U.S. House Speaker Mike Johnson, R-La., is working to assemble a budget reconciliation package that incorporates key agenda items of former President Donald Trump, including border security, national defense, and energy funding.
Johnson also seeks to extend Trump’s 2017 Tax Cuts and Jobs Act, which could cost over $4 trillion over the next decade if renewed. However, Republican hardliners in the House have so far resisted his efforts.
Fiscal conservatives on the House Budget Committee, such as Rep. Chip Roy, R-Texas, rejected Johnson’s reconciliation package. While it included all of Trump’s major priorities, it only featured less than $700 billion in spending cuts. These Republicans insist they will not support a reconciliation package extending Trump’s tax cuts unless it includes at least $1 trillion in offsetting reductions.
Republicans are negotiating potential cuts to federal programs to fund Trump’s policy initiatives. Meanwhile, a looming government shutdown demands action, as Congress must pass a resolution by March 14. In December, lawmakers had already postponed the deadline for a second time by passing a Continuing Resolution.
Further complicating matters, Senate Republicans have grown frustrated with the House’s slow progress. Senate Budget Committee Chair Lindsey Graham, R-S.C., introduced a separate, fully offset $342 billion budget resolution, which prioritizes Trump’s defense, energy, and border policies while delaying the tax cut extension for a future bill.
“I have tremendous respect for Speaker Johnson, Chairman Smith, and my House Republican colleagues,” Graham said on X. “I hope the House will move forward soon, but we cannot allow this moment to pass, and we cannot let President Trump’s America First Agenda stall.”
Some Republicans worry that delaying the tax cuts could put them at risk, as both Democrats and fiscal conservatives grow increasingly hesitant to approve large spending measures. The national debt, currently over $36 trillion, surged by $2.5 trillion in fiscal year 2024 and is projected to reach $40.9 trillion by 2027.
