In a significant legislative development, the House Ways and Means Committee approved President Donald Trump's comprehensive tax and spending proposal, commonly referred to as the "big, beautiful bill," following an extensive overnight debate. The committee's 26-19 party-line vote on May 14, 2025, propels the bill toward full House consideration, where it is poised to ignite intense partisan discourse.

The legislation aims to extend key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) from 2025 to 2029, addressing priorities of business lobbyists. However, many elements, including campaign promises and business incentives, have been designed to sunset after a few years, creating potential fiscal uncertainty and limiting long-term pro-growth effects.

To offset the cost of these tax benefits, the bill proposes substantial budget cuts, particularly targeting Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Proposed reforms would tighten Medicaid eligibility, potentially removing 7.7 million recipients and cutting $715 billion in federal spending. Additional SNAP rule changes would enforce work requirements and shift some costs to states.

The Congressional Budget Office estimates that the proposed Medicaid changes could lead to 8.6 million Americans losing coverage. The SNAP program would also be narrowed by imposing tougher work requirements and shifting more financial responsibility to states.

The bill also proposes raising the debt ceiling by $4 trillion, with Treasury Secretary Scott Bessent urging action by mid-July to avoid a potential default.

The legislation now moves to the full House for consideration, where Republicans must maintain party unity to pass the bill through the House, where they hold a slim 220-213 majority, and the Senate.

House Republicans remain divided over President Donald Trump's sweeping tax and spending bill, now approved by the Ways and Means Committee despite united Democratic opposition. The legislation includes $5 trillion in tax cuts and $1.5 trillion in reductions to Medicaid, SNAP, and green energy programs, with opposition surfacing within GOP ranks. Conservatives criticize the bill’s Medicaid work requirements as insufficiently strict and demand deeper budget cuts, while GOP lawmakers from high-tax states like New York insist on more generous state and local tax (SALT) deductions. The Congressional Budget Office estimates 7.6 million fewer people would have health coverage under the proposed Medicaid changes, and 3 million fewer would receive SNAP benefits monthly.

Amid intense partisan debate and GOP infighting, House Speaker Mike Johnson is striving to pass the bill before Memorial Day. The reforms also extend Trump’s previous tax cuts and introduce new ones, such as eliminating taxes on tips and Social Security benefits. However, the lowest-income Americans could see higher tax rates under the proposal. Democrats argue the bill benefits the wealthy at the expense of vulnerable populations and have proposed hundreds of amendments, most of which have failed.

Pennsylvania Governor Josh Shapiro warned that proposed Medicaid cuts by Congress could cost the state billions in federal aid, leave hundreds of thousands of residents without health insurance, and lead to the closure of struggling rural hospitals. Speaking on WILK-FM radio, Shapiro emphasized that the state lacks the resources to compensate for the federal funding reductions. His concerns come as Medicaid costs rise, partly due to sicker-than-expected enrollees post-COVID-19. While Shapiro’s proposed FY2025 budget requests an additional $2.5 billion for Medicaid, Pennsylvania’s $10.5 billion reserve—boosted by federal COVID-relief and tax revenues—may not suffice. Medicaid currently covers 3 million Pennsylvanians and costs the state about $50 billion annually. Nationally, the GOP-controlled U.S. House is considering nearly $800 billion in Medicaid cuts over the next decade, which could cause at least 7.6 million Americans to lose coverage according to the Congressional Budget Office. Republicans claim the cuts are aimed at improving efficiency, but Shapiro argues they will deny essential healthcare access to constituents.

The current version of the "big, beautiful bill," a significant piece of tax legislation endorsed by President Trump, has progressed through the House Ways and Means Committee. The bill proposes extending key provisions of the 2017 tax cuts from 2025 to 2029, addressing priorities of business lobbyists. However, many elements, including campaign promises and business incentives, have been designed to sunset after a few years, creating potential fiscal uncertainty and limiting long-term pro-growth effects. According to the Tax Foundation, the bill could boost long-term GDP by 0.6%, but other government measures, such as tariffs, may negate these gains. Some provisions, like changes to tax brackets, a higher standard deduction, and an increased estate tax exemption, are permanent. The bill still faces considerable political hurdles and internal Republican disagreements before it can become law, and whether temporary provisions will eventually be extended remains uncertain.

As the bill advances to the full House, its passage remains uncertain amid internal Republican divisions and unified Democratic opposition. The outcome will significantly influence the nation's fiscal policy and the political landscape leading up to the 2026 midterm elections.