U.S. House Tax and Spending Bill Stalled by GOP Infighting

WASHINGTON — U.S. House Republicans convened in Speaker Mike Johnson’s office on Tuesday to address unresolved issues surrounding the party’s proposed legislation, designed to overhaul tax structures and Medicaid. Johnson remarked on the necessity to solidify various details, particularly concerning the state and local tax deduction (SALT).

“We have several hours ahead to work this out, and I’m optimistic,” he stated, noting the complexity of the 1,100-page bill. Time is of the essence as he aims for a vote this week, despite uncertainty regarding support among Republican lawmakers.

Earlier, President Donald Trump met with all GOP lawmakers in a closed-door session, yet the meeting did not immediately sway dissenters. Trump expressed confidence post-meeting, claiming, “I think we have unbelievable unity. I think we’re going to get everything we want.” His assurance comes at a pivotal moment as House Republicans hold a slim majority, requiring nearly unanimous support for the legislation.

The current reconciliation bill seeks to raise the SALT cap from $10,000 to $30,000 for married couples filing jointly, with a phasedown for higher earners. However, many GOP members, particularly from high-tax states, find this inadequate. New York Rep. Nick LaLota emphasized the stakes involved, warning that failure to negotiate better terms could jeopardize his re-election.

LaLota stressed the importance of addressing these issues to maintain the party’s centrist members and the House majority in upcoming elections. “Get this issue right, and we’ll have an easier November of 2026,” he stated, asserting that mishandling it could lead to significant political losses.

Despite ongoing discussions, LaLota noted that a consensus had yet to be reached. Leadership appears to be more aware of the challenges presented by various factions within the party. Meanwhile, Rep. Mike Lawler voiced concerns, calling for genuine tax relief without compromising constituents’ interests.

Some far-right members also remain dissatisfied with the current bill, voicing concerns over inadequate deficit reduction measures. Texas Rep. Chip Roy expressed doubts about reaching an agreement, stating, “We’re still talking. We’ve had literally five meetings today already.”

Looking ahead, Senate Majority Leader John Thune indicated that significant modifications may be anticipated in the Senate once the House passes the package. He underscored the importance of evaluating spending reforms within the proposed legislation to establish a more sustainable fiscal future.

Thune noted, “This is a unique moment in time and in history where we have the opportunity to do something meaningful about government spending.” While there is general support for the proposed tax policies, questions remain about the longevity and security of these measures.