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"It is the biggest tax cuts for billionaires in American history paid for by throwing 13.7 million Americans off their healthcare coverage," said the panel's top Democrat, Rep. Brendan Boyle.
Multiple Republican "fiscal hawks" on Friday voted with Democrats on the U.S. House Budget Committee to block the GOP's budget reconciliation package—and while high-level negotiations are expected to continue, members were reportedly told they could go home.
"They couldn't agree on how many people to take healthcare away from in order to give billionaires a tax cut," said Rep. Pramila Jayapal (D-Wash.), a panel member, after the vote. "Embarrassing. We'll keep fighting to protect Medicaid and the American people."
The five Republicans who voted no were Reps. Josh Brecheen (Okla.), Andrew Clyde (Ga.), Ralph Norman (S.C.), Chip Roy (Texas), and Lloyd Smucker (Pa.)—though, unlike the others, Smucker changed his vote from yes to no for a procedural reason.
"To be clear—I fully support the One Big Beautiful Bill (OBBB). My vote today in the Budget Committee is a procedural requirement to preserve the committee's opportunity to reconsider the motion to advance OBBB," he explained on social media.
According toThe Hill, Smucker also said that "we're working through some remaining issues here, there are just a few outstanding issues I think everyone will get to yes, and we're going to... resolve this as quick as we can and hopefully have a vote, ideally on Monday, and we can advance this bill."
The House Freedom Caucus said on social media Friday that "Reps. Roy, Norman, Brecheen, Clyde, and others continue to work in good faith to enact the president's 'Big Beautiful Bill'—we were making progress before the vote in the Budget Committee and will continue negotiations to further improve the reconciliation package. We are not going anywhere, and we will continue to work through the weekend."
Friday's failed vote comes after various GOP-controlled panels advanced parts of the package this week, in the face of protests from Democratic lawmakers and constituents outraged that Republicans are trying to pass massive tax giveaways for wealthy individuals and corporations while adding $3.8 trillion to the national debt they claim to worry about and gutting programs like Medicaid that serve the working class.
"The House Budget Committee's vote is a necessary—but largely performative—step that bundles the 11 different bills Republicans have approved over the last few weeks through their policy committees, including the piece the tax-writing Ways and Means Committee advanced this week and the measure the Energy and Commerce Committee approved after an all-night markup of Medicaid policies forecast to strip healthcare coverage from more than 10 million people," Politicoreported.
As the Budget Committee's markup began on Friday, Ranking Member Brendan Boyle (D-Pa.) charged that "this is a big bill for billionaires."
Boyle continued:
Now, we will hear over the course of this hearing a vigorous debate, and frankly, there is a strong divide between Republicans and some other Republicans. There is also a divide between both sets of Republicans and this side of the dais, I can speak at least as to why it is every Democratic member will be voting no on the bill for billionaires.
Simply put, besides all of the other important issues involved in this bill, this is the overarching truth. It is the biggest tax cuts for billionaires in American history paid for by throwing 13.7 million Americans off their healthcare coverage.
Now, those aren't my claims, that is not subjective. The nonpartisan Congressional Budget Office just this week confirmed that at least 13,700,000 Americans will lose their healthcare if the GOP bill for billionaires becomes law. That is bad economics. It is unconscionable.
Several other Democrats have spotlighted the GOP's attempt to strip healthcare from millions of Americans in their critical comments about the megabill, which is backed by Republican President Donald Trump.
"This budget is disastrous and cruel, and we stopped it from moving forward," declared Rep. Becca Balint (D-Vt.), a committee member, on Friday. "Republicans have no mandate to rip away health care and food assistance from families."
Another panel member, Rep. Lloyd Doggett (D-Texas), said after the vote that "even some GOP recognized that this is an ugly lie atop a mountain of lies and dangerous trillions of additional national debt."
"They'll be back with another scheme next week, and we'll be ready to fight," he added. "Limiting this bill's benefits to 98% of Americans and denying them to Elon Musk and the 2% richest would cut this bill's cost in half and protect the healthcare of millions, which the GOP would otherwise deny."
"Today the organization being threatened by the government is Harvard, tomorrow it could be a community organization feeding the hungry or helping children with disabilities."
President Donald Trump's administration is reportedly considering plans to revoke Harvard University's tax-exempt status, a major escalation against the Ivy League institution that critics said marks just the start of a broader assault on nonprofits that refuse to bow to the White House's demands.
CNN was first to report Wednesday that the Internal Revenue Service—where Trump has installed an ally as interim commissioner—is weighing whether to yank Harvard's tax exemption, news that came a day after the president suggested on his social media platform that "perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting 'Sickness?'"
