Trump's Budget Bill Faces House Test After Senate Approval: Key Conflicts and Uncertain Future

Trump's Budget Bill Faces Hurdles in the House

President Trump's massive tax and spending budget bill has returned to the US House of Representatives after a narrow passage in the Senate. The bill's future is uncertain as it faces resistance from within the Republican party.

Senate Approval and Republican Divisions

The bill narrowly cleared the Senate with Vice-President JD Vance casting a tie-breaking vote. However, it has proven difficult to pass through the House, where internal divisions among Republicans are causing delays.

Key Points of Contention

Several factors are contributing to the opposition. Fiscal conservatives, particularly the House Freedom Caucus, are concerned about the bill's potential $3.3 trillion increase to the national deficit. This concern has been echoed by Elon Musk. Representatives from poorer districts are also worried about potential cuts to healthcare and social programs, especially Medicaid.

SALT Deduction Cap

Another key issue is the state and local tax (SALT) deduction cap. The current cap is $10,000, and both the House and Senate versions propose increasing it to $40,000. However, the Senate version includes a provision that would revert the cap to $10,000 after five years, causing concern among some House Republicans.

Uncertain Future

Despite efforts by the White House to persuade holdouts, the future of the bill remains uncertain. Its fate will significantly impact President Trump's agenda and the direction of US fiscal policy.