Trump’s Tax-Cut Bill Clears Key Hurdle in U.S. Congress

WASHINGTON – In a significant win for President Donald Trump and House Speaker Mike Johnson, a sweeping Republican tax-cut bill advanced in the U.S. Congress on Sunday, following approval by the House Budget Committee during an unusual late-night session.

Four conservative Republicans who had previously stalled the bill allowed it to move forward after closed-door negotiations. While they continue to demand deeper spending cuts, they supported committee passage to keep talks alive.

“This is progress, but not nearly enough,” said Rep. Chip Roy, one of the dissenters. A full House vote could come later this week.

The bill proposes extending Trump’s 2017 tax cuts, reducing taxes on tips and overtime income, increasing defense spending, and allocating more funding for immigration enforcement. However, nonpartisan analysts warn it could add $3–5 trillion to the national debt over the next decade.

Moody’s recently downgraded the U.S. credit rating, citing mounting debt projected to reach 134% of GDP by 2035. Republicans dismissed the warning. Treasury Secretary Scott Bessent downplayed the downgrade, saying the tax cuts would drive economic growth to offset rising debt.

Hardline conservatives are also pushing for harsher Medicaid cuts and a repeal of green tax credits, though moderates in both the House and Senate oppose such measures, warning they could alienate Trump’s voter base.

The proposal includes Medicaid work requirements, which critics say would remove 8.6 million people from the program. Rep. Ralph Norman insisted the growing debt is the greater danger: “We’ve been downgraded three times. The debt is the real problem.”

Economic experts argue the credit downgrade signals real fiscal danger and could lead to higher interest rates. Democrats, including Sen. Chris Murphy, warn that the tax plan and rising debt could tip the U.S. into recession.

Meanwhile, the House Rules Committee will now prepare the bill for a floor vote, with Johnson aiming for passage before the Memorial Day holiday on May 26.

As the U.S. faces a looming summer deadline to raise the debt ceiling and avoid default, the bill’s fate remains uncertain—amid sharp divisions not only between parties but within the GOP itself.