Earlier this week, the Trump administration froze over $2 billion in federal funding for Harvard after the university's president said the institution would not comply with the president's policy demands. Specifically, as The Harvard Crimsonreported, Trump called on Harvard to "derecognize pro-Palestine student groups, audit its academic programs for viewpoint diversity, and expel students involved in an altercation at a 2023 pro-Palestine protest on the Harvard Business School campus."
Alan Garber, Harvard's president, said in response that "no government—regardless of which party is in power—should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue."
Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee, warned in a statement Thursday that "if Trump gets away with weaponizing the tax system to target a political enemy, every American is at risk."
"The First Amendment and federal tax law make clear no president can raise a university's taxes because he doesn't like what they teach," said Wyden. "If this corrupt shakedown scheme stands, nonprofits from churches to temples to hospitals could be forced to echo Trump's MAGA line or see their taxes hiked. Any Republican who claims to believe in the Constitution and doesn't speak up is responsible for what happens next."
"We know this assault won't end with Harvard, so I will be fighting back—and I encourage every single American to stand up against it and make their voices heard."
Trump's attack on Harvard is part of a broader campaign of retribution against universities and other institutions and organizations that are unwilling to capitulate to his administration.
The Guardianreported last week that administration officials "have launched investigations into progressive and climate organizations, colleges, and recipients of government grants."
The Vera Institute of Justice, a nonprofit that fights mass incarceration, said Wednesday that the Elon Musk-led Department of Government Efficiency informed the group of "its plan to assign a DOGE team" to Vera "as part of its larger plan to assign DOGE teams to 'every institute or agency that has congressional monies appropriated to it.'"
"We are sharing this information broadly with other nonprofits that receive federal funding—so they can be aware of DOGE's plan to assign teams to investigate their operations," said Vera president Nick Turner. "We also are exposing this latest intimidation tactic targeting private, independent mission-driven organizations and undermining civil society."
Cole Leiter, executive director of Americans Against Government Censorship—a coalition formed late last year amid a Republican-led assault on nonprofits—said that the administration's decision to target Harvard's tax-exempt status makes clear that "they want to start shutting down organizations that present any sort of opposition to their goals or ideology."
"Today the organization being threatened by the government is Harvard, tomorrow it could be a community organization feeding the hungry or helping children with disabilities," said Leiter. "If the Trump administration decides it wants to target schools, groups, churches, or welfare organizations because they don't fall in line with their political agenda, it will open the door for any future administration to use this same unchecked power against more American citizens."
"This is a dangerous practice," Leiter added, "and it is one that should end before it ever begins."
An IRS decision on Harvard's tax status is expected imminently, according to CNN and The New York Times, which both cited unnamed people familiar with the matter.
The Times noted that "federal law bars the president from either directly or indirectly requesting the IRS to investigate or audit specific targets."
"The IRS does at times revoke tax exemptions from organizations for conducting too many political or commercial activities, but those groups can appeal the agency's decision in court," the newspaper continued. "Any attempt to take away Harvard's tax exemption would be likely to face a legal challenge, which tax experts expect would be successful."
Harvard said in a statement that the "unprecedented action" of revoking the university's tax-exempt status "would endanger our ability to carry out our educational mission."
"It would result in diminished financial aid for students, abandonment of critical medical research programs, and lost opportunities for innovation," the university said. "The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America."
Rep. Lloyd Doggett (D-Texas), who led the charge last year against Republican legislation that would have granted the Trump administration sweeping power to strip nonprofits of their tax-exempt status, said Wednesday that the threat to nonprofits "is re-emerging as Trump targets Harvard for standing for academic freedom against his war on higher education and intellectual inquiry."
Rep. Jerry Nadler (D-N.Y.) called the Trump administration's latest attack on Harvard "bullshit" and echoed others' warnings about the broader threat to nonprofits.
"This deeply disturbing and blatantly unlawful action is Trump's latest foray in his war to politicize higher education and degrade any institution that refuses to bend the knee," Nadler wrote on social media. "We know this assault won't end with Harvard, so I will be fighting back—and I encourage every single American to stand up against it and make their voices heard."
The president's message comes as a second Democrat in Congress suggested that he should exit the race.
"I'm running," declared the subject line of a fundraising email that U.S. President Joe Biden sent on Wednesday as the Democrat's reelection campaign sought to combat the criticism that has mounted since his poor debate performance last week.
"I'm the Democratic Party's nominee. No one is pushing me out. I'm not leaving, I'm in this race to the end,
and WE are going to win this election," wrote Biden, who won't be the official nominee until the convention next month. "I've been knocked down and counted out my whole life. I'm sure the same is true for many of you."
