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Divisions emerge among House Republicans over how much to cut taxes and Medicaid in Trump’s bill

Divisions emerge among House Republicans over how much to cut taxes and Medicaid in Trump’s bill
US House Speaker Mike Johnson also worked past midnight trying to resolve issues with Trump’s plan. . (Getty Images/AFP)
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Updated 15 May 2025

Divisions emerge among House Republicans over how much to cut taxes and Medicaid in Trump’s bill

Divisions emerge among House Republicans over how much to cut taxes and Medicaid in Trump’s bill
  • Democrats decry the package as a give away to the wealthy

WASHINGTON: Cheers broke out early Wednesday as Republicans on the House Ways and Means Committee signed off on the GOP tax breaks bill after a grueling round-the-clock session that pushed President Donald Trump’s package past overwhelming Democratic opposition.
But there’s still more work to do.
House Speaker Mike Johnson, R-Louisiana, also worked past midnight trying to resolve issues with Trump’s plan. Opposition is mounting from various corners of the GOP majority as he tries to muscle the party’s signature package to passage without any votes from Democrats.
On the one hand, the conservative leader of the Freedom Caucus derides the new Medicaid work requirements as a “joke” that do not go far enough at cost-cutting. Meanwhile, a handful of GOP lawmakers from New York and other high-tax states are refusing to support the measure unless changes are made to give deeper state and local tax deductions, called SALT, for their constituents back home.
“To say we have a gulf is an understatement,” said Rep. Chip Roy, R-Texas, a leader of the conservative wing.
Roy said there is “a significant number of us who could not bless this product” in its current form.
Nevertheless, momentum is building toward an end-of-the-week inflection point to stitch together the sprawling package. That means combining hundreds of pages of bill text covering $5 trillion in tax breaks and at least $1.5 trillion in spending reductions on Medicaid, food stamps and green energy programs to deliver Trump’s second-term legislative priority.
Democrats decry the package as a give away to the wealthy at the expense of safety net programs that millions of Americans rely on. But Johnson insists the Republican majority is on track to pass the package by Memorial Day, May 26, sending it to the Senate where Republicans are crafting their own version. With his slim majority, he can only afford a few defections from his ranks.
“We’re still on target,” Johnson said at the Capitol. “The American people are counting on us.”
Democrats also stayed up all night forcing marathon public hearings. One at the House Energy and Commerce Committee was still going more than 26 hours later before finishing Wednesday afternoon. All told, Democrats proposed hundreds of amendments trying to change the package, with dozens of votes that largely failed.
“It is a cruel, mean, rotten bill,” said Rep. Jim McGovern, D-Mass., as the House Agriculture Committee debated changes to the Supplemental Nutrition and Assistance Program, known as SNAP.
The nonpartisan Congressional Budget Office said at least 7.6 million fewer people would have health insurance with the changes to Medicaid, and possibly more with additional changes to the Affordable Care Act.
The CBO also gave lawmakers a preliminary analysis showing that 3 million fewer people each month would participate in the SNAP food program under the changes proposed.
More than 70 million Americans rely on Medicaid for health care, and about 40 million use SNAP.
The Republicans are targeting Medicaid and SNAP for a combined $1 trillion in cuts as a way to offset the costs of the tax package, but also to achieve GOP goals of reining in the social safety net programs.
Most of the cost-savings would come from imposing stiffer work requirements for those receiving the health care and food assistance, meaning fewer people would qualify for the aid. The legislation would raise from 54 to 64 the age of able-bodied adults without dependents who would have to work to qualify for SNAP. It also would also require some parents of children older than 7 — it’s now 18 — to work to qualify for the benefits. Under current law, those recipients must work or participate in a work program for 80 hours a month.
The chairman of the House Energy and Commerce Committee, Rep. Brett Guthrie, R-Kentucky, insists the changes would “strengthen and sustain” Medicaid for the future, and are the kind of “common sense” policies Trump promised voters.
But Democrats told repeated stories of their constituents struggling to access health care. Rep. Jimmy Gomez, D-Calif., revealed his own diagnosis with Type 2 diabetes at the House Ways and Means Committee hearing and the sticker shock of health costs.
Democrats had proposals to revive subsidies to help people buy insurance through the Affordable Care Act. Most of the amendments were failing.
One of the most difficult issues for Johnson, has been the more localized debate over state and local taxes as he works to come up with a compromise for New York, California and New Jersey lawmakers. They have rejected an offer to triple the deduction cap, now at $10,000, to $30,000 for married couples.
The speaker met for more than an hour with lawmakers in his office and later into the night.
Rep. Nick LaLota, R-N.Y., said the talks were cordial, but there was no deal. “More sizzle than steak in that meeting,” he said late Tuesday.
“The reality is you need 218 votes to pass a bill and the way this bill is currently constructed, it will not have that because it does not adequately the issue of SALT,” said Rep. Mike Lawler, R-N.Y.
The lawmakers believe they have leverage in the talks because without a deal, the $10,000 limit established under the 2017 tax bill expires at the end of the year and reverts to no cap at all.
“These things are in negotiation,” LaLota said, adding that his constituents “shouldn’t be asked to pay for the large amount of the bill like the were asked to pay for it eight years ago.”
But as Johnson and the lawmakers edge closer to a SALT deal, the conservatives are balking that their priorities must also be met.
Rep. Eric Burlison, R-Missouri, said he’s a no for now, but would be working to improve the bill so that he could support it.
The conservatives argue that the tax breaks without deeper spending cuts will pile onto the deficit, and they worry that the Medicaid reductions do not go far enough in rolling back federal funds to expand the Affordable Care Act. They also want the work requirements, which don’t take effect until Jan. 1, 2029, to start sooner.
“Basically Republicans are enforcing Obamacare, which is a surreal situation to me,” Burlison said.
Republicans are racing to extend Trump’s tax breaks, which are set to expire later this year, while adding the new ones he campaigned on in 2024, including no taxes on tips, Social Security benefits and others.
A new analysis from the Joint Committee on Taxation shows that most tax filers would see a lower tax rates under the proposal, except those at the lowest rates, who earn less than $15,000 a year. Their average tax rate would go up.


Trump signals fresh trade tensions with China

Trump signals fresh trade tensions with China
Updated 30 May 2025

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 30 May 2025

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 30 May 2025

‘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 30 May 2025

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 ֱ, 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.