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In a stunning setback, GOP conservatives join Democrats in blocking Trump’s big tax breaks bill

In a stunning setback, GOP conservatives join Democrats in blocking Trump’s big tax breaks bill
Members of the US House Budget Committee attend a meeting on May 16, 2025 to consider House Republicans’ reconciliation bill, which includes US President Donald Trump's proposed tax and spending cuts. (Getty Images via AFP)
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Updated 17 May 2025

In a stunning setback, GOP conservatives join Democrats in blocking Trump’s big tax breaks bill

In a stunning setback, GOP conservatives join Democrats in blocking Trump’s big tax breaks bill
  • Hard-right lawmakers want steeper spending cuts to Medicaid and the Biden-era green energy tax breaks
  • Democrats, on the other hand, slammed the package as a “big, bad bill,” and “one big, beautiful betrayal”

WASHINGTON: In a setback, House Republicans failed Friday to push their big package of tax breaks and spending cuts through the Budget Committee, as a handful of conservatives joined all Democrats in a stunning vote against it.
The hard-right lawmakers are insisting on steeper spending cuts to Medicaid and the Biden-era green energy tax breaks, among other changes, before they will give their support to President Donald Trump’s “beautiful” bill. They warn the tax cuts alone would pile onto the nation’s $36 trillion debt.
The failed vote, 16-21, stalls, for now, House Speaker Mike Johnson’s push to have the package approved next week. But the Budget Committee plans to reconvene Sunday to try again. Lawmakers vowed to negotiate into the weekend as Trump is returning to Washington from the Middle East.
“Something needs to change or you’re not going to get my support,” said Rep. Chip Roy, R-Texas.
Tallying a whopping 1,116 pages, the One Big Beautiful Bill Act, named with a nod to Trump, is teetering at a critical moment. Johnson is determined to resolve the problems with the package that he believes will inject a dose of stability into into a wavering economy.

With few votes to spare from his slim majority, the Republicans are trying to pass it over the staunch objections of Democrats who slammed the package as a “big, bad bill,” or as Rep. Pramila Jayapal, D-Washington, called it, “one big, beautiful betrayal.”
Ahead of Friday’s vote, Trump had implored his party to fall in line.
“Republicans MUST UNITE behind, ‘THE ONE, BIG BEAUTIFUL BILL!’” the Republican president posted on social media. “We don’t need ‘GRANDSTANDERS’ in the Republican Party. STOP TALKING, AND GET IT DONE!”
The Budget panel is one of the final stops before the package is sent to the full House floor for a vote, which is still expected sometime next week. Typically, the job of the Budget Committee is more administrative as it compiles the work of 11 committees that drew up various parts of the big bill.
But Friday’s meeting proved momentous even before the votes were tallied.
The conservatives, many from the Freedom Caucus, had been warning they would block the bill, as they holdout for steeper cuts. At the same time, GOP lawmakers from high-tax states including New York are demanding a deeper tax deduction, known as SALT, for their constituents.
Four Republican conservatives initially voted against the package — Roy and Reps. Ralph Norman of South Carolina, Josh Brecheen of Oklahoma, Rep. Andrew Clyde of Georgia. Then one, Rep. Lloyd Smucker of Pennsylvania, switched his vote to no in a procedural step so it could be reconsidered later, saying afterward he was confident they’d “get this done.”
Norman insisted he was not defying the president — “this isn’t a ‘grandstand,’” he said — as he and the others push from Trump’s priorities.
In their quest for deeper reductions, the conservatives are particularly eyeing Medicaid, the health care program for some 70 million Americans. They want new work requirements for aid recipients to start immediately, rather than on Jan. 1, 2029, as the package proposes.
Democrats emphasized that millions of people would lose their health coverage and food stamps assistance if the bill passes while the wealthiest Americans would reap enormous tax cuts. They also said it would increase future deficits.
“That is bad economics. It is unconscionable,” said Rep. Brendan Boyle, the top Democratic lawmaker on the panel.
At the same time, talks are also underway with the New Yorkers have been unrelenting in their demand for a much larger SALT deduction than what is proposed in the bill, which could send the overall cost of the package skyrocketing.
As it stands, the bill proposes tripling what’s currently a $10,000 cap on the state and local tax deduction, increasing it to $30,000 for joint filers with incomes up to $400,000 a year.
Rep. Nick LaLota, one of the New York lawmakers leading the SALT effort, said they have proposed a deduction of $62,000 for single filers and $124,000 for joint filers.
The conservatives and the New Yorkers are at odds, each jockeying as Johnson labors to pass the package from the House by Memorial Day and send it onto the Senate.
At its core, the sprawling package extends the existing income tax cuts that were approved during Trump’s first term, in 2017, and adds new ones that the president campaigned on in 2024, including no taxes on tips, overtime pay and some auto loans.
It increases some tax breaks for middle-income earners, including a bolstered standard deduction of $32,000 for joint filers and a temporary $500 boost to the child tax credit, bringing it to $2,500.
It also provides an infusion of $350 billion for Trump’s deportation agenda and to bolster the Pentagon.
To offset more than $5 trillion in lost revenue, the package proposes rolling back other tax breaks, namely the green energy tax credits approved as part of President Joe Biden’s Inflation Reduction Act. Some conservatives want those to end immediately.
The package also seeks to cover the costs by slashing more than $1 trillion from health care and food assistance programs over the course of a decade, in part by imposing work requirements on able-bodied adults.
Certain Medicaid recipients would need to engage in 80 hours a month of work or other community options to receive health care. Older Americans receiving food aid through the Supplemental Nutrition Assistance Program, known as SNAP, would also see the program’s current work requirement for able-bodied participants without dependents extended to include those ages 55-64. States would also be required to shoulder a greater share of the program’s cost.
The nonpartisan Congressional Budget Office estimates at least 7.6 million fewer people with health insurance and about 3 million a month fewer SNAP recipients with the changes.
While Republicans insist the package will pay for itself, partly with economic growth, outside budget analysts are skeptical and say it will add trillions of dollars to the nation’s deficits and debt.


