Trump's Tax Bill Stumbles in Congress Amid Internal GOP Conflicts

President Trump's tax bill encountered an obstacle in Congress as hardline Republicans, insisting on further spending cuts, blocked its progress. The bill's potential to increase the federal debt strained its passage, prompting a credit downgrade from Moody's. Congressional divisions continue to challenge Trump's legislative agenda.

U.S. President Donald Trump's ambitious tax bill hit a significant roadblock on Friday, failing to pass a key procedural hurdle in Congress. Hardline Republicans, demanding additional spending cuts, opposed the measure, marking an unusual setback for Trump in a Congress under Republican control.

The bill, which aims to extend Trump's 2017 tax cuts and eliminate certain taxes, faced criticism for its potential to increase the federal debt by trillions, contributing to a downgrade of the U.S. credit rating by Moody's. The agency cited a lack of government effort to reduce spending.

The House Budget Committee, divided on the issue, postponed the bill's passage. While some Republicans see spending cuts as necessary, others worry about the potential impact on social safety nets. Discussions are set to continue, with a resolution possibly on the horizon before the Memorial Day deadline.

(With inputs from agencies.)