House Panel Advances Trump Tax-Cut Package After Late-Night Vote

A sweeping package to extend and expand President Donald Trump’s 2017 tax cuts cleared a key hurdle late Sunday, edging the bill toward a floor vote in the U.S. House of Representatives later this week, as per Al Jazeera.

The House Budget Committee approved the legislation 17–16 during a rare Sunday night session. All Democrats opposed the measure, while four hard-line Republicans voted “present,” allowing the bill to advance after blocking it on Friday over disputes about spending offsets.

Hard-line conservatives relented following closed-door talks with Speaker Mike Johnson and White House aides. Johnson described the final tweaks as “minor modifications,” though negotiations are expected to continue “right up until the time we put this big, beautiful bill before the House,” Budget Chair Jodey Arrington said.

Key sticking points include proposed Medicaid cuts and the repeal of several green-energy tax credits. Senate Republicans have signaled resistance to deep Medicaid reductions, warning they could alienate voters ahead of the 2026 mid-terms.

Non-partisan estimates put the bill’s cost at $3 trillion to $5 trillion over ten years, potentially pushing federal debt to 134 percent of GDP by 2035, according to Moody’s. The agency cited the mounting debt burden when it downgraded U.S. credit on Friday—mirroring earlier moves by Fitch and S&P.

Treasury Secretary Scott Bessent dismissed the ratings cut in a CNN interview, arguing that stronger growth generated by the tax overhaul would “more than offset” additional borrowing.

What the bill does:

• Extends individual and small-business rate cuts enacted in 2017.
• Eliminates taxes on tips and certain overtime pay, fulfilling Trump campaign pledges.
• Raises defense spending and channels more funds to border-security initiatives.
• Imposes spending trims—notably to Medicaid—intended to appease fiscal hawks.

Budget analysts say the Medicaid provisions would remove about 8.6 million beneficiaries from the program.

Republicans hold a narrow 220-213 House majority, leaving leadership little room for defections when the bill reaches the floor. Even if it passes the House, the legislation faces tougher odds in the Democratic-controlled Senate amid concerns over debt and social-program cuts.

Senator Chris Murphy (D-CT) warned that further credit downgrades “mean higher borrowing costs and elevate the risk of recession.”