U.S. President Donald Trump's sweeping tax-cut bill, which had been stalled for days by Republican infighting over spending cuts, won approval from a key congressional committee on Sunday in a rare victory for Trump and House Speaker Mike Johnson.
At an unusual Sunday night session, four hardline Republican conservatives on the House Budget Committee, who had blocked the legislation on Friday, allowed the bill to move forward as they pressed for deeper spending cuts in closed-door talks with Republican leaders and White House officials.
"We've made progress this weekend ... but we didn't get nearly far enough," Representative Chip Roy, one of the four hardliners, told reporters after the panel approved the bill.
A possible vote on passage in the House of Representatives could take place later this week.
Nonpartisan analysts say the bill would add $3 trillion to $5 trillion to the nation's $36.2 trillion in debt over the next decade. Moody's cited the rising debt, which it said was on track to reach 134% of GDP by 2035, for its decision on Friday to downgrade its U.S. credit rating.
The measure would extend Trump's 2017 tax cuts, his signature first-term legislative achievement, reduce taxes on some tips and overtime income - both campaign promises - boost defense spending and provide more funds for his border and immigration crackdown.
The hardliners want bigger cuts to the Medicaid healthcare program for lower-income Americans and the complete repeal of green tax credits implemented by Democrats.
The budget panel's approval sends the legislation onto the House Rules Committee, which will consider amendments to change the legislation as it prepares for a floor vote on passage. Johnson is pushing to get full House approval before the U.S. Memorial Day holiday on May 26.
Another hardliner, Representative Ralph Norman, said Republican leaders were negotiating changes to proposed Medicaid work requirements. But he also wanted a larger reduction in federal medical support for able-bodied beneficiaries.
Trump's Republicans hold a 220-213 majority in the House and are divided over how deeply to slash spending to offset the cost of the tax cuts.
Source: Reuters
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