GOP Strikes Deal to Revive Trump Tax Plan Amid Internal Divisions
In a significant turn of events for President Donald Trump’s economic agenda, House Republican leaders have struck a deal with holdout lawmakers to advance a sweeping tax policy overhaul. The breakthrough came late Wednesday, after days of tense negotiations within the GOP conference.
The new version of the bill, revealed just before 11 p.m. on May 21, includes several key changes aimed at appeasing various factions within the party. Among the adjustments:
- Medicaid work requirements will now be implemented in December 2026, three years earlier than the original 2029 timeline.
- Green energy tax credits for new projects will be terminated 60 days after the bill’s passage.
- The name of the proposed “MAGA” savings accounts will be changed to “Trump” accounts, signaling a shift in branding.
- The cap on state and local tax (SALT) deductions will be raised to $40,000 for individuals earning under $500,000 annually.
House Speaker Mike Johnson expressed optimism about the deal. “I think that all of our colleagues here will really like the final product, and I think we’re going to move forward,” he said during a press briefing Wednesday evening, just hours before the amendment was released.
The proposed changes address a range of demands from influential GOP groups, including the House Freedom Caucus, which sought deeper budget cuts, and moderate Republicans from high-tax states, who fought for a more generous SALT deduction.
Despite the breakthrough, tensions remain high. The amendment was introduced during a late-night Rules Committee meeting, leaving Democrats scrambling to assess the implications.
“I have no idea what the implications are of the changes being made,” said Rep. Jim McGovern (D-Mass.), the ranking Democrat on the committee, which had been deliberating the legislation for nearly 20 hours before the amendment dropped.
A full House vote on the bill could come as soon as tonight or tomorrow morning. Republicans have a razor-thin margin and can only afford to lose three votes from their ranks to pass the measure. Should it clear the House, the bill would then move to the Senate.
The White House is applying pressure. President Trump hosted lawmakers at the White House on May 21 to urge support. Later that day, the Office of Management and Budget issued a stark warning: “Failure to pass this bill would be the ultimate betrayal.”
Still, consensus is not guaranteed. Some Republicans voiced discontent with the revised language. Rep. Andrew Garbarino (R-N.Y.) expressed frustration over the green energy cuts, saying he’s “not happy” with that part of the deal.
As the vote looms, the GOP leadership faces a final sprint to unite its caucus and deliver a legislative victory for Trump, one that could shape the nation’s fiscal policy for years to come.
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