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House Speaker Mike Johnson unveiled a fresh budget proposal Monday evening, presenting a plan that aims to balance substantial spending reductions with domestic policy initiatives.
According to Politico, the proposal outlines spending cuts ranging from $1.25 trillion to $1.5 trillion. While this figure exceeds Johnson’s previous proposal to GOP conference members, it falls short of the $2.5 trillion reduction sought by conservative members.
The plan also incorporates tax cuts at a lower level than the $4.7 trillion figure discussed during Thursday’s White House meeting, Politico reported. This development comes as Senate Republicans prepare for a Wednesday budget committee vote to advance their two-track approach to implementing President Donald Trump’s budget agenda, as noted by NBC News.
RACE FOR RECONCILIATION: "MIKE JOHNSON NEEDS TO STEP IT UP"@KevinPosobiec and @MichelleBackus_ discuss it is not about the needy it is about the greedy as congress looks to cut federal spending.@JackPosobiec pic.twitter.com/q9m8KbrbZa
— Real America's Voice (RAV) (@RealAmVoice) February 11, 2025
During his Fox News Sunday appearance, Johnson acknowledged the challenges of achieving Republican consensus given their slim House majority. He emphasized their commitment to finding sufficient savings to counterbalance various priorities, including the extension of 2017 tax cuts set to expire this year and the exclusion of tip income from taxation.
The Speaker’s latest proposal was distributed to key House Republicans Monday night, with plans to present it during Tuesday morning’s closed-door conference meeting, according to Politico. When House Majority Leader Steve Scalise and other senior Republicans sought input from House Budget Committee Chairman Jodey Arrington regarding his more conservative committee members’ potential response, Arrington expressed uncertainty.
Although GOP leaders and conservatives appeared close to reaching an agreement for up to $2 trillion in spending cuts by Friday, complications arose when Trump expressed opposition to significant Medicaid reductions. Politico reported that Republican leadership informed members that Trump had not yet endorsed the substantial Medicaid cuts necessary to achieve an additional $800 billion in savings.
The Republican strategy involves utilizing special budget reconciliation procedures to advance their comprehensive border, energy, and tax package.
Reuters contributed to this story.
My dear friend Speaker Johnson is right. Like President Trump, I prefer “one big beautiful bill” that provides funding to implement the Trump border security agenda and a boost in military spending, makes the Trump tax cuts permanent and includes substantial spending reductions.… pic.twitter.com/LcIQeH3dgP
— Lindsey Graham (@LindseyGrahamSC) February 10, 2025
