Trump’s Tax Bill Faces GOP Revolt Over Medicaid, SALT Cuts

Introduction

President Donald Trump’s ambitious One Big Beautiful Bill Act has hit significant roadblocks within his own party. Though the 1,116-page tax and spending package narrowly passed the House Budget Committee, it faces internal resistance over cuts to Medicaid, changes to SNAP, and the controversial SALT deduction cap. With a ballooning national debt topping $36 trillion, Republicans are now divided over how to shrink government spending without alienating key voter blocs.

1. Deeper Spending Cuts Divide the GOP

The bill includes an estimated $4.9 trillion in tax breaks, funded in part by rolling back green energy incentives and making cuts to social programs like Medicaid. But five Republicans either opposed or withheld their support, arguing the bill doesn’t go far enough to address fiscal irresponsibility.

Texas Representative Chip Roy voiced his dissatisfaction, stating, “The bill does not yet meet the moment.” Conservatives like Roy are pushing for deeper, immediate spending cuts to prevent further escalation of the national debt.

Rating agencies are taking notice. Moody’s downgraded the U.S. credit outlook due to unsustainable debt levels.

2. Medicaid Work Requirements Spark Controversy

A core provision of the bill requires able-bodied adults on Medicaid to work at least 80 hours per month starting in 2029. However, hardline Republicans want those work requirements implemented immediately.

Additional provisions would deny Medicaid access to undocumented immigrants and repeal green energy tax credits. In contrast, Senator Josh Hawley voiced his opposition in a New York Times op-ed, warning that Medicaid cuts would be “morally wrong and politically suicidal.”

3. SALT Deduction Cap Irks Coastal Republicans

One of the more unexpected sources of friction is the proposed adjustment to the State and Local Tax (SALT) deduction. The bill raises the deduction cap from $10,000 to $30,000 for joint filers, but lawmakers from high-tax states like New York and California say it’s not enough.

The “SALT Caucus” is lobbying for a $62,000 cap for individuals and $124,000 for couples. A compromise cap of $40,000 for singles and $80,000 for joint filers is reportedly being discussed.

New York Republicans called the current offer “insulting” in a joint statement earlier this month.

4. SNAP Reforms Could Affect 42 Million Americans

The bill proposes sweeping changes to the Supplemental Nutrition Assistance Program (SNAP). Currently serving over 42 million Americans, SNAP would require states to cover 5% of benefit costs and 75% of administrative expenses under the new plan.

Work requirements would be extended to recipients up to age 64, rather than the current 54. Democrats slammed the proposal, with DNC Chair Ken Martin calling it “a slap in the face” to working families.

Meanwhile, Republicans say the move would cut government waste and promote workforce participation. The House Agriculture Committee already approved $300 million in SNAP cuts to fund tax breaks.

According to USDA data on SNAP, around 12% of Americans receive food assistance—many in red states like Alabama and Oklahoma.

Conclusion

Trump’s tax bill, while touted as “big and beautiful,” has exposed deep ideological fractures in the Republican Party. Disagreements over fiscal responsibility, social safety nets, and tax deductions threaten to derail a cornerstone of Trump’s 2025 economic strategy. As the bill advances to the Senate, the political fight over Medicaid, SNAP, and SALT is far from over.

For more context on America’s rising debt and the fiscal path forward, read our deep dive on the US budget crisis.