Republican Rift: Trump's Tax Bill Faces Backlash

In a significant political setback, hardline Republicans in the U.S. House of Representatives have blocked President Donald Trump's tax bill, citing concerns over spending cuts. This occurred hours before Moody's downgraded the U.S. federal government's credit rating, highlighting fiscal management challenges.

Moody's projections indicate a potential increase in the national debt to 134% of GDP by 2035. The Republican-controlled House Budget Committee, however, has expressed resistance to the bill, which seeks to eliminate taxes on tips and overtime income, boost defense, and fund border security enhancements.

Despite the initial rejection, efforts will continue, with the committee planning a rare Sunday session to resolve differences. Demanding deeper Medicaid cuts, hardline conservatives signal ongoing clashes with moderates over balancing fiscal convention and the party's congressional majority stability.

(With inputs from agencies.)