Johnson told reporters that negotiators had reached an agreement on deductions for state and local taxes – a major issue for Republican lawmakers from New York and California, who are critical to his narrow majority – but hardliners continue to argue the bill does not sufficiently cut spending.
“There is a chance for a vote today,” Johnson said.
The gate-keeping House rules committee at around 1am EDT (0500 GMT) began to debate on a measure that is estimated to add trillions to the nation’s US$36.2 trillion in debt. Johnson had earlier expressed hope of a floor vote as early as Wednesday. Success in the House would set the stage for what is expected to be weeks of debate in the Senate.
US stocks were slightly lower on Thursday, while yields on federal government bonds rose, as investors showed signs of concern about the nation’s growing debt.
Republicans, who control both chambers of Congress, are waiting for their leadership’s overall amendment package to the bill that is meant to coalesce the party’s sparring factions. Democrats have also proposed more than 500 amendments.
If the legislation is passed by Congress, it would reduce some health and food benefits for low-income Americans, cancel green-energy programmes and provide tens of billions of dollars for immigration enforcement.
Trump huddled with Republican lawmakers on Tuesday to try to persuade holdouts to get in line on what he calls a “big, beautiful bill,” but the visit failed to sway the wide array of lawmakers who object to specific features.
Johnson has little room for error, as his party holds a narrow 220-212 majority and a handful of “no” votes from his side could scuttle the bill, which Democrats say favours the wealthy and cuts to needed social programs.
The bill would extend the 2017 tax cuts that were Trump’s signature first-term legislative achievement, and also add tax breaks on income from tips and overtime pay that were part of his populist push on the campaign trail last year. Nonpartisan analysts say it could add US$2 trillion to US$5 trillion to the federal debt.
“Failure is not an option in getting this done,” representative Jason Smith of Missouri, the Republican chairman of the House tax-writing committee, said during the debate on Wednesday, adding that “Americans voted for an America where workers and families will thrive again, Main Street and rural towns will grow again, and America wins again.”
Democrats said the bill disproportionately benefits the wealthy and cuts programmes needed by working families.
“We’re going to ask Americans to finance tax cuts for billionaires on the national debt – on the credit card,” said representative Gwen Moore, a Democrat on the tax-writing committee. “Deficits aside, this bill is ugly because it is ultimately a betrayal of the contract that we have made with the American people, and especially to our babies and to our working people.”
Debt ceiling
The Medicaid health programme for low-income households has proven to be a major sticking point, with fiscal hawks pushing for cuts to partly offset the cost of the bill’s tax components, which moderate Republicans say would hurt voters whose support they will need in the 2026 midterm congressional elections.
The bill also faces objections from a handful of centrist Republican lawmakers from high-tax states, including New York and California, who are pushing to expand a proposed US$30,000 cap on deductions for state and local taxes.
Trump is pushing for unanimous support from Republicans, and said on Tuesday that the holdouts could be drummed out of the party.
The bill would raise the nation’s debt ceiling by US$4 trillion. Lawmakers must act to address that limit by this summer or risk triggering a devastating default.
Credit rating firm Moody’s last week stripped the US government of its top-tier credit rating, citing the nation’s growing debt.
If the package passes the House, it would then head to the Senate, where Republicans hold a 53-47 majority. That would not be expected until next month, as members of Congress are preparing to leave Washington next week for a week-long break.