After days of intense talks, Republican leaders in the House seem to have reached an agreement to move forward with President Donald Trump’s major tax reform bill. The plan includes important updates aimed at satisfying different GOP factions and speeding up the legislation’s progress.
Key changes in the proposal include moving the start date for Medicaid work requirements from 2029 up to December 2026, cutting many green energy tax credits for projects beginning 60 days after the bill passes, renaming new savings accounts from “MAGA” accounts to “Trump” accounts, and increasing the cap on state and local tax deductions to $40,000—but only for people earning under $500,000 a year.
House Speaker Mike Johnson expressed optimism about the deal, telling reporters, “I think all of our colleagues here will really like the final product and I think we’re going to move forward.” These revisions came after Republican lawmakers debated for days, trying to balance demands from different groups—from the ultraconservative House Freedom Caucus, which wants deeper cuts, to blue-state Republicans pushing for bigger tax deductions, and others focused on scaling back Biden-era green energy subsidies.
The amendment was introduced late on May 21 and swiftly passed a key House committee, though Democrats complained they hadn’t been given enough time to review the deal. Rep. Jim McGovern, the top Democrat on the Rules Committee, said he was unclear on the full impact of the changes after nearly 20 hours of debate.
Lawmakers plan to vote on the bill as early as the evening of May 21 or the following morning. The Republicans can afford to lose only three votes to secure passage in the House before the bill moves on to the Senate and, eventually, the president.
Not all Republicans are fully on board. For example, Rep. Andrew Garbarino of New York voiced dissatisfaction with the green energy tax credit cuts, signaling some resistance remains within the party.
The day’s events included a White House meeting where former President Trump urged GOP lawmakers to support the plan. The Office of Management and Budget emphasized the stakes, warning, “Failure to pass this bill would be the ultimate betrayal.”
With negotiations continuing and the clock ticking, the Trump tax bill’s future now hangs on whether the GOP can unite behind these latest compromises.