After quoting his father—who supposedly used to say: "Champ, it's not how many times you get knocked down. It's how quickly you get up."—Biden expressed confidence that he and Vice President Kamala Harris will beat the presumptive Republican nominee, former President Donald Trump, in November, as they did in 2020.
However, recent polls and reporting suggest that Democratic voters and elected officials are less confident post-debate—particularly given the stakes, with Trump emboldened by a new U.S. Supreme Court ruling, pledging to be a dictator on "day one," and expected to pursue the far-right's Project 2025 policy agenda.
Since the debate, multiple political commentators have called for replacing Biden as the Democratic candidate. On Tuesday, U.S. Rep. Lloyd Doggett of Texas became the first Democrat in Congress to call on the president to withdraw from the race, saying that he "saved our democracy by delivering us from Trump in 2021. He must not deliver us to Trump in 2024."
In a Wednesday interview with The New York Times, Congressman Raúl Grijalva of Arizona became the second.
"If he's the candidate, I'm going to support him, but I think that this is an opportunity to look elsewhere," Grijalva said. "What he needs to do is shoulder the responsibility for keeping that seat—and part of that responsibility is to get out of this race."
As Reutersreported Tuesday:
There are 25 Democratic members of the House of Representatives preparing to call for Biden to step aside if he seems shaky in coming days, according to one House Democratic aide.
A second House Democratic aide said moderate House Democrats in competitive districts—often called "frontliners"—were getting hammered with questions in their districts this week.
Democratic Reps. Marie Gluesenkamp Perez (Wash.) and Jared Golden (Maine)—Blue Dog Coalition co-chairs who, as the Timesnoted, are both "facing challenging reelection races in rural districts"—have not called on Biden to bow out of the contest but separately suggested this week that he is going to lose to Trump in November.
In addition to insisting that he is still running in the email to supporters, Biden on Wednesday "unexpectedly joined a Zoom call" with campaign and Democratic National Committee (DNC) staff, according toPolitico.
Citing two people on the call who were granted anonymity, the outlet detailed:
"Let me say this as clearly as I possibly can—as simply and straightforward as I can: I am running... no one's pushing me out. I'm not leaving. I'm in this race to the end and we're going to win," Biden said on the call.
Biden's forcefulness and resolve, especially compared to how he came across during last week's debate, was as reassuring to several attendees, who discussed the call afterward via text message, as what he said.
...Harris, whose profile has risen in recent days as Democrats focus on her with new seriousness as a possible replacement atop the ticket, was seated beside Biden on the video call.
"We will not back down," Harris said. "We will follow our president's lead. We will fight, and we will win."
Several names have been floated as possible replacements if the president does decide to end his campaign—including the Democratic governors of California, Illinois, Michigan, and Pennsylvania—but Reutersspoke with seven unnamed sources at the Biden campaign, DNC, and White House who all agreed that Harris is the top alternative.
While Harris' aides have so far publicly dismissed such a scenario, party donors and insiders—such as Democratic strategist Michael Trujillo and Donna Brazile, the former interim DNC chair—also told the news agency that should Biden decide against seeking a second term, it would make sense for the vice president to step in.
Democratic Congressman Jim Clyburn (S.C.), a key Biden ally, has reaffirmed his support for the president since the debate but also made clear that he would back Harris if Biden exited the race.
According to the Times, which also gave anonymity to its sources:
Mr. Biden's allies said that the president had privately acknowledged that his next few appearances heading into the July 4 holiday weekend must go well, particularly an interview scheduled for Friday with George Stephanopoulos of ABC News and campaign stops in Pennsylvania and Wisconsin.
"He knows if he has two more events like that, we're in a different place" by the end of the weekend, said one of the allies, referring to Mr. Biden's halting and unfocused performance in the debate. That person, who talked to the president in the past 24 hours, spoke on the condition of anonymity to discuss a sensitive situation.
White House Press Secretary Karine Jean-Pierre stressed during Wednesday's briefing that Biden isn't dropping out and rejected the Times reporting, saying, "That is absolutely false."
New national polling of likely voters from the Times and Siena College shows Trump beating Biden 49% to 43%, a three-point shift in the GOP's favor since before the debate. Polling published Wednesday by The Wall Street Journal similarly has Trump leading Biden 48% to 42%.
Survey results released Wednesday by CBS News feature a smaller margin but still favor the Republican: "Trump now has a three-point edge over President Biden across the battleground states collectively, and a two-point edge nationally."
Polling released Tuesday suggests Harris may do better against Trump. CNNfound that while Trump beats Biden 49% to 43%, the former president only leads Harris by two points, 47% to 45%.
The voters surveyed by Ipsos were split, with 40% supporting Trump and the same share backing Biden. In the Trump-Harris matchup, the split was 42% to 43% in the Republican's favor.