• Republican leaders are struggling to pass the Trump-backed One Big Beautiful Bill Act (OBBBA) due to deep intra-party divisions over spending cuts, tax reforms, and social program adjustments. The bill’s revised Senate version has sparked backlash from fiscal conservatives and moderates, threatening its passage before the July 4 deadline.

WASHINGTON, D.C. — Republican leaders are scrambling to push the Trump-endorsed One Big Beautiful Bill Act (OBBBA) through Congress by Independence Day, but mounting intra-party divisions could derail the sweeping legislation. The bill, a multitrillion-dollar budget reconciliation package, aims to cement President Trump’s policy priorities, including extending tax cuts and reshaping entitlement programs. Yet, key disagreements over spending cuts, tax reforms, and social program adjustments have left lawmakers at odds, threatening its passage in both chambers.

The House approved the OBBBA in May after Speaker Mike Johnson (R-La.) navigated months of negotiations to balance Republican factions. The bill includes a 10-year extension of the 2017 Tax Cuts and Jobs Act, alongside $1.7 trillion in spending cuts targeting programs like Medicaid and SNAP. However, the Senate’s revisions—boosting the debt ceiling raise to $5 trillion, softening work requirements for Medicaid, and removing provisions for state and local tax (SALT) deductions—have sparked backlash among fiscal conservatives and moderate Republicans alike.

“We need to stick to the principles that got this bill passed in the House,” said Rep. Chip Roy (R-Texas), a key fiscal hawk. “The Senate’s changes completely undermine what we fought for.” Roy and his colleagues, including Reps. Ralph Norman (R-S.C.) and Thomas Massie (R-Ky.), have vowed to withdraw support if the bill returns to the House in its revised form.

Key Senate Changes Spark GOP Divisions

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Among the most controversial Senate changes is the removal of SALT deductions, a move that has alienated moderate Republicans from high-tax states like New York. Reps. Mike Lawler, Nick LaLota, Andrew Garbarino, and Elise Stefanik—all representing New York districts—had initially supported the bill after securing a $40,000 SALT cap. Now, they too are signaling opposition.

“These deductions are critical for middle-class families in my district,” said Lawler. “The Senate’s decision to scrap them is unacceptable.”

Senate leaders have also faced criticism for increasing the debt ceiling raise and extending Trump-era tax cuts indefinitely, rather than for the 10 years initially proposed. Some senators, including Ron Johnson (R-Wis.) and Rand Paul (R-Ky.), have publicly condemned these changes as fiscally irresponsible.

“Adding more debt while making permanent tax cuts is a recipe for disaster,” said Johnson.

Impact on Social Programs Raises Alarm

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The bill’s revised Medicaid provisions—which lower the House’s proposed provider tax cap from 6% to 3.5%—have raised concerns among lawmakers from rural states. Sen. Josh Hawley (R-Mo.) warned that the change could devastate healthcare providers in his state.

“Our rural hospitals are already struggling,” Hawley said. “This policy would make it even harder for them to stay afloat.”

Despite these concerns, negotiations continue behind closed doors. Speaker Johnson and Senate leaders are working to address lawmakers’ reservations while awaiting the Senate parliamentarian’s review. Some of the more contentious changes could still be ruled out under the Byrd Rule, which limits extraneous provisions in budget reconciliation bills.

What’s at Stake for the Nation?

If passed, the OBBBA would mark a major legislative victory for President Trump’s agenda, reshaping federal spending and tax policy for years to come. However, the deep divisions within the GOP highlight the challenges of governing in an era of heightened partisanship and fiscal uncertainty.

As the July 4 deadline looms, all eyes are on the Capitol. The stakes go beyond party politics—this bill could redefine the nation’s economic and social policy landscape.

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