House Republicans are in the final rounds of negotiations over a sweeping budget plan that has been significantly influenced by President Donald Trump's priorities.

By David Morgan and Bo Erickson WASHINGTON (Reuters) -Hardline Republicans in the U.S. House of Representatives blocked President Donald Trump's sweeping tax bill on Friday over concerns it did not do enough to cut spending hours before Moody's stripped the federal government of its once top-tier credit rating.

In a massive 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.

Failure to push the package out of the Budget Committee would be a setback for Speaker Mike Johnson, who insists Republicans are on track to pass the bill.

The vote is a significant, but not fatal, setback to the legislation that President Donald Trump hopes will define his second term.