Giant tax and spending bill in U.S. House remains snagged by GOP disputes

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President Donald Trump arrives with Speaker of the House Mike Johnson, R-La., for a House Republican meeting at the U.S. Capitol on May 20, 2025 in Washington, D.C. (Photo by Kevin Dietsch/Getty Images)

WASHINGTON — The U.S. House Republicans who have yet to rally behind the party’s “big, beautiful bill” huddled in the speaker’s office Tuesday as different factions tried to hash out agreement on taxes, Medicaid and a few other outstanding issues.

Speaker Mike Johnson, R-La., told reporters before those meetings began there were “a number of loose ends to tie up” with deficit hawks and members from high-tax states, who are pressing to raise the state and local tax deduction, also known as SALT.

“We got some hours ahead of us to work this out, and I’m very confident we will,” Johnson said. “I’m going to have a series of meetings that will begin right now in my office to try to tie up the final loose ends. This is a 1,100-page piece of legislation. We’re down to a few provisions so we are very confident, very optimistic we can get this done and stay on our timetable.”

Johnson hopes to pass the legislation this week, though he didn’t appear to have the votes as of Tuesday afternoon.

Trump pays a House call

The smaller meetings followed a closed-door huddle between all the chamber’s GOP lawmakers and President Donald Trump earlier in the day that didn’t quite have the intended effect of immediately convincing holdouts to vote for the bill.

Trump, however, appeared to declare victory before leaving the Capitol.

“I think we have unbelievable unity. I think we’re going to get everything we want,” Trump said after the morning meeting. “And I think we’re going to have a great victory.”

House Republicans have an extremely thin 220-213 majority, requiring nearly every GOP lawmaker to support the 1,116-page package in order for it to reach the Senate.

Getting SALT-y

The reconciliation bill currently proposes lifting the SALT cap from $10,000 to $30,000 for married couples filing jointly, with a phase-down for those earning $400,000 or more, but that’s not enough for Republicans from states most impacted by the aspect of tax law.

New York Republican Rep. Nick LaLota told reporters in the early afternoon that he would likely lose reelection if he can’t secure a better SALT agreement than what was on the table.

“If I do a bad deal, I would expect my constituents to throw me out,” LaLota said. “If I did a deal at $30,000, my own mother wouldn’t vote for me.”

LaLota said Republicans leaders should prioritize a deal that benefits swing voters to avoid the party losing centrist members and possibly the House majority in the 2026 midterms.

“If we win that one issue, they’ll have a much easier November of 2026. And thus we’ll be able to keep the House and do other fiscally responsible things for the next couple of cycles here, if we get this one issue right,” LaLota said. “Conversely, you get this issue wrong — you vote for a bad bill and you keep the cap low — those folks are getting thrown out of office, we lose the majority, and then we have an open border, then we have an impeached president, and then we have all the other things that America voted against.”

LaLota said later Tuesday, after GOP leaders proposed different SALT cap numbers, that there was still “no accepted deal, yet the parties are talking a little more with an understanding of each other’s position.”

“Leadership understands better what our pain threshold is,” LaLota said. “We clearly rejected the $30,000 number that’s in the Ways and Means bill.” 

He declined to say if the SALT Caucus was prepping a counteroffer for leadership, but said that staff were conducting “some research on some of the mixes of income caps and what SALT cap there would be and how much that would be valued at relative to the entire $4 trillion package.”

‘Bad faith negotiation’

Rep. Mike Lawler, a staunch supporter of raising the SALT cap for his constituents north of New York City, would not comment to reporters outside the speaker’s office about a specific dollar amount but said there’s an “improved offer” on the table.

“We’re waiting on more details. We’ll have more to say later,” Lawler said.

Speaking to Fox News in the hallway, he said, “I’m not going to sacrifice my constituents and throw them under the bus in a bad faith negotiation, which is what this has been by leadership and Jason Smith,” he said referring to the chair of the House Committee on Ways and Means.

“We need to come to an agreement. We need to provide real and lasting tax relief, and that’s what I’m fighting for, for my constituents. I respect the president … but I’ll respectfully disagree,” Lawler said.

Trump urged House Republicans Tuesday morning that raising the SALT cap benefits Democratic governors.

Conservatives still unhappy

Complicating negotiations, some far-right House Republicans remain opposed to the bill, saying it does not go far enough.

Rep. Chip Roy of Texas, who did not support the bill during a committee vote Sunday night, told States Newsroom Tuesday afternoon that his “concerns and problems still exist.”

Roy argues the massive reconciliation deal does not reduce deficit spending enough, particularly with respect to Medicaid and clean energy tax credits.

When asked whether lawmakers were approaching an agreement, Roy said “Not sure. We’re still talking. We’ve had literally like five meetings today already.”

Thune predictions

The House passing the package this week would only be one of many steps in the long, winding process.

Senate Majority Leader John Thune, R-S.D., said during a press conference Tuesday afternoon, just after Johnson spoke during a closed-door lunch, that changes to the package are expected in the upper chamber.

Thune said one of the major questions for GOP senators is whether the legislation holds “sufficient spending reforms to get us on a more sustainable fiscal path.”

“I think most of our members are in favor of a lot of the tax policy and particularly those portions of the tax policy that are stimulative, that are pro-growth, that will create greater growth in the economy,” Thune said. “But when it comes to the spending side of the equation: This is a unique moment in time and in history where we have the House and the Senate and the White House, and an opportunity to do something meaningful about government spending.”

Thune said that GOP senators would likely make “tweaks” to the tax provisions once the House sends over a package, especially around how long certain tax policy lasts.

“They have cliffs and some shorter-term timeframes when it comes to some of the tax policies,” Thune said. “We believe that permanence is the way to create economic certainty and thereby attract and incentive capital investment in this country that creates those good-paying jobs, and gets our economy growing and expanding, and generates more government revenue.”

This post was originally authored and published by Jennifer Shutt, Ashley Murray from via RSS Feed. to get your news feed on Nationwide Report®.