The Committee for a Responsible Federal Budget has warned that extending Trump's 2017 tax cuts could add a staggering $11 trillion to the national debt over the next decade, raising concerns among fiscal conservatives.

Senator Rand Paul of Kentucky has made it clear that he will not support any legislation that raises the debt ceiling without accompanying spending cuts, emphasizing the need for fiscal responsibility.

Top Senate Republican John Thune and House Speaker Mike Johnson are strategizing to leverage the tax cut bill as a vehicle to raise the debt ceiling, a critical issue that must be resolved by summer 2025 to avoid a default.

Democrats have been vocal in their criticism of the Republican plan, arguing that it endangers the safety and welfare of the American people, with House Democrat Hakeem Jeffries advocating for responsible negotiations rather than unilateral actions.

Senator Cynthia Lummis has expressed concern over the deep divisions within the Republican conference regarding spending cuts and debt management, highlighting the challenges ahead.

The ultraconservative House Freedom Caucus is pushing for a dramatic $2 trillion in spending cuts, primarily targeting Medicaid and green energy tax credits, which could exacerbate the existing rifts within the party.

U.S. congressional Republicans are currently facing significant divisions over how to fund President Donald Trump's ambitious multi-trillion-dollar tax cuts and immigration reform agenda, with critical issues such as Medicaid and the debt ceiling at stake.

Republican states that expanded Medicaid under the Affordable Care Act are resisting significant cuts to the program, instead advocating for the implementation of work requirements.

Some House Republicans are proposing a more modest approach, supporting a $250 billion reduction in Medicaid while focusing on eliminating waste, fraud, and abuse.

Moderate Republicans are also backing the idea of limiting Medicaid cuts to $250 billion, noting that the program currently supports approximately 35 million people in states that Trump won in the 2024 election.

Senator Josh Hawley has underscored the political risks associated with cutting Medicaid benefits, pointing out that a significant portion of Missourians rely on the program.

Additionally, there is an ongoing debate regarding the maintenance of the $10,000 deduction limit for state and local taxes (SALT), which is particularly crucial for high-tax states that hold Republican seats.