In a narrow 217-215 vote, the House of Representatives approved a budget resolution that includes $4.5 trillion in tax cuts, significant increases in defense and border security funding, and $2 trillion in spending reductions over the next decade. The bill represents a cornerstone of President Donald Trump’s economic agenda, aiming to stimulate growth while curbing federal waste. All Democrats and one Republican, Rep. Thomas Massie (R-Ky.), opposed the measure, citing concerns about its impact on the national deficit.
Key Provisions of the Budget Bill
The budget resolution directs House committees to craft detailed proposals for tax and spending policy changes, which will later be reconciled with the Senate version. Key elements of the plan include:
- Permanent extension of the 2017 Trump tax cuts, which were set to expire in 2025.
- Corporate tax rate reduction from 21% to 18%, aimed at boosting business investment.
- Expanded child tax credits and tax relief for working families to offset inflationary pressures.
- $500 billion in new defense spending over the next decade to strengthen military readiness.
- Increased border security funding, including further investment in the border wall, additional personnel, and enhanced surveillance technology.
- $2 trillion in federal spending cuts, focusing on non-defense discretionary programs and bureaucratic inefficiencies.
House Speaker Mike Johnson (R-La.) praised the passage of the resolution, calling it “a pro-growth, pro-American budget that gives relief to hardworking families while making our nation stronger and safer.”
Democratic Opposition and Concerns
Democrats unanimously opposed the bill, arguing that it would disproportionately benefit corporations and wealthier Americans while increasing the national debt. House Minority Leader Hakeem Jeffries (D-N.Y.) called it “a reckless giveaway to the rich that leaves working families behind.” Critics also expressed concerns about potential cuts to entitlement programs, though GOP leaders insist that Medicare and Social Security will remain untouched.
Rep. Thomas Massie (R-Ky.), the lone Republican to vote against the bill, stated that he could not support the measure due to its impact on the deficit. “Tax cuts are great, but not when they come without corresponding spending reductions,” Massie said.
Next Steps and Senate Outlook
The bill now heads to the Senate, where its fate remains uncertain. While Senate Republicans largely support the tax cuts and spending priorities, some moderates have expressed concerns over potential fiscal impacts. Senate Majority Leader Mitch McConnell (R-Ky.) has indicated that negotiations will take place in the coming weeks, with possible adjustments to spending reductions and tax provisions.
With Trump prioritizing tax cuts as a major component of his second-term economic strategy, Republican leadership is expected to push for swift Senate approval. The administration argues that the tax cuts will spur economic growth, increase job creation, and counter inflationary pressures. However, Democrats are expected to introduce amendments aimed at increasing revenue and maintaining funding for social programs.
