House Speaker Mike Johnson said there is still more work to be done on the tax bill|NASA HQ|CC BY-NC-ND 2.0

President Donald Trump’s massive tax and spending package cleared a key hurdle Sunday night after the House Budget Committee advanced the bill. A House vote could take place this week.

Speaker Mike Johnson said there is still more work to be done on the tax bill. His comments come as a few ultraconservatives blocked the bill last week. However, accelerating Medicaid work requirements and phasing out clean energy tax breaks sooner were able to win them over.

The plan would cut millions from the Medicaid program, but nearly 5 million Americans will lose their health coverage, per Energy and Commerce Committee Republicans.

It could wind down EV tax credits as early as this year, rather than the original clean energy phase-out set for 2029.

The legislation would also include $4 trillion in tax cuts. The bill consists of a temporary suspension of taxes on tips and overtime. It would permanently lower the tax rates for individuals, which were put into place in 2017.

But hurdles remain
GOP divisions persist over state and local tax deductions and clean energy incentives. Republicans from high-tax states like New York and California threaten to oppose the bill unless SALT deduction caps are raised.

Even if passed in the House, the bill faces further hurdles in the Senate, where hardliners demand deeper Medicaid cuts.