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Trump’s Tax Cut Plan Hits Roadblock Over Medicaid, Green Energy Dispute
Trump’s budget bill suffered a major blow as five Republicans joined Democrats to demand deeper spending cuts and reject the proposal.

US President Donald Trump’s budget proposal hit a major roadblock on Friday. Five Republicans joined all Democrats to vote against it. As a result, Trump’s domestic agenda suffered a serious blow.

Republican Split Emerges

Trump often praised the proposal as his "big, beautiful bill." However, some members of his own party refused to support it. Instead, they demanded deeper spending cuts.

Previously, Trump managed to pass bills with narrow margins. This time, though, he faced stiff resistance. He urged Republicans to unite, posting on Truth Social, "We don't need 'GRANDSTANDERS' in the Republican Party. STOP TALKING, AND GET IT DONE!"

Bill Not Dead, But Wounded

Although the bill is not completely defeated, the failed vote marked Trump’s first legislative loss of the year. Still, there’s a chance it could move forward with changes.

Meanwhile, Republicans remain divided. Some want more cuts to reduce government spending. Others fear losing support from voters who depend on programs like Medicaid.

Demands for Bigger Cuts

The five Republicans who voted no made their demands clear. First, they want Speaker Mike Johnson to slash Medicaid further. Second, they want him to fully cancel green energy tax breaks that Democrats had passed earlier.

Republican Chip Roy from Texas explained his position, "This bill falls profoundly short. It does not do what we say it does with respect to deficits."

Key Features of the Bill

The bill aims to extend tax cuts Trump introduced during his first term. In addition, it includes a new measure that exempts tips from taxation. Trump strongly supports that provision.

However, critics argue the bill mostly benefits the wealthy. They claim it offers little to working-class Americans.

Democrats Push Back

On the other hand, Democrats continue to oppose the bill. They want to stop cuts to Medicaid and the Affordable Care Act (ACA). These programs help millions afford healthcare.

Democratic Congressman Brendan Boyle from Pennsylvania warned, "No other previous bill, no other previous law, no other previous event caused so many millions of Americans to lose their healthcare. Not even the Great Depression."

Massive Cost Estimate

According to the bipartisan Joint Tax Committee, the bill’s tax cuts would cost $3.72 trillion over the next ten years. Therefore, critics warn the bill could significantly increase the national deficit.