Tensions are running high in the US House as Republicans debate covering Trump's extensive tax cut while confronting a nearly 2 trillion deficit. The slim GOP majority must pass a budget resolution that aligns with Trump's agenda, testing the party's resolve and unity.
The Republican-controlled House of Representatives is attempting to resolve internal disagreements over the funding of President Trump's massive tax cuts, as conservatives are adamant about lowering the almost $2 trillion yearly government deficit.
To pass Trump's massive agenda of tax cuts, immigration reform, energy deregulation, and increased military spending, the House Republicans must vote in a fiscal 2025 budget resolution within weeks, and they must do it with near-total unity despite their narrow 218-215 majority.
Some were publicly concerned that House Speaker Mike Johnson's leadership team might refuse to cut spending to pay for Trump's $6 trillion tax-cut plan and address the nation's over $36 trillion debt before a three-day policy retreat begins in Miami on Monday.
The tax cuts enacted by President Trump under the Tax Cuts and Jobs Act of 2017 (TCJA) are scheduled to expire at the end of this year, but Republicans have promised to keep them in place. Doing so would cost over $4 trillion over ten years, according to the independent Committee for a Responsible Federal Budget. Trump's campaign promises to eliminate taxes on gratuities, overtime, and Social Security benefits might add another $1.8 trillion to that figure.
The Republican senators' goal to enact Trump's agenda by May could be derailed if they are unable to reach an agreement. This strategy involves a tactic to bypass Senate Democrats, which will require nearly all of the fractious majority to agree.
"Most of us support the TCJA. I don't think that's the issue. We all want to support what President Trump is doing. But we also recognize the need to get our fiscal house in order," said House Freedom Caucus member Michael Cloud.
Johnson has stated his intention to complete parts of a comprehensive legislative package in order to finance Trump's agenda items. Also, Republicans have a decision to make: either provide disaster aid to areas in Los Angeles that have been damaged by wildfires, or raise the federal government's debt ceiling, which Congress must do later this year to prevent a catastrophic default.
Before lawmakers departed Washington last week, Johnson addressed reporters and said that his caucus hoped to reach an agreement in Miami, adding that there are other options on the table.
House Minority Leader Hakeem Jeffries condemned Republican proposals, calling them an alliance against the United States. Working families, middle class families, children, seniors, and veterans will all feel the negative effects, he said.
In addition, Jeffries stated that the Affordable Care Act's Medicaid program and government-subsidized healthcare for uninsured people would be undermined by the Republican plan.
Republicans privately fear that their constituents could be negatively impacted by the hardliners' obsession on substantial deficit reduction, which could lead to cuts to Medicaid funding for hospitals and other community services. They also claim that finding sufficient spending cuts to pay for Trump's agenda is a huge challenge.
Retired Republican Representative Ralph Norman stated that the package must significantly lower the deficit in order for it to be considered deficit neutral.
Another possible stumbling block is the increasing cost of borrowing money due to the growing U.S. deficit, which is putting pressure on the bond market. Additional cause for concern could be a substantial widening of the deficit.
During the debate, we will see if the demands of Trump or the determination of conservative Republicans to stick to their traditional goal of reducing the deficit are stronger.
"The president said very clearly what he wants. Now the question is, what do we want? This is an equal body ... We're supposed to have different opinions. If we don't, we're in trouble, because we're no longer a constitutional republic," said Representative Richard McCormick.
From party-favored measures, like doing away with green energy tax incentives, to more contentious ones, like eliminating the federal home mortgage interest deduction, the House Budget Committee's 50-page menu of suggestions contains trillions of dollars.
Conservatives in the House and Senate are also opposed to Trump's plan to raise $1.9 trillion by imposing a 10% tax on imported products.
Leading fiscal hawk and Republican Senator Rand Paul says he doesn't support tax increases and calls tariffs a tax.
Despite Republicans' best efforts to reach a compromise, Representative Tim Burchett has voiced concern that the proposed additional $200 billion for the Pentagon could divert funds that could be better utilized to reduce the debt. However, he refrained from explicitly stating that he would be opposed to the package if such a result were to occur.