GOP leaders find new major holiday deadline for Trump's 'big, beautiful bill' amid Medicaid, tax divisions

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Trump, GOP push for major reduction of government spending in new budget plan

Fox News senior congressional correspondent Chad Pergram has the latest on President Donald Trump and Republican lawmakers working to reduce government spending despite criticism from Democrats on ‘Special Report.’

Some Republican leaders are hoping they can pass a massive bill codifying President Donald Trump's agenda into federal law by the Fourth of July.

It means the sweeping policy overhaul could reach Trump’s desk for a signature by the 250th anniversary of the United States’ founding.

"I’ve said all along, my goal is, is for the president to sign this one big, beautiful bill on July 4th," House Ways & Means Committee Chairman Jason Smith, R-Mo., told "Fox News Sunday."

It comes as House Republicans struggle to reconcile differences on clean energy and Medicaid in talks to find at least $1.5 trillion in spending cuts to pay for Trump’s tax policies.

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Republican leaders are signaling they want a bill on President Donald Trump's desk by Fourth of July. (Getty Images)

Treasury Secretary Scott Bessent told reporters days earlier on Capitol Hill, "We’ve got three legs to the President’s economic agenda: trade, tax and deregulation, and we hope that we can have this tax portion done by Fourth of July."

Republican lawmakers are working on a multitrillion-dollar piece of legislation aimed at advancing Trump’s policies on tax, defense, energy, immigration, border security and at raising the debt limit.

Trump’s tax policies, a cornerstone of his platform and the costliest portion of the bill, include extending the 2017 Tax Cuts and Jobs Act (TCJA) and eliminating taxes on tips, overtime pay and retirees’ social security.

Republican leaders and tax hawks have warned that failing to extend TCJA by the time its provisions expire at the end of this year could result in a tax hike of over 20% for millions of families. 

House GOP leaders said in a letter to lawmakers dated April 5, "Immediately following House adoption of the budget resolution, our House and Senate committees will begin preparing together their respective titles of the reconciliation bill to be marked up in the next work period. As always, this will involve input from all Members and will keep us on track to send a bill to the President’s desk by Memorial Day."

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However, House Speaker Mike Johnson, R-La., has since somewhat walked that goal back, telling reporters he believes the House can finish its portion by Memorial Day.

"We are on track to pass the bill out of the House. As we've said from the very beginning, and get it over, to the next stage by Memorial Day," Johnson said during a press conference last week.

He was optimistic about beating the early July goal after meeting with Bessent and other top lawmakers last Monday, however.

"He says July 4 because that’s a big, big birthday for us. And everybody knows that," Johnson said of Bessent’s comments. "But I think – and I hope, and believe – that we can get it done sooner than that."

Treasury Secretary Scott Bessent floated the Independence Day deadline. (Getty Images)

A House GOP leadership aide told Fox News Digital that Johnson "stated his goal is to move the bill through the House by Memorial Day" and that it was "not in conflict" with sending a bill to Trump by July 4.

When asked if that goal was feasible, Rep. Mike Lawler, R-N.Y., told Fox News Digital, "It’s gonna have to be."

Others who spoke with Fox News Digital were more skeptical.

A senior House Republican aide told Fox News Digital, "Deadlines are so arbitrary in Congress. Passing the bill by Memorial Day was always a long shot, but moving the goalposts from Easter to Memorial Day to July 4 just shows weakness."

"We better stick with this one, because the next federal holiday isn’t until September!" the aide said.

Republicans are not only racing the clock on the TCJA deadline, but also the possibility of a national credit default. The U.S. is expected to run out of cash to pay its debts sometime this summer, according to several projections – a somewhat murky deadline based on a number of factors, including yearly tax filings.

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Hitting that date without acting on the debt limit would send domestic and global financial markets into turmoil.

Republicans are looking to move Trump’s agenda via the budget reconciliation process. By lowering the Senate’s threshold for passage from 60 votes to 51, it allows the party in power to sideline the opposition, in this case Democrats, while passing legislation focused on spending, taxes and debt.

After both the House and Senate passed budget "frameworks" earlier this year, the relevant committees named in the frameworks are working to write policy in line with the spending cut or surplus they are granted.

Seven of 11 House committees have completed their work so far. However, three critical panels – the committees on Ways & Means, Agriculture, and Energy & Commerce – had to delay initial tentative plans to advance their portions this week.

Republicans in blue states, who GOP leaders view as critical to keeping the majority, have raised alarms about cutting too deeply into Medicaid. It is under the jurisdiction of the Energy & Commerce Committee, which is tasked with finding $880 billion of the $1.5 trillion in spending cuts.

Negotiators have insisted they are only interested in going after waste, fraud and abuse in the system, but it has not stopped Democrats from accusing the GOP of trying to cut critical healthcare programs for millions of Americans.

Meanwhile, the committee is also going to have to decide on an ongoing battle between conservatives and blue state Republicans over whether to repeal some or all of the former Biden administration’s Inflation Reduction Act (IRA) green energy tax subsidies.

In March, 21 House Republicans signed a letter urging their colleagues to preserve the green energy tax credit.

"Countless American companies are utilizing sector-wide energy tax credits – many of which have enjoyed broad support in Congress – to make major investments in domestic energy production and infrastructure for traditional and renewable energy sources alike," they wrote.

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The anti-IRA Republicans, however, said in a letter last week that the U.S.' growing green energy sector was the product of government handouts rather than genuine sustainable growth.

"Leaving IRA subsidies intact will actively undermine America’s return to energy dominance and national security," they said. "They are the result of government subsidies that distort the U.S. energy sector, displace reliable coal and natural gas and the domestic jobs they produce, and put the stability and independence of our electric grid in jeopardy."

Negotiations are expected to continue this week.

When reached for comment on whether the Senate could meet the Independence Day goal, a spokesperson for Majority Leader John Thune, R-S.D., pointed Fox News Digital to a recent interview where he signaled openness to the idea.

"We have a similar target. And I think the House is, you know, they would like to, the speaker would like to have it out of the House by Memorial Day. And the Senate has a more complicated procedure that we have to go through when it comes to reconciliation that makes it harder and more complicated and takes a little bit longer time," Thune said.

"But there's been a ton of work done already, and we're working closely with our counterparts in the House on all the relevant authorizing committees that have been instructed."