Trump signals fresh trade tensions with China

Updated 5 sec ago

Trump signals fresh trade tensions with China

Trump signals fresh trade tensions with China
The world’s two biggest economies had agreed this month to temporarily lower staggeringly high tariffs
Trump wrote that: “China… HAS TOTALLY VIOLATED ITS AGREEMENT WITH US“

WASHINGTON: US President Donald Trump signaled renewed trade tensions with China on Friday, arguing that Beijing had “violated” a deal to de-escalate tariffs, at a time when both sides appeared deadlocked in negotiations.

Trump’s post on his Truth Social platform came hours after US Treasury Secretary Scott Bessent said that trade talks with China were “a bit stalled,” in an interview with broadcaster Fox News.

The world’s two biggest economies had agreed this month to temporarily lower staggeringly high tariffs they had imposed on each other, in a pause to last 90 days, after talks between top officials in Geneva.

But on Friday, Trump wrote that: “China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” without providing further details.

Asked about the post on CNBC, US Trade Representative Jamieson Greer took aim at Beijing for continuing to “slow down and choke off things like critical minerals.”

He added that the United States’ trade deficit with China “continues to be enormous,” and that Washington was not seeing major shifts in Beijing’s behavior.

On Thursday, Bessent suggested that Trump and his Chinese counterpart Xi Jinping could get involved in the situation.

Global universities seek to lure US-bound students amid Trump crackdown

Global universities seek to lure US-bound students amid Trump crackdown
Updated 2 min 44 sec ago

Global universities seek to lure US-bound students amid Trump crackdown

Global universities seek to lure US-bound students amid Trump crackdown
  • Osaka University is offering tuition fee waivers, research grants and help with travel arrangements for students and researchers at US institutions
  • Students from Britain and the European Union are also now more hesitant to apply to US universities

TOKYO/BEIJING/LONDON: Universities around the world are seeking to offer refuge for students impacted by US President Donald Trump’s crackdown on academic institutions, targeting top talent and a slice of the billions of dollars in academic revenue in the United States.

Osaka University, one of the top ranked in Japan, is offering tuition fee waivers, research grants and help with travel arrangements for students and researchers at US institutions who want to transfer.

