Senate Republicans are gearing up for a major battle to revise the House-approved budget resolution, aiming to make significant modifications to align with their priorities.
The House Budget Plan: A Step Forward, But Not Enough
Speaker Mike Johnson (R-La.), backed by former President Donald Trump, successfully advanced the House’s budget proposal. This plan is key to enacting Trump’s legislative agenda, but Senate Republicans have raised concerns over key aspects, particularly the failure to make the 2017 Trump tax cuts permanent and the proposed deep Medicaid cuts required for funding.
Although Senate Republicans were relieved that the House moved the bill forward, they now face the challenge of bridging differences and refining the proposal to better reflect their objectives.
Senate Republicans Push for Tax Cuts and Policy Revisions
Senate Majority Leader John Thune (R-S.D.) acknowledged the complexity of the task, stating, “It’s complicated. It’s hard. Nothing about this is going to be easy.” He emphasized that Senate Republicans need to expand and improve upon the House package.
A key priority for the Senate is ensuring that Trump’s tax cuts become permanent. While the House plan extends these cuts, it caps them at $4.5 trillion—an amount insufficient to make them permanent. Thune and other top Republicans insist on securing a long-term solution for tax reductions.
Trump Backs Senate Efforts
Thune and his colleagues gained a boost when Trump signaled his support for their plan early Wednesday. Senate Finance Committee Chair Mike Crapo (R-Idaho) reinforced the need for adjustments, noting that the Senate will now focus on refining tax provisions based on the House’s budget figures.
“I haven’t developed a top line [for taxes] yet,” Crapo said. “We’re going to start working on what we need to do.”
A Budget Maneuver to Avoid Offsetting Cuts
To facilitate tax cuts without demanding equivalent spending reductions, Senate Republicans are exploring a budget strategy that would categorize the tax cuts as a continuation of existing policy. Speaker Johnson expressed support for this approach, stating, “We’re not introducing new law, we’re extending the existing law, and by definition, that’s what current policy means.”
Medicaid Cuts: A Major Roadblock
One of the most contentious aspects of the House budget is the proposed $880 billion in savings directed by the Energy and Commerce Committee. Many senators argue that such reductions are unrealistic without cutting Medicaid, a move they strongly oppose.
More than 40 states have expanded Medicaid under the Affordable Care Act, and some Republican senators, including Josh Hawley (R-Mo.), refuse to support a plan that slashes funding for millions of Americans.
“I’m not going to vote for Medicaid cuts,” Hawley said, pointing out that over 20% of Missourians rely on Medicaid or the Children’s Health Insurance Program (CHIP). “It’ll need to be changed.”
Trump also weighed in on the issue, reassuring that Medicaid, Medicare, and Social Security would not be affected. “We’re not going to touch it,” he said, adding that he would focus on reducing fraud in the program instead.
Next Steps: Senate and House Must Align
Senate Republicans are working on revising the House budget, and discussions took center stage at Wednesday’s Senate luncheon, which included White House Chief of Staff Susie Wiles. During the meeting, Thune expressed skepticism about whether the House’s plan fully meets the necessary objectives.
For the budget reconciliation process to proceed, both chambers must pass identical resolutions. This requirement places additional pressure on Senate Republicans to modify the bill while ensuring it can still gain approval from the House.
Debt Limit Debate Continues
Another unresolved issue is whether to include a debt limit increase in the final reconciliation package. While House GOP leaders incorporated it in their proposal, the Senate has yet to make a decision.
Sen. John Kennedy (R-La.), a member of the Budget Committee, said he supports including the debt limit increase, calling it one of the “gnarly” issues that lawmakers must eventually address.
The Challenge of a Single-Bill Approach
Despite concerns, Senate Republicans have committed to a single massive budget package, following months of warnings that Speaker Johnson might struggle to pass multiple smaller bills. Some lawmakers remain doubtful about the strategy’s viability, fearing repeated last-minute negotiations.
“It’s not perfect, and I know there’s some differences of opinion,” said Sen. John Cornyn (R-Texas). “But to me, that’s a good place to start.”
He further warned that relying on the House to pass multiple bills would be risky, adding, “If we’re depending on the House to pass multiple bills, we’re going to be on the knife’s edge each time to see whether they have the votes or not.”
With high stakes and tight deadlines, Senate Republicans must now navigate internal differences and coordinate with House lawmakers to finalize a budget that aligns with Trump’s vision while addressing their concerns.
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