D espite a setback to President Donald Trump's megabill Thursday morning, the president held an event in the East Room of the White House to rally Republicans behind his tax legislation.

WASHINGTON—President Trump stuck to his July 4 deadline for Republicans’ tax-and-spending megabill while signaling there might be some wiggle room as GOP senators struggled to resolve disagreements over Medicaid cuts and other provisions.

Senate Republicans are racing into a crucial weekend in their effort to pass President Trump’s mammoth tax and spending bill despite not knowing whether they have the votes to advance it or what some aspects of the final package will look like.