House GOP Faces Tax Dilemma Amid Medicaid Funding Talks
Divided House Republicans negotiate Medicaid funding and consider Trump’s proposed tax hikes for the wealthy to offset budget cuts.


Summary
House Republicans remain divided over Medicaid funding cuts as moderates resist reductions while conservatives push for extensive budget cuts. Speaker Mike Johnson confirmed some proposals, including cutting federal reimbursements, have been rejected. The recent intervention from President Trump, who urged Johnson to consider increases in the top tax rate for earners above $2.5 million and closing tax loopholes, complicates negotiations. As lawmakers face the urgent need to fund both Medicaid and tax cuts amid public opposition to cuts, negotiations intensify, aiming for a reconciliation bill ready for a House vote before Memorial Day.
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