The House passed a budget resolution with GOP priorities
Image: PwC
House Republicans approved a budget proposal this week in a 217-215 vote, with one Republican joining all Democrats in opposition to the proposed spending and tax cuts included in the bill.
The plan doesn’t detail specific policy changes, but rather directs congressional committees in charge of spending to make certain cuts consistent with Trump’s policy agenda.
- Overall, it calls for up to $2 trillion in spending cuts over the next 10 years, with over half of that figure coming from the Energy and Commerce Committee (which controls spending for energy, technology, healthcare, and more).
- These spending cuts are paired with up to $4.5 trillion in tax cuts over the next decade, via an extension of expiring tax cuts passed by Republicans in 2017.
- The resolution also seeks $300 billion in additional spending for border security and the military.
The arguments: Republicans who support the House budget say steep reductions in federal spending cover much of the costs of their proposed tax cuts – which in turn will promote economic growth and create more taxable income and wealth for Americans.
Many Democratic lawmakers and groups have pushed back against the proposed spending and tax cuts, portraying them as a plan to cut benefits for the working and middle classes to enact tax breaks for richer Americans.
The numbers: The nonpartisan Committee for a Responsible Federal Budget estimates the new House bill will add $2.8+ trillion to federal deficits over the next decade ($3.4+ trillion including interest).
Looking ahead…The House budget resolution now heads to the Senate, where lawmakers are expected to make several changes before sending the bill back to the House for final approval. But the process doesn’t end there.
Once both chambers of Congress are on the same page, lawmakers still have to negotiate hundreds of details on taxes, health care, energy, and food stamps before they can get a bill to President Trump’s desk.
📊 Flash poll: In general, do you support the recently approved House budget resolution seeking to enact spending cuts combined with tax cuts?
See a 360° view of what pundits are saying →
Sprinkles from the Left
- Some commentators argue that House Republicans are exaggerating the proposed budget resolution's economic benefits to distract from its true economic effects, particularly by raising costs for the average American and increasing the long-term deficit.
- Others contend that the budget will be worse for the economy in the long term as it will significantly raise government spending and force enormous deficits that will not be sustainable.
- “The House GOP Budget Is a Lie and Will Hurt People—And They Know It.” –Gbenga Ajilore, Common Dreams
- “Do Republicans Really Want Trillions in New Deficits?”–Bloomberg Editorial Board
- “The House Republican budget leaves states holding the bag on Medicaid.” –Karen Tumulty, Washington Post
Sprinkles from the Right
- Some commentators argue that Republicans are finally learning to stand together on policy issues and that those who voted no are actively voting against what the bill addresses, such as the $4.5 trillion tax increase with zero spending restriction, the preservation of the small business deduction, and a much-needed cash infusion for national defense.
- Others contend that Johnson did an exemplary job of bringing Republicans together to pass the bill at the eleventh hour and that this is a sign that the party can be empowered to make some real progress going forward.
- “The House GOP Hangs Together.”–Wall Street Journal Editorial Board
- “Mike Johnson’s big, beautiful win.” –Washington Examiner Editorial Board
- “Opinion: Why the Medicaid ‘chainsaw’ will come for your home.” –Brett Arends, MarketWatch
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