Some members said they were close to agreement after the meeting, though holdouts remain.
President Donald Trump met with House Republicans on May 20 to urge unified action on the budget reconciliation bill that is the foundation for his second-term agenda.
Trump’s message to Republicans was a call to action, according to Rep. Dusty Johnson (R-S.D.).
“We all have tinkered enough. It is time to land the plane,” Johnson told reporters.
Rep. Nick LaLota (R-N.Y.) said, “Everybody get in a room and figure it out for the country and for your business, that’s what I took from it.”
The bill has highlighted the rift between fiscal conservatives and moderates within the Republican conference, who have been at odds over changes to the Medicaid program and a possible increase in federal tax deductions for state and local taxes, known as SALT.
Trump hinted at his preference in a pre-meeting press conference, saying, “We don’t want to benefit Democrat governors,” a reference to the SALT deduction, which benefits wealthier people concentrated in the Northeast and the West Coast.
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Trump appeared to be saying he didn’t want to increase a federal tax deduction that would disproportionately benefit states with high taxes.
The current cap on federal income tax deductions for state and local taxes is $10,000.
The current version of the bill raises the cap to $30,000, but some members would like it to be higher still.
“As it stands right now, I do not support the bill,” said Rep. Mike Lawler (R-N.Y.), who favors a higher cap. Lawler said his constituents pay some of the highest property taxes in the country.
During the meeting, Trump repeated his desire to make no cuts to Medicaid other than rooting out fraud and waste, members said.
The current version of the bill includes no direct cuts to Medicaid spending but does impose a work requirement on some beneficiaries. The fiscal conservatives have asked for Medicaid work requirements to begin in 2027 rather than in 2029.
When asked what he’s planning to tell fiscal hawks who want to delay the bill over insufficient spending cuts, Trump replied: “I’m a bigger fiscal hawk—there’s nobody like me.”
Also under discussion is the timing of the phase-out of certain energy tax credits included in the Inflation Reduction Act.
The issue caused divisions within the House GOP caucus, as moderates, including Reps. Andrew Garbarino (R-N.Y.) and Mariannette Miller-Meeks (R-Iowa), have balked at cutting tax credits for “shovel-ready” projects that depend on them.
Members told reporters that Republicans appeared closer to reaching an agreement after the meeting with Trump.
“He’s a unifier,” Rep. Clay Higgins (R-La.) told reporters. “He’s completely confident that we’re going to get the job done.”
Higgins said he agreed that a deal would come soon but declined to speculate on the timing.
Rep. Tim Burchett (R-Tenn.) was more optimistic of a speedy resolution.
“We’re two and a half minutes out, Baby,“ he said. ”We’ve got to make a decision, and we will.”
A cadre of fiscal conservatives held up the bill in the Budget Committee on May 16 over concerns that it did not do enough to cut spending.
The four—Reps. Chip Roy (R-Texas), Josh Brecheen (R-Okla.), Ralph Norman (R-S.C.), and Andrew Clyde (R-Ga.)—then voted present in a late-night committee meeting on May 18, allowing the bill to proceed.
House Republicans were expected to unveil a compromise version of the bill later on May 20, which is set to be considered by the House Rules Committee starting at 1 a.m. on May 21.
Recommendation by the Rules Committee is the last step before consideration by the full House of Representatives.
“The question is, is this legislation better than the status quo?” Rep. Mario Diaz-Balart (R-Fla.) said. “The answer to that is yes.”
When asked whether he was ready to commit to voting for the legislation, Rep. Eric Burlison (R-Mo.) said, “I need to look through the bill.”
Joseph Lord contributed to this report.
