GOP Aims for July 4th Deadline on Trump’s Major Policy Bill Amid Tax and Medicaid Tensions

Republican leaders are setting their sights on a new deadline to pass President Donald Trump’s massive policy agenda into law — the Fourth of July. Nothing says patriotism quite like a race to legislate before the fireworks start.

If all goes to plan, Trump could get his wish for a "big, beautiful bill" to sign on July 4th, the 250th birthday of the United States. House Ways & Means Committee Chairman Jason Smith made it clear: the goal is for the president to sign this sweeping legislation on Independence Day. But let’s be real, Congress loves a good deadline almost as much as it loves pushing them.

The bill itself is no small feat. Republicans are wrangling over spending cuts — at least $1.5 trillion worth — to bankroll Trump’s signature tax policies. Differences over clean energy and Medicaid are proving especially thorny. Some lawmakers want to slash Medicaid, while others, especially those from blue states, are ringing alarm bells about cutting too deep. Meanwhile, the committee handling these negotiations is tasked with finding a staggering $880 billion in cuts.

Trump’s plan includes extending the 2017 Tax Cuts and Jobs Act and eliminating taxes on tips, overtime pay, and retiree Social Security. GOP leaders warn that failing to extend these cuts could lead to a tax hike of over 20% for millions of families — the kind of math that keeps accountants and voters up at night.

While House Speaker Mike Johnson is targeting Memorial Day to pass the bill through the House, he’s not ruling out the July 4th deadline for Trump’s signature. Some critics inside the GOP have called out the moving deadlines, joking that if Congress misses this one, the next federal holiday isn’t until September. Congressional time is definitely its own universe — where holidays are more than just days off but actual legislative benchmarks.

This rushing isn’t just about taxes. The U.S. could also face a credit default this summer if lawmakers don’t act on the debt limit in time, raising the stakes for both domestic and global markets.

Republicans are using the budget reconciliation process, which means they only need a simple Senate majority to bypass Democratic opposition — handy when you want to move fast and break things.

Seven out of eleven House committees have finished their work, but three big ones — Ways & Means, Agriculture, and Energy & Commerce — have hit delays. The green energy fight is still burning hot, with some Republicans wanting to preserve Biden-era tax credits and others insisting these incentives are just government handouts that jeopardize America's energy security.

Negotiations are expected to continue this week, with the Senate eyeing a similar timeline but warning that reconciliation is a trickier beast in their chamber. Senate Majority Leader John Thune hinted that while the House hopes to finish by Memorial Day, the Senate may take a little longer — because nothing says "legislative urgency" like a summer deadline that keeps moving.