Japan’s Kyoto University and Tokyo University are also considering similar schemes, while Hong Kong has instructed its universities to attract top talent from the United States. China’s Xi’an Jiaotong University has appealed for students at Harvard, singled out in Trump’s crackdown, promising “streamlined” admissions and “comprehensive” support.

Trump’s administration has enacted massive funding cuts for academic research, curbed visas for foreign students — especially those from China — and plans to hike taxes on elite schools.

Trump alleges top US universities are cradles of anti-American movements. In a dramatic escalation, his administration last week revoked Harvard’s ability to enrol foreign students, a move later blocked by a federal judge.

Masaru Ishii, dean of the graduate school of medicine at Osaka University, described the impact on US universities as “a loss for all of humanity.”

Japan aims to ramp up its number of foreign students to 400,000 over the next decade, from around 337,000 currently.

Jessica Turner, CEO of Quacquarelli Symonds, a London-based analytics firm that ranks universities globally, said other leading universities around the world were trying to attract students unsure of going to the United States.

Germany, France and Ireland are emerging as particularly attractive alternatives in Europe, she said, while in the Asia-Pacific, New Zealand, Singapore, Hong Kong, South Korea, Japan, and mainland China are rising in profile.

SWITCHING SCHOOLS
Chinese students have been particularly targeted in Trump’s crackdown, with US Secretary of State Marco Rubio on Wednesday pledging to “aggressively” crack down on their visas.

More than 275,000 Chinese students are enrolled in hundreds of US colleges, providing a major source of revenue for the schools and a crucial pipeline of talent for US technology companies.

International students — 54 percent of them from India and China — contributed more than $50 billion to the US economy in 2023, according to the US Department of Commerce.

Trump’s crackdown comes at a critical period in the international student application process, as many young people prepare to travel to the US in August to find accommodation and settle in before term starts.

Dai, 25, a Chinese student based in Chengdu, had planned to head to the US to complete her master’s but is now seriously considering taking up an offer in Britain instead.

“The various policies (by the US government) were a slap in my face,” she said, requesting to be identified only by her surname for privacy reasons. “I’m thinking about my mental health and it’s possible that I indeed change schools.”

Students from Britain and the European Union are also now more hesitant to apply to US universities, said Tom Moon, deputy head of consultancy at Oxbridge Applications, which helps students in their university applications.

He said many international students currently enrolled at US universities were now contacting the consultancy to discuss transfer options to Canada, the UK and Europe.

According to a survey the consultancy ran earlier this week, 54 percent of its clients said they were now “less likely” to enrol at an American university than they were at the start of the year.

There has been an uptick in applications to British universities from prospective students in the US, said Universities UK, an organization that promotes British institutions. It cautioned, however, that it was too early to say whether that translates into more students enrolling.

REPUTATIONAL EFFECTS
Ella Ricketts, an 18-year-old first year student at Harvard from Canada, said she receives a generous aid package paid for by the school’s donors and is concerned that she won’t be able to afford other options if forced to transfer.

“Around the time I was applying to schools, the only university across the Atlantic I considered was Oxford... However, I realized that I would not be able to afford the international tuition and there was no sufficient scholarship or financial aid available,” she said.

If Harvard’s ability to enrol foreign students is revoked, she would most likely apply to the University of Toronto, she said.

Analytics firm QS said overall visits to its ‘Study in America’ online guide have declined by 17.6 percent in the last year — with interest from India alone down over 50 percent.

“Measurable impacts on enrolment typically emerge within six to 18 months. Reputational effects, however, often linger far longer, particularly where visa uncertainty and shifting work rights play into perceptions of risk versus return,” said QS’ Turner.

That reputational risk, and the ensuing brain drain, could be even more damaging for US institutions than the immediate economic hit from students leaving.

“If America turns these brilliant and talented students away, they will find other places to work and study,” said Caleb Thompson, a 20-year-old US student at Harvard, who lives with eight international scholars.


