A key piece of legislation championed by President Donald Trump has suffered a major setback after five Republicans joined Democrats in voting against it in Congress, halting progress on what Trump had called his “big, beautiful bill.”

The budget bill, which includes extended tax cuts from Trump’s first term and a much-publicised “no tax on tips” policy, was defeated in a procedural vote on Friday. The defection of five Republican lawmakers, citing concerns over insufficient budget cuts and healthcare provisions, delivered a sharp blow to the Trump administration’s domestic agenda.

“We don’t need ‘GRANDSTANDERS’ in the Republican Party. STOP TALKING, AND GET IT DONE!” Trump posted on Truth Social in a characteristically blunt appeal to his party.

While the legislation is not entirely dead, the vote marks the first significant legislative defeat for Trump this year. The five Republicans said they would not back the bill unless deeper cuts to Medicaid and a full repeal of Democratic green energy tax incentives were included.

“This bill falls profoundly short,” said Texas Republican Chip Roy. “It does not do what we say it does with respect to deficits.”

The bill proposes extending sweeping tax cuts from Trump’s first term, which critics argue disproportionately benefit wealthy Americans. Democrats have warned that provisions within the bill could leave millions without access to affordable healthcare by cutting Medicaid and subsidies under the Affordable Care Act.

“No other previous bill, no other previous law, no other previous event caused so many millions of Americans to lose their healthcare. Not even the Great Depression,” said Pennsylvania Democrat Brendan Boyle.

The nonpartisan Joint Tax Committee estimates that the proposed tax cuts would cost $3.72 trillion (£2.8 trillion) over the next decade.

House Speaker Mike Johnson now faces mounting pressure from both wings of his party — with hard-line conservatives pushing for deeper spending cuts and moderates wary of harming vital health programmes in an election year.

Negotiations are expected to continue over the weekend as the Trump administration scrambles to rally support for a revised version of the bill.

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