Republicans Face Major Hurdles in Rewriting Trump's Tax Legacy

Republicans in the U.S. Congress are working to navigate internal divisions over proposed cuts to Medicaid and green energy to fund a tax-cut bill by July 4. The plan aims to extend the 2017 Tax Cuts and Jobs Act, accompanied by new spending on defense and immigration, raising significant budget concerns.

Republicans in Congress are tackling significant challenges to fund a tax-cut bill by July 4, focusing on cuts to Medicaid and green energy initiatives. These efforts mark a major hurdle during Donald Trump's presidency as they strive to extend policies from the 2017 Tax Cuts and Jobs Act.

Treasury Secretary Scott Bessent expressed optimism after meeting with Republican leaders, noting that both the House and Senate are moving in alignment. The proposed legislation not only targets tax reforms but also plans to enhance areas like immigration enforcement and military strength, stirring considerable budget implications.

As Republicans navigate opposing views within the party, concerns about the impact of Medicaid cuts and environmental policies persist. While promises have been made to protect certain benefits, reaching a consensus that satisfies hardliners and moderates proves to be a formidable challenge within tight fiscal constraints.

(With inputs from agencies.)