Speaker Johnson is attempting to pass a Trump-backed budget framework through the House, facing opposition from deficit hawks. Secretary Bessent is working to address market concerns related to tariffs. The House narrowly passed a framework in February, and the Senate adopted a less ambitious resolution. This disparity has created conflict, especially among House Republicans.
President Trump is actively involved, holding meetings with Republican colleagues to garner support. While some representatives have changed their stance after meeting with the President, significant opposition remains. Congressman McCormick estimates as many as 40 Republicans could vote against the bill. The lack of contact with the administration by key figures like Congressman Norman highlights the divide.
Key Republicans who remain unconvinced cite a need for more concrete commitments to fiscal responsibility and balanced budgets, with concerns that the midterms will make spending cuts more difficult next year.
The budget resolution's failure could negatively affect the stock market. Four days of losses preceded the vote, and failure could further spook investors, given that the resolution is linked to Trump's planned tax cuts. Market futures suggested a potential loss of about 1% at the open on Wednesday. Secretary Bessent's meetings with the Republican Study Committee aim to address tariff concerns impacting the markets.