July 2, 2025


White House Steps In as GOP Divides Over Contentious Megabill

House Republican leaders are turning to the White House in a decisive move to garner support from the staunchly conservative House Freedom Caucus on the controversial Republican megabill. Leadership within the GOP believes that the White House's influence is crucial in persuading the hard-line members who have expressed their reluctance to support the Senate's version of the legislation.

"The sense is the White House needs to deliver the Freedom Caucus — that’s the project of the day," a source close to the GOP leadership revealed under condition of anonymity due to the sensitivity of the discussions.

The Freedom Caucus has raised alarms over the Senate-passed bill, which they assert would increase the national deficit by more than $600 billion compared to the version they endorsed earlier in May. Their contention hinges on what they see as a breach of the earlier negotiated budget framework with House Speaker Mike Johnson. This framework was intended to proportionally link tax reductions to spending cuts.

Speaker Johnson finds himself in a tight spot, striving to push through the Senate bill without amendments to avoid further delays that would result from sending the bill back across the Capitol. The White House, with its capacity to negotiate on executive orders and future legislative adjustments, is positioned as a more suited mediator to address the conservatives' concerns.

In a parallel development, GOP moderates from states like Pennsylvania, New York, and North Carolina have expressed their unease about deeper cuts to state provider taxes that support Medicaid. These moderates are scheduled for a meeting with President Donald Trump to discuss these issues. Notably, Trump is also set to meet with fiscal conservatives later today.

The internal rift is highlighted by a letter penned in late June by moderate Republicans, including Representatives Jen Kiggans (R-Va.) and Rob Bresnahan (R-Pa), to both Johnson and Senate Majority Leader John Thune. The letter outlined their worries about the proposed Medicaid cuts. However, Representatives David Valadao (R-Calif.) and Dan Newhouse (R-Wash.), who also signed the letter, have so far avoided commenting on the Medicaid issues.

As the GOP navigates these internal divisions, the role of the White House could be pivotal in shaping the outcome of the megabill, balancing the scales between the fiscal prudence demanded by conservatives and the moderate wing's call for tempered cuts. The coming days are crucial as both sides of the GOP look to the executive branch for leadership in resolving their differences.