Trump Tax Bill Passes Key US House Committee Amid GOP Medicaid Dispute

President Donald Trump's sweeping tax-cut bill, which seeks to extend the 2017 tax cuts, has advanced through the House Budget Committee after overcoming opposition from hardline Republican conservatives concerned about Medicaid spending cuts and the repeal of green energy tax credits. The bill passed the committee in a narrow 17-16 vote, with four hardline Republicans abstaining to allow progress, following intense negotiations with party leaders. Nonpartisan analysts warn the legislation could add $3 to $5 trillion to the national debt over the next decade, a factor contributing to Moody's recent downgrade of the U.S. credit rating amid concerns that debt could reach 134% of GDP by 2035. Treasury Secretary Scott Bessent dismissed the downgrade's significance, asserting the bill would spur economic growth sufficient to offset debt increases. Despite the bill's advancement, Republican divisions remain over Medicaid cuts and spending offsets, with some conservatives still pushing for deeper cuts and others from high-tax states threatening to oppose the measure without concessions. The bill's passage in the full House and consideration in the Senate remain uncertain, signaling ongoing partisan debates about its economic and social impact.