WASHINGTON (TNND) — House Republicans are working to advance a multitrillion-dollar tax cut and spending plan to enact President Donald Trump’s sweeping agenda in the early days of his second administration but are facing internal battles in hitting spending targets and reducing the deficit.
Under a blueprint plan released on Wednesday, Republicans would cut some $4.5 trillion in taxes and direct congressional committees to cut spending by at least $1.5 trillion over the next 10 years in reductions that could reach as much as $2 trillion. To get to high enough levels to satisfy the cutting goals would require stiff reductions to programs involving health care, education and aid for low-income Americans.
Other money would also be shifted to fund Trump’s priorities with a $100 billion boost to defense spending and $90 billion for the Department of Homeland Security that is running the administration’s increase in deportations.
The blueprint faced its first test on Thursday as lawmakers on the House Budget Committee met for a marathon mark-up hearing to debate whether to advance it to the full House. It was expected to make it through along party lines and could be considered on the House floor once Congress returns from a week-long recess at the end of the month.
Whether the bill is able to pass will provide significant momentum for allowing Trump to quickly implement his agenda after campaigning on trillions in tax cuts and cracking down on illegal immigration. Immigration agencies are already facing obstacles in continuing the quickened pace of removals due to a lack of personnel and funding to increase capacity.
“This budget resolution provides the fiscal framework for what will be one of the most consequential pieces of legislation in modern history, and the principal legislative vehicle for delivering on President Trump’s America first agenda,” said Rep. Jodey Arrington, R-Texas, said at the beginning of the hearing. “The era of wasteful, woke and weaponized government is over.”
Budget negotiations have been difficult for Republicans that are trying to pass party-line bills through the House and Senate with narrow majorities. Johnson can only afford to lose a handful of votes with his 218-215 majority on the package in a conference that has become known for internal disagreements, particularly on spending packages.
Fiscal hawks have taken issue with the level of spending cuts and calling for more while centrist Republicans are hesitant to make deeper cuts to politically popular programs that provide aid. But GOP lawmakers found a compromise to allow the bill to clear the committee level with an amendment that would shrink the level of tax cuts without further cuts to spending.
While the move will please the deficit hawks pushing for bigger spending reductions, it may cause issues for lawmakers in moderate and swing districts that are hesitant of being too aggressive with spending reductions in another example of the delicate balance GOP leadership is dealing with.
The amendment plan got the support of the House Freedom Caucus, whose members on the budget committee are expected to vote to advance it at the conclusion of the mark-up hearing.
“This is step one of many steps — and it is just the beginning — but our government spends too much, and we have to stop that. And the American people deserve to have more money in their pockets. This budget accomplishes both of those two objectives,” said Rep. Chip Roy, a Texas Republican and Freedom Caucus member.
Senate and House Republicans are also working on dueling timelines with senators quickly advancing their fiscal blueprint this week. The Senate Budget Committee approved its plan on Wednesday and could be taken up for a full floor vote as soon as next week.
Senate Republicans also said they would oppose a short-term renewal of the expiring tax cuts in Trump’s 2017 package, which was one of the funding mechanisms to keep costs down for the House bill.
“A temporary extension of these pro-growth and pro-family policies is a missed opportunity. Businesses need certainty while investing in their companies and taxpayers should not fear tax hikes due to Congressional inaction. Congressional Republicans have an historic opportunity to enact this lasting tax relief. Failure to act boldly does a disservice to the American people who entrusted us to deliver in November. Thus, we will not support a tax package that only provides temporary relief from tax,” they wrote in a letter to Trump.
Senators have been pushing for a two-step plan where they pass tens of billions in funding for Trump’s immigration initiatives and defense spending and coming back for trillions in tax cuts later. Sen. Lindsey Graham, R-S.C., has framed the Senate’s bill as a backup plan if House Republicans are unable to come to an agreement that can pass the House.
“To my Republican colleagues in the House, I’m pulling for one big, beautiful bill, but there’s a sense of urgency. I hope you will consider what we do if you cannot produce the one big, beautiful bill quickly,” Graham said on Wednesday.
Democrats have been unanimously opposed to the GOP’s tax cuts and spending cuts in both chambers, claiming the plan will hurt middle-class voters and overwhelmingly benefit wealthy Americans and large companies.
“Let’s be clear, this plan is a Republican betrayal of the middle class. It does not support hard working Americans. It undermines them. Instead of investing in working families, House Republicans have crafted a plan that takes from working Americans to give to their billionaire donors,” said Rep. Brendan Boyle, the top Democrat on the House Budget Committee.