House Committee Advances Major GOP Tax Bill Amid Internal GOP Divisions

On May 18, 2025, the House Budget Committee narrowly approved a major tax and spending package dubbed the “One Big Beautiful Bill Act” with a 17-16 vote. Four Republicans voted “present,” highlighting growing tension within the party over the bill’s costs and spending cuts.

KBKG Insight:

The four members who voted “present” did so to let the bill advance in the process, but they clearly stated they will vote “no” on the final bill unless it changes. They’re not alone; other House Republicans outside the Budget Committee have also raised concerns about different parts of the proposal. With the GOP’s narrow majority, party leaders can only afford to lose three votes.

The proposal includes around $4.5 trillion in tax cuts, extending provisions from the 2017 tax law, eliminating taxes on tips and overtime, and temporarily bringing back bonus depreciation and the Section 174 research and experimental deduction. To help pay for it, the bill calls for roughly $2 trillion in cuts to federal programs like Medicaid and food assistance.

Despite these offsets, experts expect the legislation to increase the national debt by nearly $2.7 trillion over the next 10 years, fueling concern among fiscal conservatives and moderates about the long-term impact on the federal budget.

Negotiations are still underway, with disagreements over the scope of the spending reductions and the size of the tax breaks. The bill now heads to the Rules Committee and could reach the House floor soon, but lawmakers will try to reach a deal, as more changes are expected.