Trump’s tax and immigration bill advances after budget panel breakthrough

Trump’s tax and immigration bill clears key hurdle after late-night vote

Fiscal conservatives shift to “present” votes, allowing narrow 17–16 passage from budget committee

In a late-night vote on Sunday, House Republicans advanced President Donald Trump’s sweeping tax and immigration bill, overcoming internal divisions that threatened to derail a key pillar of his second-term agenda. The legislation, branded by Trump as the "One Big Beautiful Bill", cleared the House Budget Committee after four conservative Republicans changed their votes from “no” to “present,” allowing the bill to pass by a single vote margin.

The 17–16 vote followed a weekend of intense negotiation between GOP leaders and members of the ultraconservative House Freedom Caucus, who had initially blocked the bill due to concerns over its impact on the $36.2 trillion national debt.

GOP infighting over deficit, Medicaid work rules

The legislation is a cornerstone of Trump’s economic and border enforcement strategy, blending extensions of the 2017 tax cuts with aggressive new spending on immigration enforcement, defense, and social program reforms. But the bill’s projected $2.5 trillion increase in the deficit over the next decade drew backlash from fiscal hawks.

Reps. Chip Roy (Texas), Ralph Norman (South Carolina), Josh Brecheen (Oklahoma), and Andrew Clyde (Georgia) had previously joined Democrats to block the bill in committee. Their shift to “present” votes followed assurances from House Speaker Mike Johnson that some of their demands—particularly an accelerated timeline for Medicaid work requirements—would be addressed before the bill hits the House floor.

Related: New inflation data challenges Donald Trump’s promise to lower prices

Tension grows between GOP factions

Speaker Johnson called the committee outcome a “big win”, but acknowledged the challenge of reconciling far-right demands for spending cuts with the concerns of moderate Republicans in swing districts, who fear voter backlash over cuts to social programs.

Rep. Nick LaLota (R-New York) said the bill still needs adjustments, including a higher state and local tax deduction (SALT) cap for high-tax states. While the current version raises the SALT cap from $10,000 to $30,000, LaLota called it “still insufficient” to protect middle-class taxpayers.

Moderates like LaLota are pressing for Medicaid and food stamp protections, even as conservatives push for steeper reductions in entitlement spending.

“The One Big Beautiful Bill has stalled—and it needs wind in its sails,” LaLota wrote on social media Sunday night.

Clock ticking before House floor vote

With only a two-vote GOP margin in the House, Johnson’s team is under pressure to finalize amendments that can secure support from both wings of the party. The House Rules Committee—which includes two of the Sunday night holdouts—will meet this week to prepare the bill for a floor vote.

Speaker Johnson has set a deadline of Memorial Day to pass the bill and insisted Sunday that he remains “absolutely convinced” that goal is realistic.

Meanwhile, Trump—freshly returned from a Middle East trip—played golf while staying in close contact with Johnson, according to White House officials. The former president has yet to engage directly with the Freedom Caucus rebels, but aides say he remains focused on delivering a legislative win.

“STOP TALKING, AND GET IT DONE!” Trump posted over the weekend, urging unity around the bill.

What’s in the bill?

The One Big Beautiful Bill combines popular tax breaks with controversial policy overhauls, including:

• Permanent extension of Trump’s 2017 tax cuts, set to expire in December

• Elimination of taxes on tips, overtime wages, and auto loan interest

• Hundreds of billions in immigration enforcement funding, including border wall construction and expanded ICE operations

• Tightened work requirements for Medicaid, phased in over four years

• SALT deduction cap increase from $10,000 to $30,000 for blue states

• Cuts to non-defense discretionary spending, though specifics remain in flux

Critics say the package favors the wealthy and undermines safety nets, while supporters hail it as a pro-growth, pro-border security initiative.

Next steps: showdown or compromise?

If Johnson cannot secure support from both hard-liners and moderates, the bill could stall or be rewritten yet again. Meanwhile, the deficit debate looms large, with lawmakers like Rep. Clay Higgins (R-Louisiana) warning against any budget that “increases federal deficit spending.”

As the House prepares for a pivotal vote, the bill remains a high-stakes test for Trump’s influence on the GOP, and for Johnson’s ability to govern a fractious Republican majority.

Stay tuned to The Horizons Times for updates on Trump’s legislative agenda, House GOP negotiations, and federal tax and immigration policy.