House Leaders Unveil Budget Plan for Trump's Tax Cuts

What Happened?

House Republicans released a budget resolution aimed at supporting the Trump administration and the priorities of funding the federal government long-term.

The plan includes up to $4.5 trillion in tax cuts and a $4 trillion increase in the debt limit, according to reports.

Several House committees are also directed to cut spending by at least $1.5 trillion on the mission of reducing spending by $2 trillion over the next decade.

House Speaker Mike Johnson expressed optimism Thursday about the GOP resolution on Capitol Hill.

'I expect it to pass — unanimously,' Johnson told reporters despite some pushback from other members.

Many reportedly hope the resolution sets up the path toward passing their massive domestic policy bill in the last week of February.

Senate leaders issued a letter Thursday informing President Trump that they would oppose the idea of a short-term renewal of expiring tax cuts.

'You were elected with a mandate to do big things. One of those big things is to provide lasting tax relief for small businesses and families across the country,' Senate Finance Committee members stated.

'We write to express our support for your position that the expiring provisions of the Tax Cuts and Jobs Act must be permanent and not sunset.'

Trump’s domestic policy priorities reportedly include border funding, energy policy, and an extension of his 2017 tax cuts.

Some view the measure as a warning to congressional members as they all discuss the options for reaching the goals of the new administration and addressing the debt deficit.

Why it Matters

Senate leaders view a temporary extension of tax cuts as a 'missed opportunity.'

According to the letter, taxes would increase for Americans in every income group and nearly six million jobs would be at risk if not resolved long-term.

'There’ll be a lot of negotiations back and forth,' Speaker Johnson told reporters. 'Our objective is to fulfill all the president’s campaign promises and the full agenda, so we have time to do that.'

Some reports view the 45-page plan as more than just a policy blueprint as it provides specific directions to House committees to rearrange money flow in the federal government.

These planned proposed cuts include social services like Medicaid.

The Energy and Commerce Committee, in charge of health care spending, is asked to cut $880 billion over the decade.

Other key requests include a $330 billion reduction in spending from the Education and Workforce Committee, transportation and infrastructure to find at least $10 billion in cuts through 2034, and a $230 billion reduction from agriculture.

Federal agency leaders have recently been informed to prepare for large-scale layoffs after the Trump administration's order outlined limits to federal departments’ ability to hire.

The order also granted more authority to the Department of Government Efficiency (DOGE) to carry out these mass actions.

Recently, the National Treasury Employees Union filed a lawsuit amid attempts to shut down the Consumer Financial Protection Bureau (CFPB) as another cost-cutting measure.

How it Affects You

Trump and his administration aim to shrink the U.S. government and swiftly address federal spending.

So far, DOGE has claimed it's saving the federal government nearly $1 billion per day by taking these actions.

While many have challenged Trump's actions as 'unconstitutional,' Republican leaders are backing his reduction methods to address the nation's debt deficit.

This could set up for a key showdown in the coming months with much at stake.