House Republicans overhaul Trump’s sweeping policy bill to win over rebels, risking backlash over medicaid cuts

In a late-night drama that stretched from 1 a.m. to nearly 11 p.m., Republicans on the House Rules Committee advanced a colossal Trump-endorsed domestic policy package after unveiling major amendments to sway internal dissenters and tee up a full House vote.

The bill, central to President Donald Trump’s legislative comeback, had faced resistance from opposing corners of the GOP — fiscal hardliners and moderates from high-tax states. But after intense negotiations, a 42-page amendment was unveiled, shifting key deadlines, modifying tax caps, and even renaming the bill’s symbolic savings accounts.

The committee voted along party lines, 8–4, pushing the legislation one step closer to the floor. Speaker Mike Johnson, juggling a perilously thin three-seat majority, had hoped to hold the vote Wednesday night or early Thursday. Whether he can hold his fractious caucus together remains uncertain.

Medicaid Work Rules Moved Forward

The most controversial shift involves the Medicaid work requirement, a policy victory for the far-right House Freedom Caucus. The updated language demands that able-bodied adults aged 18 to 64 work or volunteer to receive Medicaid, starting not in 2029, as originally proposed, but by the end of 2026.

States can even implement the rules earlier, if they wish.

Critics warn this could strip millions of Americans of healthcare before the next midterm or even the 2028 presidential election. Freedom Caucus chair Andy Harris, R-Md…, however, hailed the change as a crackdown on “fraud, waste, and abuse.”

To sweeten the deal for red states that rejected Medicaid expansion under the Affordable Care Act, the bill offers enhanced federal payments, a bid to keep them from reversing course.

Green Energy Cuts Accelerated

In another nod to conservatives, Republicans moved to gut Biden’s green energy tax credits even faster than planned. Wind and solar tax breaks would now expire for any project started 60 days after the bill is enacted or after 2028, whichever comes first.

“We tightened the language with the White House’s help,” said House Majority Leader Steve Scalise. “Trump doesn’t want these clean energy subsidies lingering — and now, they won’t.”

SALT Cap Raised to Appease Blue-State Republicans

To appease swing-district Republicans from states like New York, the amendment raises the federal cap on state and local tax (SALT) deductions to $40,000 for individuals earning under $500,000. The previous version offered only $30,000.

Rep. Nick LaLota, R-N.Y., a leading voice for the change, called the increase “non-negotiable,” joking, “At $30,000, even my own mother wouldn’t vote for me.”

Both the cap and the income threshold will index upwards by 1% annually for a decade.

MAGA Accounts Get a Trump Makeover

In a symbolic flourish, Republicans renamed the proposed child savings schemes from “MAGA Accounts” to “Trump Accounts,” aligning branding more closely with the former president. The change appears in the very first line of the manager’s amendment.

Though trivial compared to Medicaid or taxes, the rebrand reflects Trump’s personal imprint on nearly every clause of the bill.

What’s Next?

Despite the clearing committee, the path to final passage remains fraught. Blue-state Republicans could still defect if the SALT relief doesn’t go far enough. Freedom Caucus members may demand even deeper spending cuts. And the Medicaid changes could invite a wave of public backlash.

Speaker Johnson has yet to confirm a firm vote time, but the clock is ticking.

Whether this retooled package unifies Republicans or exposes deeper cracks will be clear soon, and with Trump’s re-election bid looming, the stakes could hardly be higher.