE!!! DJT."

Although a handful of Republicans gave Johnson a hard time, several fiscal conservatives were in support of the bill before it ever hit the floor. Republican Reps. Andy Biggs of Arizona and Chip Roy of Texas, who have historically been defectors in previous spending fights, affirmed their support for the Trump-backed bill.

"Last night, the House laid the groundwork to fund America First priorities while bending the spending curve down," Biggs said in a Wednesday post on X. "House Republicans are committed to fulfilling the mandate delivered by the American people."

'I am hopeful and optimistic, and we’ll see if they can pull it off.'

The budget blueprint sets the stage to extend Trump's tax cuts, which are set to expire at the end of the year. The bill additionally allocates much-needed border and defense spending while also reducing certain aspects of spending.

The House is now caught up with the Senate, which approved its own budget blueprint the week before. Although both the House and the Senate are addressing Trump's policy priorities like border funding, tax extensions, and spending cuts, the Senate has opted for a two-bill approach as opposed to the House's single-bill approach.

With the Senate bill acting as a backup, Republicans are hopeful they can get Johnson's budget proposal through.

“I am hopeful and optimistic, and we’ll see if they can pull it off,” Senate Majority Leader John Thune (R-S.D.) said.

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Fiscal hawks send warning as 'big, beautiful bill' clears high-stakes vote: 'We have to do more to deliver'

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