The White House's pressure fails to mend party rifts, hindering progress of the tax cut bill.

On May 22,fxpro crude oil the U.S. White House intensified pressure on Republican lawmakers, urging the swift passage of President Trump's signature tax cut bill and issuing a stern warning that any obstruction would be seen as "the ultimate betrayal." Despite some legislative progress, conservative opposition within the Republican Party continues to grow, posing significant uncertainty for the bill.

In a memorandum supporting the bill, the White House Office of Management and Budget stated, "The House should immediately pass the tax reform bill to demonstrate to the American people their firm commitment to their promises. President Trump has always been true to his word."

To advance the bill, House Speaker Mike Johnson announced he had reached an agreement with high-tax state lawmakers to raise the "State and Local Tax" (SALT) deduction limit to $40,000 to win over some previously opposing lawmakers. However, this compromise did not quell the dissatisfaction among hardliners.

Conservative lawmakers accused the Republican leadership of failing to deliver on previous policy promises made by the White House, particularly on Medicaid cuts and the cancellation of green energy tax incentives. Maryland Representative Andy Harris revealed there had been "late-night deals" with hardliners, including significant Medicaid budget cuts and the removal of clean energy incentive policies. He stressed, "The Speaker has no authority to make such promises."

The White House denied reaching any agreement with conservatives. An official stated the White House only listed a range of acceptable policy options and clearly informed them they must secure middle-ground support on their own. With the Republican House governing by a slim margin and internal divisions, coordination challenges are apparent.

Trump and Johnson were scheduled to meet with some far-right lawmakers at the White House at 3 p.m. on Wednesday, trying to push internal deals. However, Texas conservative Representative Chip Roy warned that the current stage is "far from success."

The Freedom Caucus emphasized that they do not oppose the overall direction of tax cuts but want to add budget cuts within the existing framework, curb Medicaid "abuse," and immediately eliminate green energy-related exemptions. The House Republican leadership is considering advancing the effective date for Medicaid work requirements from the originally planned 2029 to 2026 to appease conservatives.

However, this adjustment could have political repercussions. Some Republican lawmakers representing swing districts worry that this move might be attacked by Democrats as cutting medical benefits for low-income groups in the midterm elections. Additionally, pushing this measure through the Senate will also face strong opposition.

Mike Lawler, a moderate Republican congressman from New York, said in an interview on Wednesday morning that although there are still "technical details" to handle, he is "cautiously optimistic" about reaching an agreement later in the day.

As of now, the fate of the tax cut bill remains full of variables. The balancing and divisions within the Republican Party complicate its progress, and whether this bill, seen by Trump as a core economic agenda, can finally be passed by the House remains to be seen, depending on whether effective compromises can be reached between the White House and Congress.

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