A significant tax and spending bill supported by President Donald Trump advanced in the House Budget Committee after Republican leaders reached a compromise with conservative members. The agreement included accelerating proposed Medicaid work requirements and speeding up the phase-out of clean energy tax credits.

The committee vote followed a weekend of negotiations after four conservative lawmakers initially joined Democrats in blocking the bill. On May 18th, they abstained, allowing the measure to move forward toward a full House vote.

Representative Chip Roy of Texas, one of the conservative negotiators, said the deal involved starting Medicaid work requirements earlier than the original 2029 date, potentially beginning in 2027. The proposal, he said, still requires further revisions before it satisfies all concerns. Roy and the House Freedom Caucus emphasized they will continue to advocate for deeper spending cuts ahead of the floor vote.

The legislation includes multiple components, such as an extension of the 2017 tax cuts, revisions to the cap on the state and local tax (SALT) deduction, and changes to various clean energy tax incentives. While most Republicans support the core tax cuts, differences remain over policy specifics and cost offsets.

House Speaker Mike Johnson acknowledged that additional negotiations were needed but reiterated support for advancing work requirements and finalizing the bill. House Majority Leader Steve Scalise noted that several details, including the start date of Medicaid changes, remain under discussion.

White House Press Secretary Karoline Leavitt confirmed that President Trump is closely involved and prepared to directly engage with lawmakers to secure support. “President Trump is committed to seeing this tax and spending package through,” she said.

Despite the bill’s progress, challenges remain. Lawmakers from high-tax states—including New York, New Jersey, and California—are demanding a higher SALT cap to ease the federal tax burden on their constituents. Others, including moderate Senate Republicans, are concerned about the scope of proposed Medicaid changes.

Senator Josh Hawley of Missouri has voiced opposition to Medicaid cuts and suggested reducing prescription drug costs as an alternative for savings. Senators Susan Collins of Maine and Lisa Murkowski of Alaska, who opposed prior efforts to repeal the Affordable Care Act, may also be skeptical of deeper healthcare reductions.

Additionally, some senators are seeking a more gradual rollback of clean energy incentives. Senator Thom Tillis of North Carolina, for example, has highlighted the importance of protecting existing investments in renewable energy within his state.

House Republicans originally proposed that many clean energy tax credits begin phasing out in 2029. Credits for electric vehicles would largely expire by the end of 2025. These measures are aimed at offsetting the cost of the broader tax package.

The bill’s advancement represents a key step in shaping federal fiscal policy, though more debate is expected in both chambers as lawmakers weigh economic priorities against political and regional considerations.

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