The Republican House Budget resolution out Wednesday reveals the Ways and Means Committee will get $4.5 trillion to lock in tax cuts, one of President Donald Trump’s major proposals.
The GOP also seeks an increase in the debt limit by $4 trillion, the resolution says.
The plan, which includes a substantial increase in the debt limit, highlights the party’s commitment to making permanent the tax cuts enacted during the Trump administration.
Why It Matters
Republicans are divided on how to move forward with Trump’s policies during the ongoing budget reconciliation process. Some favor a single comprehensive bill that includes as much of Trump’s agenda as possible, while others prefer two separate bills that would deliver incremental victories for the president.
House Republicans are at odds over uniting around a comprehensive legislative package that covers border security, energy policy, and tax measures. The Freedom Caucus’ move to introduce its own tax plan has further deepened divisions, complicating efforts to advance the proposal backed by House Ways and Means Chair Jason Smith, a Republican from Missouri.
What To Know
The newly released House GOP resolution proposes a $4 trillion debt ceiling increase while allocating $4.5 trillion in new deficits for the tax-writing Ways and Means Committee. This move aims to extend tax cuts that many Republicans argue are crucial for economic growth.
House Freedom Caucus Chair Andy Harris, a Republican from Maryland, announced that the group will present its own tax plan this week, aligning with former President Donald Trump’s priorities. This complicates House Speaker Mike Johnson’s efforts to unite Republicans behind a single strategy.
The GOP budget also allocates $110 billion for the Judiciary Committee and $90 billion for the Homeland Security Committee, particularly for immigration oversight. It outlines a goal of cutting mandatory spending by $2 trillion, though specific details remain unclear. The budget is expected to serve as the starting point for reconciliation, a process that allows certain fiscal measures to pass the Senate with a simple majority.
Boyle said Wednesday: “Their plan blows up the deficit and sticks the middle class with the bill, whether through higher prices, deep cuts to essential programs, or both,” said the Philadelphia lawmaker.
Adam Michel, Director of Tax Policy Studies at the Cato Institute, said: “Instead of reducing spending to offset the entire tax cut, the House plan relies on an overly optimistic $2.6 trillion in higher revenues from assumed faster economic growth…However, the committee’s growth target is all but impossible under the president’s threatened and imposed tariffs, foreign retaliation, and immigration restrictions. Spending cuts, not assumed future growth, are the only way to shrink the federal government’s burden on American taxpayers.”
