LEILA FADEL, HOST:
President Trump met with House Republicans in the Capitol yesterday, urging them to get behind his massive tax and immigration bill or risk a tax increase.
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PRESIDENT DONALD TRUMP: I mean, what Republican could vote for that to happen? Because they wouldn't be a Republican much longer. They would get - they would be knocked out so fast.
STEVE INSKEEP, HOST:
House Speaker Mike Johnson wants a vote as soon as today, but as always, he needs almost every Republican on his side in order to pass it.
FADEL: NPR's Deirdre Walsh is at the Capitol, and she joins me now. Good morning, Deirdre.
DEIRDRE WALSH, BYLINE: Good morning, Leila.
FADEL: So did Trump's pep rally with House Republicans build the support he needs for that bill?
WALSH: He did sway some who praised his sales job, but the president failed to convince a significant bloc of Republican holdouts. There are moderates who represent districts with high state and local taxes who want a bigger tax break for their constituents. There are conservatives worried about ballooning deficits and say this bill does not go far enough to slash spending and deal with the deficit. The speaker spent the day and overnight hours trying to negotiate with these factions. And remember, he can only lose three votes, and we already know one member, Tom Massie of Kentucky, is a hard no.
FADEL: OK, so did leaders agree to any of these demands to move some of these holdouts?
WALSH: Potentially. Overnight, a key committee met to set the parameters to start debate on the House floor, and that panel is still meeting. The speaker said when they started around 1 a.m., they were close to a deal, but we haven't seen any details yet. Leaders are expected to increase the amount of that state and local tax deduction to address the concerns of some moderates they need. Conservatives say there's been some progress on more savings. But, Leila, it's like Whac-A-Mole, you agree to one change from one group, and it could mean losing support from another group.
FADEL: So, Deirdre, talk about the major components in the bill and what their impact would be.
WALSH: So the tax cuts are really the central plank in the bill. The bill permanently extends the 2017 tax cuts that are going to expire at the end of December. It adds new tax breaks like no tax on overtime, no tax on tips, things that Trump campaigned on. Those tax breaks expire in four years after Trump leaves office. The bill has roughly 1 1/2 trillion in spending cuts, and a big chunk of those come from changes to Medicaid. That's the healthcare program for elderly, low-income, and disabled. It adds work requirements for adults without dependence on Medicaid. It changes eligibility rules that can mean people end up getting removed from the roles.
Trump said during his visit to the Capitol there wouldn't be any cuts, and the measure is focused on cutting waste, fraud and abuse. But the Congressional Budget Office found that at least 8.6 million people could lose healthcare coverage due to these changes. A CBO analysis that came out late last night found out that the poorest, the bottom 10% of Americans, would see their household resources drop due to the policy and tax changes in this package, while the top 10% would get a bump in income. And we should also note that the bill makes cuts to food assistance programs, and that could impact millions of children who rely on that program for school lunches.
FADEL: So if this bill gets through the House, what are the prospects in the Senate?
WALSH: I mean, there are going to be changes in the Senate. Senate Majority Leader John Thune said Senate Republicans want to see further spending cuts to reduce the deficit. Other Republicans in the Senate are critical of the Medicaid changes in this House package, and the Treasury Department is going to run out of money to pay its bills this summer. So lawmakers included a $4 trillion increase in the debt ceiling to avoid a default. But for right now, House Republican leaders are still negotiating to try to get the votes to get it through the House.
FADEL: That's NPR's Deirdre Walsh. Thank you, Deirdre.
WALSH: Thanks, Leila. Transcript provided by NPR, Copyright NPR.
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