This is going to be make or break for the GOP.
Washington, D.C. — With Memorial Day looming, Republicans in Congress are racing to deliver on President Donald Trump’s signature legislative priorities — but internal clashes over taxes and Medicaid cuts are threatening to derail the effort.
For House conservatives, the next two weeks are critical. President Trump has called for bold reforms — including real spending cuts, lower taxes, and pro-growth economic policies — but party divisions on core issues like the state and local tax (SALT) deduction and Medicaid reform have complicated the path forward.
Tax Reform and Spending Cuts Under Fire as GOP Scrambles to Deliver
House Republican leaders are under mounting pressure to bring together fiscal conservatives, Trump-aligned loyalists, and moderates in vulnerable districts. Speaker Mike Johnson (R-La.) has promised to deliver what many are calling “Trump’s One Big Beautiful Bill” — but so far, results have been slow.
“We’re in the consensus-building business every single day,” Johnson told reporters. “Progress is happening, and I believe the final bill will reflect the conservative values our voters sent us here to fight for.”
But the reality on Capitol Hill tells a different story.
Conservatives Push for Real Medicaid Reform — Moderates Push Back
The House Energy and Commerce Committee is preparing to vote on the Medicaid reform package Tuesday. Trump’s America First base is demanding real accountability — including work requirements for able-bodied adults, six-month eligibility reviews, and cuts to wasteful spending that benefits non-citizens.
Moderates, however, are resisting deeper reforms. Proposals to cap federal Medicaid payments — or reduce the bonus payments to blue states that expanded the program — have sparked strong opposition from swing-district lawmakers.
“I’ve been clear: I will not support cuts to the enhanced match rate or per capita caps,” said Rep. Mike Lawler (R-N.Y.).
Still, America First conservatives insist that real budget reform is impossible without reining in entitlement growth — especially as the national debt spirals past $34 trillion.
SALT Deduction Dispute Becomes a Flashpoint in Trump’s Economic Plan
Another battle is erupting over the state and local tax (SALT) deduction cap, which Trump famously limited in his 2017 tax overhaul to curb blue-state tax shelters. Now, some House Republicans are pushing to increase the cap from $10,000 to $30,000 — a move fiercely opposed by fiscal hawks.
“This is not just bad policy — it’s a direct threat to Trump’s agenda,” said Rep. Elise Stefanik (R-N.Y.), who co-leads the SALT Caucus.
“This kind of bloated tax giveaway helps the rich in high-tax liberal states while hardworking families are still paying the price,” echoed Rep. Andrew Garbarino (R-N.Y.).
Rep. Brandon Gill (R-Texas) summed up the mood among conservatives on X: “If you want a higher SALT cap, you better find a way to pay for it.”
Speaker Johnson has been careful not to commit to any specific number, noting, “There’s a lot of analysis going into this. We’re working to ensure a solution that benefits the majority of constituents without blowing up the budget.”
Senate Republicans Losing Patience as House Stalls on Trump’s Agenda
On the other side of the Capitol, Senate Republicans are watching closely — and growing uneasy. Many have already warned that the Memorial Day deadline is slipping away, and the lack of clear legislative text has fueled skepticism.
“It’s like chasing a moving target,” said Sen. Markwayne Mullin (R-Okla.). “Every time one issue gets resolved, another one pops up. But it’s still the same dollars, and the same pressure.”
Still, there is hope. Senate GOP leaders, including John Thune (R-S.D.), huddled with Speaker Johnson, Trump’s top economic advisors, and House tax writers in a recent “Big Six” meeting to keep the process moving.
“I felt a strong sense of determination,” Thune said. “The wheels can fall off multiple times in this process. But at the end of the day, we’ve got to get this across the finish line — and I believe we will.”
Big Week Ahead for Republicans — and for Trump’s Legacy
With committee markups, key votes, and behind-the-scenes negotiations all happening in the next several days, this is shaping up to be the most consequential week yet in the Republican push to pass a conservative tax and spending package that reflects President Trump’s America First agenda.
For many GOP lawmakers, especially those who won in 2024 on promises to fight inflation, reduce government waste, and restore Trump’s economic playbook — the stakes couldn’t be higher.
“If we don’t get this done, the opportunity may not come back,” warned one senior GOP aide.
Conservatives across the country — especially older Americans concerned about tax burdens, runaway spending, and open-border welfare programs — are watching closely to see if Republicans can finally deliver.
