Skip to content
Search

Latest Stories

Analysis

We read the “Big, Beautiful, Bill” so you don’t have to

​U.S. President Donald Trump speaks next to U.S. House Speaker Mike Johnson (R-LA), on the day of a closed House Republican Conference meeting on Capitol Hill in Washington, D.C., U.S., May 20, 2025.

U.S. President Donald Trump speaks next to U.S. House Speaker Mike Johnson (R-LA), on the day of a closed House Republican Conference meeting on Capitol Hill in Washington, D.C., U.S., May 20, 2025.

REUTERS/Ken Cedeno

Republicans have a math problem—and it’s turning into a political one. As the party in full control of government moves to advance its sweeping policy agenda, internal divisions are surfacing over what to prioritize: tax cuts or budget cuts.

On Tuesday, Donald Trump met with House Republicans in an effort to rally them behind the so-called “One Big, Beautiful Bill”—a 1,116-page budget package. The bill would boost border security, and make Trump’s 2017 tax cuts permanent. Those tax cuts are projected to add over $5 trillion to the national deficit.

This is the problem: How do you give funds to expensive policy priorities, without ballooning the deficit – which many Republicans adamantly oppose?


Enter the budget hawks. The House Freedom Caucus sees the Republican unified government as a rare opportunity to dramatically scale back government spending. But keeping the Trump tax cuts in place while reducing the deficit would require deep budget cuts. And despite efforts to target government “waste,” it's nearly impossible to achieve the scale of savings they want without touching some of the biggest drivers of federal spending: Medicare, Medicaid, defense, and Social Security.

With cuts to defense and Social Security — the largest two expenditure categories — largely off the table because of their near-universal popularity among Republican voters, the Freedom Caucus has zeroed in on Medicaid, which funds medical care for low-income people. Their proposals include stricter work requirements, excluding undocumented immigrants from coverage, and reducing the amount of Medicaid funding that states get from the federal government. These changes could leave millions more Americans without health insurance.

But moderate Republicans are pushing back, warning that such drastic cuts could be politically damaging. Polls show that 75% of Republicans view Medicaid favorably, and the program is more prevalent in red states than blue.

As GOP communications strategist Douglas Heye put it, “They could be biting their own voters,” if the cuts are too steep. Trump seems to understand this political calculus. In Tuesday’s closed-door meeting, he reportedly told Republicans: “Don’t fuck around with Medicaid.”

Another major sticking point is the cap on state and local tax, AKA SALT, deductions. A group of moderate Republicans from high-tax states has warned they’ll oppose the bill unless the cap is raised—an adjustment that would further reduce the federal revenue needed to offset the growing debt.

But if you’re thinking, surely you don’t need 1,116 pages just for some tax proposals and Medicaid referendums, you’re correct. There are a lot of other policies in this bill worth knowing about:

  • It increases the debt limit by $4 trillion.
  • It creates MAGA accountsshort for Money Account for Growth and Advancement – which would authorize the Treasury to create tax-preferred savings accounts for children, and give each child $1,000 initial deposit.
  • It eliminates most of Biden’s clean energy provisions, like the electric-car tax credit, and strikes the majority of the programs in the $1 trillion Inflation Reduction Act of 2022.
  • It appropriates $500 million to update government agencies with AI technology.
  • It eliminates the $200 excise tax on firearm silencers.

All of that extra pork could be on the table as negotiations heat up.

“When you're in this stage of negotiations, it’s not about how much gets added—it’s about what gets cut,” says Heye.

The House is expected to start making final cuts in the early hours of Wednesday —with voting as early as 1 AM — with debate stretching into Thursday. Holdouts are pushing to get the bill to a place they can claim as a victory for their faction -- before ultimately, and inevitably, falling in line. The goal is to send the bill to the Senate before the Memorial Day weekend kicks off.

But the fight is far from over. The Senate will have its own priorities—and its own fractures — to manage. Experts say the chance of a bill, no matter how big or beautiful, is slim before July 4th.

More For You

What to know about China’s military purges
Xi Jinping has spent three years gutting his own military leadership. Five of the seven members of the Central Military Commission – China's supreme military authority – have been purged since 2023, all of whom were handpicked by Xi himself back in 2022. But if anyone seemed safe from the carnage, it was Zhang Youxia.Zhang wasn't just China's most [...]
​Mexican President Claudia Sheinbaum Pardo, Canadian Prime Minister Mark Carney, and US President Donald Trump during the 2026 World Cup draw in Washington, D.C., on December 5, 2025.

Mexican President Claudia Sheinbaum Pardo stands alongside Canadian Prime Minister Mark Carney and US President Donald Trump during the 2026 World Cup draw at the John F. Kennedy Center for the Performing Arts in Washington, D.C., on December 5, 2025.

Deccio Serrano/NurPhoto
When Canada’s Prime Minister Mark Carney took to the stage last week at Davos, the typically-guarded leader delivered a scathing rebuke of American hegemony, calling on the world’s “middle powers” to “act together” as a buffer against hard power. Though Carney didn’t mention him by name, the speech was aimed squarely at US President Donald [...]
China’s economy is growing, but it’s stuck in a deflationary trap

An employee works on the beverage production line to meet the Spring Festival market demand at Leyuan Health Technology (Huzhou) Co., Ltd. on January 27, 2026 in Huzhou, Zhejiang Province of China.

Photo by Wang Shucheng/VCG
For China, hitting its annual growth target is as much a political victory as an economic one. It is proof that Beijing can weather slowing global demand, a slumping housing sector, and mounting pressure from Washington.Against that backdrop, China announced last week that its economy grew 5% in 2025, neatly hitting the government’s official GDP [...]
​The World Health Organization (WHO) headquarters is seen in Geneva, Switzerland, January 28, 2025.

The World Health Organization (WHO) headquarters is seen in Geneva, Switzerland, January 28, 2025.

REUTERS/Denis Balibouse
Seventy-eight years after helping found the World Health Organization (WHO), the United States has formally withdrawn from the agency, following through on a pledge President Donald Trump made on his first day back in office.In a joint statement last week, the Department of Health and Human Services (HHS) and the Department of State said the WHO [...]