GOP Senators Threaten To Block Trump's Tax And Spending Bill Over Deficit, Medicaid Cuts And Debt Ceiling Hike

Republican senators are mounting resistance to President Donald Trump’s sweeping “One Big Beautiful Bill,” citing deficit increases and insufficient spending cuts as the $3.8 trillion package faces uncertain Senate passage despite narrow House approval.

What Happened: Sen. Ron Johnson (R-Wis.) warned Sunday that GOP resistance could halt the legislation unless significant changes are made, as reported by ABC News. “The first goal of our budget reconciliation process should be to reduce the deficit. This actually increases it,” Johnson told CNN’s “State of the Union,” urging deeper spending cuts to pre-pandemic levels.

“I think we have enough to stop the process until the president gets serious about spending reduction and reducing the deficit,” Johnson stated.

Sen. Rand Paul (R-Ky.) told Fox News Sunday he won’t support the bill unless the debt ceiling increase is removed, calling proposed spending cuts “wimpy and anemic.” Paul said the debt ceiling provision would “explode deficits.”

Speaker Mike Johnson defended the package on Sunday talk shows, telling CBS’s “Face the Nation” it represents “jet fuel to the U.S. economy” and the “largest cut in spending in at least 30 years.” The House passed the bill 215-214 on Thursday, requiring reconciliation procedures that need only a simple majority Senate.

See Also: Steve Jobs Wasn’t Happy Unless Things Were ‘Insanely Great’ And That’s Why This Tech CEO Is Passionate About Moving ‘Mental Boundaries’ That Withhold Perfection

Why It Matters: The Congressional Budget Office estimates that the legislation would add $3.8 trillion to the federal deficit and cut Medicaid subsidies by $698 billion due to new work requirements. As a result, more than 8 million Americans could lose Medicaid coverage, with the lowest-income households projected to see a 2% decline in resources by 2027.

Following the House’s passage of the bill, 30-year Treasury yields surged to 5.15%—the highest level since October 2023—as investors sought greater returns to offset rising fiscal risk. Defense contractors such as Lockheed Martin Corp. LMT and RTX Corp. RTX stand to gain from the bill's expanded military spending provisions.

Senate modifications would require the bill to return to the House, where Speaker Johnson maintains “very delicate equilibrium” among divided Republicans.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Joey Sussman / Shutterstock.com

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