House Speaker Paul Ryan on Capitol Hill, March 24, 2017. AP Photo/Andrew Harnik
Editor’s note: The fight didn’t last long. Moments before a scheduled vote on March 24, House Speaker Paul Ryan pulled the bill that would have repealed the Affordable Care Act. It was a surprisingly swift defeat for a legislative priority talked up by Republicans since the day Obamacare first passed. We asked congressional scholars what the retreat means – and what comes next.
Richard A. Arenberg, Brown University
President Trump and the Republican Congressional leadership have suffered a stunning defeat. The inability of the new president and his GOP majority to pass the American Health Care Act in the House places in question their ability to accomplish their central campaign promise of repealing Obamacare. It also creates significant obstacles for the remainder of the Trump legislative agenda, especially the planned tax cut.
The conflicting demands by factions in the health care debate have laid bare huge fissures in the Republican caucus – fissures which had been masked by apparent unity in the wake of Trump’s surprising election. Further, the failure of this first test of the Trump administration and its allies on the Hill raises serious questions about Speaker Ryan’s ability to bridge those gaps.
The bill, pulled by the Speaker before it could suffer defeat on the House floor, contained more than US$880 billion of tax reductions over 10 years.
GOP leaders have been counting on that reduction to the revenue base to permit a large tax reform bill to be passed using the reconciliation process. Reconciliation would permit the tax bill to be passed in the Senate with a simple majority, foreclosing the possibility of a Democratic filibuster.
However, in order to qualify under Senate rules, that bill must be revenue-neutral. The plan to use the tax reductions contained in the American Health Care Act was one of the main reasons that the Republican Congressional leadership convinced Trump to undertake the health care bill first.
The wisdom of that strategy will come under severe scrutiny in the White House in the days ahead.