‘Deeply dangerous’ Islamophobia being promoted in UK: Baroness Warsi

‘Deeply dangerous’ Islamophobia being promoted in UK: Baroness Warsi
Updated 16 min 39 sec ago

‘Deeply dangerous’ Islamophobia being promoted in UK: Baroness Warsi

‘Deeply dangerous’ Islamophobia being promoted in UK: Baroness Warsi
  • House of Lords member, ex-minister ‘heartbroken’ over negative portrayals of British Muslims
  • She discussed with her husband whether to prepare ‘exit routes’ from country

LONDON: Baroness Warsi, a Muslim former minister in the UK, has warned that “deeply dangerous” Islamophobic narratives are being promoted in British public discourse, The Independent reported.

The House of Lords member, who was speaking at the Hay Festival — a prominent literary and arts event — compared rising Islamophobia in Britain to the treatment of Jews in 1930s Europe.

In conversation with British-Israeli journalist Rachel Shabi, she described feeling “heartbroken” at the way Muslim communities are increasingly portrayed in the UK.

“It doesn’t matter how many times you serve and how many times you do what you do for our country,” she said. “You still don’t belong. You still don’t matter. You still can’t be trusted.”

Warsi, who was discussing her new book “Muslims Don’t Matter,” described growing up in a working-class family of Pakistani origin in Yorkshire.

The former co-chair of the Conservative Party said she had recently discussed with her husband whether it was necessary to prepare “exit routes” from Britain.

“I turned to him and I said are we going to be like those Jewish families in Europe in the 1920s and 1930s, who were always sitting back, looking at the writing on the wall and thinking, ‘No, we’re going to be all right. We’re very successful. We live in the right part of town. We’re part of the establishment.’ And then it will be too late. Should we be doing what everybody else around us seems to be doing right now, which is putting in place plan Bs and exit routes?”

Warsi warned that negative narratives surrounding British Muslims are being driven by politicians and the media.

“The good news is this isn’t bottom up,” she said. “This isn’t ordinary people sat there thinking, ‘Oh, I really have an issue with Muslims and I’m now going to have quite hateful views about them.’

“This is people in power and people with big platforms constantly telling us, ‘We can’t trust Muslims. They’re all dangerous, they’re violent, the men are sexually predatory, the women are traditionally submissive.’”

She added: “It’s these tropes which we’re constantly being told about Muslim communities which, in the end, poisons the public discourse to a point where we start seeing this community in the worst possible light.”

Warsi ended the discussion with an appeal for solidarity, and called on the British public to reject divisive narratives.

“It’s time for us to organize and it’s time for us to fight back, because all of our rights in the end will suffer,” she said.


Ukraine says it’s ready to restart talks with Russia but needs clarity on Kremlin’s terms

Ukraine says it’s ready to restart talks with Russia but needs clarity on Kremlin’s terms
Updated 36 min 35 sec ago

Ukraine says it’s ready to restart talks with Russia but needs clarity on Kremlin’s terms

Ukraine says it’s ready to restart talks with Russia but needs clarity on Kremlin’s terms
  • “Ukraine is ready to attend the next meeting, but we want to engage in a constructive discussion,” Andrii Yermak said
  • Ukraine and its European allies have repeatedly accused the Kremlin of dragging its feet in peace efforts

KYIV: Ukraine is ready to resume direct peace talks with Russia in Istanbul on Monday, a top adviser to President Volodymyr Zelensky said, following days of uncertainty over whether Kyiv would attend a meeting proposed by Moscow.

But Ukrainian officials have insisted that the Kremlin provide a promised memorandum setting out its position on ending the more than three-year war, before the two delegations sit down to negotiate.

“Ukraine is ready to attend the next meeting, but we want to engage in a constructive discussion,” Andrii Yermak said in a statement on the website of Ukraine’s Presidential Office late Thursday.

“This means it is important to receive Russia’s draft. There is enough time – four days are sufficient for preparing and sending the documents,” Yermak said.

Ukraine and its European allies have repeatedly accused the Kremlin of dragging its feet in peace efforts, while it tries to press its bigger army’s battlefield initiative and capture more Ukrainian land.

Kyiv’s Western partners, including the US, are urging Moscow to agree to an unconditional ceasefire, something Kyiv has embraced while the Kremlin has held out for terms more to its liking.

Ukraine’s top diplomat, Andrii Sybiha, also told reporters on Friday that Kyiv is waiting for Russia to clarify its proposals ahead of a next round of talks.

