Trump pushes mega-bill to cement economic legacy — and test GOP unity

Mace | 20th May 2025 | International, Washington
Trump,Silhouette,And,Dollar,Bills

Trump’s sweeping tax-and-spending bill seeks to extend tax cuts, boost defense, and end taxes on tips—while slashing Medicaid and green subsidies. The $3T package faces GOP infighting, fiscal watchdog warnings, and a credit downgrade. With 2026 midterms looming, Trump’s legacy bill heads to a divided House and combative Senate.

President Donald Trump is pressing forward with a sweeping tax and spending bill that he hopes will unify Republicans behind his economic agenda. The proposed legislation spans over a thousand pages and includes provisions to extend the 2017 tax cuts, eliminate federal taxation on tips and overtime pay, and significantly increase funding for defence and border infrastructure. To offset the projected costs, the bill recommends steep cuts to Medicaid, clean energy subsidies, and other federal programmes. Although the bill passed its initial hurdle in the House Ways and Means Committee, it faces resistance from within the Republican Party. Hardline fiscal conservatives are demanding stricter work requirements for Medicaid and deeper reductions in federal spending. Simultaneously, GOP moderates representing high-tax states have voiced opposition to plans that would cap deductions for state and local taxes at lower levels, potentially increasing the burden on their constituents. Economic an...

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