Despite internal disagreements, the House of Representatives passed a budget resolution that could enable the passage of President Trump's economic agenda. This resolution, however, lacks policy details, and Republicans have yet to agree on specific spending cuts and tax reductions. The most politically sensitive aspect involves Medicaid, yet the word only appears once in the 70-page document.
The main purpose is procedural: the resolution allows Republicans to utilize the reconciliation process to bypass the Senate filibuster. The Senate's version of the budget prioritized making Trump's 2017 tax cuts permanent, rather than reducing spending, leading to conflict with House conservatives who demanded deeper spending cuts.
House Speaker Mike Johnson faced significant internal opposition. Even with President Trump's intervention, several conservative Republicans initially opposed the proposal. Key points of contention included:
Conservative concerns stemmed from the Senate's budget baseline adjustments and the perceived lack of commitment to actual cuts, prompting concerns that the final bill might not deliver on the promised reductions.
Ultimately, assurances from Johnson and Senate Majority Leader John Thune, along with potential threats of reprisal, swayed conservative holdouts, leading to a narrow passage. However, significant challenges remain. The budget experts warn the $1.5 trillion in spending cuts will be difficult without significant impacts to Medicaid or other safety-net programs. Both conservative and moderate Republicans continue to express their concerns, suggesting that the hardest fights are yet to come.
While the budget resolution represents a win for Trump's agenda, the lack of substantive agreement and the numerous internal conflicts significantly reduce its certainty. The most difficult decisions are still pending, making the passage of the final bill far from guaranteed. The intense pressure to pass the economic agenda before the 2017 tax cuts expire, however, might yet force a resolution.