“We want to end this war this year. We are interested in establishing a ceasefire, whether it is for 30 days, 50 days, or 100 days. Ukraine is open to discussing this directly with Russia,” Sybiha said at a joint news conference in Kyiv with his Turkish counterpart, Hakan Fidan.

Sybiha and Fidan also held the door open to a future meeting between Presidents Zelensky and Vladimir Putin of Russia, possibly also including US President Donald Trump. Fidan said the ongoing peace push in Istanbul could be “crowned with” such a meeting.

Kremlin spokesman Dmitry Peskov on Friday told reporters that a Russian delegation will head to Istanbul and stand ready to take part in the second round of talks on June 2.

Russia’s Foreign Minister Sergei Lavrov on Wednesday publicly invited Ukraine to hold direct negotiations with Moscow on that date. In a video statement, Lavrov said Russia would use Monday’s meeting to deliver an outline of Moscow’s position on “reliably overcoming” what it calls the root causes of the war. Russian officials have said for weeks that such a document is forthcoming.

Ukrainian Defense Minister Rustem Umerov on Wednesday said that Ukraine isn’t opposed to further direct talks with Russia, but that they would be “empty” if Moscow were to fail to clarify its terms. Umerov said he had personally handed a document setting out Ukraine’s position to the Russian side.

Low-level delegations from Russia and Ukraine held their first direct peace talks in three years in Istanbul on May 16. The talks, which lasted two hours, brought no significant breakthrough, although both sides agreed to the largest prisoner exchange of the war. It was carried out last weekend and freed 1,000 captives on each side.

Fidan on Friday voiced a belief that the successful swap has “proved that negotiations can yield concrete results.”

“There are two paths in front of us. Either we will turn a blind eye to the continuation of the war, or we will reach a lasting peace within the end of the year,” he told reporters in Kyiv.


Philippines looks to deepen trade, business ties with UAE

Philippines looks to deepen trade, business ties with UAE
Updated 30 May 2025

Philippines looks to deepen trade, business ties with UAE

Philippines looks to deepen trade, business ties with UAE
  • Manila is anticipating the signing of a Philippine-UAE trade deal in June
  • UAE is one of Philippines’ key trading partners in the Gulf region

MANILA: The Philippines is ready to deepen its economic partnership with the UAE, Manila’s special envoy has said, as the visit of a business delegation from Dubai concluded this week. 

Dubai Chambers organized a business forum in Manila on Wednesday as part of its “New Horizons” initiative. With its delegation visiting the Philippine capital, the business body had organized at least 180 bilateral meetings. 

The event also saw Dubai Chambers and the Philippine Chamber of Commerce and Industry sign a preliminary agreement aimed at strengthening trade and investment ties through various efforts, including sending trade missions and organizing business-matching missions. 

“The Philippines is open, ready, and eager for stronger trade and business ties with the UAE,” Kathryna Yu-Pimentel, the Philippines’ special envoy to the UAE for trade and investment, said during the forum. 

“Last year, we celebrated the 50th anniversary of diplomatic relations between the Philippines and the UAE — a golden milestone. Today, we look ahead with even more optimism.” 

The UAE is a key trading partner of the Philippines in the region. In 2023, non-oil bilateral trade between the Philippines and the UAE reached over $1 billion. The Gulf state also ranked as the Philippines’ top export market among the Gulf Cooperation Council nations, and its 17th largest trading partner globally. 

It is also home to the second-largest Filipino diaspora after Ƶ, with some 700,000 overseas Filipino workers living and working in the UAE. Many are employed in the construction, healthcare and hospitality sectors.

“This upward trend will only continue, especially with the anticipated signing of the Comprehensive Economic Partnership Agreement between the Philippines and the UAE next month,” Yu-Pimentel said. 

“This will be historic in the sense that it will be our first free trade agreement with a Middle Eastern country.” 

The expected development will follow President Ferdinand Marcos Jr.’s first trip to Abu Dhabi in November, during which he met UAE President Sheikh Mohammed bin Zayed.

The two leaders committed “to deepening cooperation in various areas, including economy, trade and sustainability” during their meeting, which included discussions on the bilateral trade agreement. 

Negotiations on the free trade deal have been underway between Philippine and UAE officials since the beginning of 2024.