Trump tax bill debate sees critical hurdle cleared

Trump tax bill debate sees critical hurdle cleared
House debated late into the night ahead of final vote.
JUL 03, 2025
By  Bloomberg

by Erik Wasson, Steven T. Dennis, Ken Tran and Jack Fitzpatrick

House Republicans overcame a critical procedural hurdle to advance Donald Trump’s massive tax and spending package early Thursday, holding a key vote open for hours past midnight as the president and his allies worked to win them over.

The House finally voted 219-213 to essentially move toward a final vote on Trump’s “big beautiful bill,” which includes tax cuts Republicans campaigned on, a phase-out of Biden-era clean energy incentives and funding for the president’s crackdown on illegal immigration.

Debate began immediately on the legislation, setting up a potential final vote for later in the morning in Washington, ahead of Trump’s self-imposed July 4 deadline.  

Even with the extended delay, the GOP’s ability to get past the procedural vote bodes well for final passage of Trump’s signature legislation. Speaker Mike Johnson — who repeatedly voiced optimism about the legislation even as the overnight hours ticked away — can only afford three defections in the tightly divided House. 

“We have the votes,” Johnson told reporters just after 3 a.m. on Thursday. “We’re still going to meet the deadline.” 

Despite Republicans controlling both the US House and Senate, Trump’s signature legislation ran into resistance from cost-conscious conservatives as well as swing-district moderates, who worry the measure cuts too deeply into Medicaid and other safety-net programs. 

‘Costing You Votes’

The president voiced his frustration with the delay shortly after midnight Washington time, more than two and a half hours after the vote began. 

“Largest Tax Cuts in History and a Booming Economy vs. Biggest Tax Increase in History, and a Failed Economy,” Trump wrote in a Truth Social post. “What are the Republicans waiting for??? What are you trying to prove??? MAGA IS NOT HAPPY, AND IT’S COSTING YOU VOTES!!!”

In the end, Johnson lost just one Republican, Representative Brian Fitzpatrick of Pennsylvania. 

The House vote in question was on the rule governing debate for the underlying tax measure. Historically, those are routine, party-line votes. However, in a House closely divided they can also become a venue for opponents to flex their leverage and seek to win concessions.

As House leaders furiously cajoled the holdouts and rebels, Johnson vowed to keep pressing through the night.

“I’ll keep it open for as long as it takes to make sure we’ve got everybody here accounted for and all the questions answered,” Johnson said in an interview on Fox News. 

Delivering the bill

Trump and Johnson had projected confidence ahead of the critical procedural vote. 

“We had GREAT conversations all day, and the Republican House Majority is UNITED, for the Good of our Country, delivering the Biggest Tax Cuts in History and MASSIVE Growth,” the president said in a post on Truth Social.

Republican Representative Warren Davidson of Ohio, a fiscal conservative who voted against the initial House version of the legislation in May, eventually agreed to back the bill. 

“This bill isn’t perfect, but it’s the best we’ll get,” Davidson said in a social media post before the vote. 

A key issue for many reluctant Republicans is cost. The $3.4 trillion Senate bill adds more to the deficit than an earlier House version which clocked in at $2.8 trillion, according to the Congressional Budget Office. 

‘Time to pass’

Any changes to the measure made to win over restive House Republicans would have forced the Senate to vote again on the bill, blowing Trump’s July 4 deadline, and adding weeks of potential delay to his flagship measure. 

Instead of entertaining changes to the bill text itself, the White House instead explored with Republican lawmakers if their priorities could be addressed in other ways, such as by executive actions or in future legislation. 

Trump repeatedly blasted Republican lawmakers resisting the legislation as “grandstanders” and threatened to oppose reelection of members who block his agenda.

“We are going to get this done. Trump is the best closer,” Representative Richard Hudson of North Carolina, one of the House’s vote-counting whips, said. “The White House has made it clear we are done negotiating. It’s time to pass the bill.”

 

Copyright Bloomberg News

Latest News

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

Corporate pension surpluses continue to grow, second quarter stats reveal
Corporate pension surpluses continue to grow, second quarter stats reveal

Three separate reports support positive outlook for plans.

Raymond James hauls Ameriprise advisors managing $1.1B in New York
Raymond James hauls Ameriprise advisors managing $1.1B in New York

Elsewhere, Sanctuary Wealth recently attracted a $225 million team from Edward Jones in Colorado.

Cetera debuts new alts allocation portfolios for accredited investors
Cetera debuts new alts allocation portfolios for accredited investors

The giant hybrid RIA is elevating its appeal to advisors with a curated suite of alternative investment models, offering exposure to private equity, private credit, and real estate.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.