Listen To Story Above

House Republicans are pressing ahead with President Donald Trump’s tax cut legislation this week, though internal disagreements persist over the adequacy of spending reductions in the Senate-approved budget framework.

While Republican lawmakers broadly support extending Trump’s 2017 tax cuts and funding priorities like immigration enforcement and military spending, there’s contention over how to offset the projected $5.7 trillion addition to national debt over the next ten years, according to nonpartisan analysis.

House fiscal conservatives are advocating for roughly $2 trillion in spending reductions during this period. Meanwhile, House Democrats and healthcare advocates warn this target could require severe cuts to Medicaid services for vulnerable populations.

The situation is further strained by recent market turmoil following Trump’s announcement of broad import tariffs, with economists warning of potential inflation and recession risks.

The tax legislation will utilize the reconciliation process, similar to the Senate’s 51-48 budget resolution vote, allowing it to bypass the typical 60-vote requirement.

House Republicans have expressed concern about the Senate’s approach to spending cuts. The Committee for a Responsible Federal Budget’s analysis revealed the Senate plan requires just 0.2% of the budget cuts compared to the House version.

“I can’t support House passage of the Senate changes to our budget resolution until I see the actual spending and deficit reduction plans to enact President Trump’s America First agenda,” Harris said.

The Senate proposal also includes a $5 trillion debt ceiling increase, exceeding the House version’s limit. Congress must address the borrowing cap by summer to prevent defaulting on $36.6 trillion in debt.

Republican leadership, including House Speaker Mike Johnson, urged passage in a letter to colleagues, emphasizing that “the final reconciliation bill must include historic spending reductions while protecting essential programs.”

Medicaid has emerged as a critical point of debate. Senator Josh Hawley revealed Trump’s recent “unequivocal” commitment against Medicaid cuts, potentially forcing House Republicans to revise their strategy for achieving $2 trillion in spending reductions through changes to various assistance programs and environmental policies.

House Minority Leader Hakeem Jeffries voiced strong opposition to the proposed cuts, stating on MSNBC’s The Weekend, “Children will be devastated. Women will be devastated. Older Americans will be devastated. Everyday Americans with disabilities are going to be devastated. Hospitals and nursing homes and community health clinics are going to close.”

The spending disparities between chambers partly stem from Senate Republicans’ unique calculation method, which assumes lower implementation costs for Trump’s agenda by treating it as an extension of existing tax cuts.

The CRFB criticizes this approach as a “gimmick” and “fiscally unprecedented,” noting that the 2017 tax cuts’ full cost of $3.8 trillion is excluded from calculations.

Senator Bill Cassidy expressed reservations about this accounting approach before supporting the measure, stating, “It’s never been done before in a setting like this. I think it establishes a dangerous precedent.”