Republicans Wrestle with Budget Gaps in Trump's Signature Tax Bill

Top U.S. Republicans are in a fierce battle to address a significant budget shortfall in their expansive tax-cut and spending legislation. With President Trump's July 4 deadline looming, their efforts have been hampered by the Senate parliamentarian's refusal to allow certain spending cuts, forcing a re-evaluation of key aspects of the plan. The legislation, seen as a cornerstone of Trump's second term, includes contentious parts like the Medicaid provider tax, which Senate Republicans fear threatens rural hospitals.

Despite these hurdles, Trump expressed understanding that the bill might not pass by his preferred deadline, acknowledging that while passing by Independence Day would be ideal, the delay is not disastrous. Key Republican leaders like House Speaker Mike Johnson and Senate Majority Leader John Thune remain hopeful but acknowledge the potential for additional delays.

Later this summer, Congress faces a critical deadline with the need to raise the national debt ceiling, risking a financial default if unresolved. Alongside Medicaid cuts, the legislation proposes tightening student aid and reducing aid to sanctuary cities, attempting to balance the $1.3 trillion in spending cuts against $3.7 trillion in tax reductions. Despite obstacles, Republican unity is essential to navigate the legislative process amidst unified Democratic opposition.

(With inputs from agencies.)