Republicans Demand Trump Bill Remain Deficit Neutral

House Republicans are facing internal divisions as they craft a major budget reconciliation bill to advance President Trump's tax and spending agenda, with fiscal conservatives warning that any legislation must not add to the U.S. deficit. Over 30 GOP lawmakers have insisted in letters to House Speaker Mike Johnson and Majority Leader Steve Scalise that the bill include at least $2 trillion in verifiable savings, either by cutting spending or reducing the scale of tax cuts. While some conservatives demand deep Medicaid cuts, moderates and swing-district Republicans are resisting significant reductions to the program, complicating negotiations. Additionally, lawmakers from high-tax blue states are threatening to withhold their votes unless the State and Local Tax (SALT) deduction cap is raised, further straining consensus. The bill, which Republicans hope to advance by summer, seeks to extend the 2017 tax cuts, eliminate certain taxes, and boost funding for defense and deportations, but faces challenges in balancing tax relief, spending priorities, and deficit concerns. These tensions highlight the difficulty Republicans face in uniting their narrow majority around a fiscally disciplined package that satisfies both party factions and regional interests.