By Bo Erickson
WASHINGTON (Reuters) – Major divisions arise among top Republicans in the U.S. House of Representatives as they aim to advance President Donald Trump’s tax cuts this week. Concerns linger within the caucus regarding the lack of substantial spending cuts in the Senate’s approved budget blueprint.
While there is consensus within the party on extending Trump’s 2017 tax cuts and funding priorities such as immigration enforcement and military expenditures, a rift exists on how to offset the projected $5.7 trillion increase in national debt over the next decade. Deficit-conscious members, especially in the House, advocate for approximately $2 trillion in spending reductions during this period.
House Democrats, as well as advocates for public health and anti-poverty initiatives, warn that achieving such cuts without severely impacting Medicaid for low-income individuals and those with disabilities would be challenging. The recent stock market turbulence following Trump’s tariff implementations further complicates the economic landscape, with fears of inflation and a potential recession looming.
Similar to the Senate’s budget resolution passage on Saturday with a 51-48 vote, the tax cuts legislation in the House will also utilize the reconciliation process to circumvent the typical 60-vote threshold for most bills. Some House Republicans have raised doubts about the Senate’s proposed spending cuts, with concerns that it falls short compared to the House’s resolution and could lead to increased borrowing.
Representative Jodey Arrington of Texas, the top Republican on the House Budget Committee, criticized the Senate’s approach as insufficient. The Committee for a Responsible Federal Budget highlighted discrepancies between the Senate and House plans, emphasizing the need for reconciliation.
As the House prepares for a vote on the budget process, reconciling differences between the Senate and House versions remains a key challenge. Fiscal conservatives in the House, including Representative Andy Harris of Maryland, question the Senate’s commitment to spending cuts and urge clearer plans to align with Trump’s priorities.
The Senate’s proposal includes a higher debt ceiling increase compared to the House, setting the stage for further negotiations in Congress. Speaker Mike Johnson and House leadership stress the importance of significant spending reductions while safeguarding essential programs to secure passage.
MEDICA
Senator Josh Hawley, a Republican from Missouri, informed reporters that Trump had given him a firm assurance last week that Medicaid benefits would not be reduced. This development would necessitate adjustments in the plans of House Republicans, who are seeking $2 trillion in spending cuts. These cuts would involve revamping Medicaid and food assistance programs, as well as eliminating popular environmental policies. House Democrats have voiced their opposition to the proposed spending reductions, expressing concerns about the devastating impact on various vulnerable groups, such as children, women, older Americans, and individuals with disabilities, along with potential closures of hospitals, nursing homes, and community health clinics. The spending disparities between the House and the Senate are partly due to a unique calculation approach adopted by Republican senators, who argue that the implementation cost of Trump’s agenda, including tax policies, is significantly lower than anticipated. This approach has been criticized by nonpartisan analysts as a “gimmick” and “fiscally unprecedented.” Republican Senator Bill Cassidy from Louisiana raised concerns about the potential implications of this calculation method on future spending decisions. Despite these reservations, Cassidy voted to proceed, citing economic uncertainties.
