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The U.S. House of Representatives passed a budget solution that requires tax payments and spending to be levied trillions of dollars, a major victory for President Donald Trump to attempt to make a comprehensive change in fiscal policy.
The resolution passed 215 votes after House Speaker Mike Johnson’s campaign pushed Republicans to a “big beauty bill” that supported Trump.
The bill will hold another round of budget talks in the Senate, proposing tax cuts of $450 million, cutting spending of about $2 and providing hundreds of billions of dollars for military and border security over a decade.
House Republican leaders said: “Now, House Republicans move Congress to President Trump’s nationwide first agenda, not just part of it.”
Because Republicans have a majority in the House razor, even a few votes that disagree within the party will undermine the passage of the bill.
Three House Republicans – Tim Burchett, Victoria Spartz and Warren Davidson said they would vote against it, but everyone fell behind the Speaker. Thomas Massie is the only Republican who opposes it. Before the vote, Massie posted on X: “If the Republican budget passes, the deficit will get worse, not better.”
The budget is a non-constrained resolution that outlines fiscal goals. They signal to the Congressional committee how much or less spending is added, but don’t make specific plans that should be targeted.
Once the Senate passes the budget, Republicans in Congress can begin a process known as a “reconciliation” and eventually pass legislation without democratic support to expand tax cuts enacted during Trump’s first term in 2017.
The bill directs the House Energy and Commerce Committee to cut $880 billion in spending, a move widely seen as a Medicaid health insurance program for low-income Americans. Similarly, the Agriculture Commission is calling on $20 billion to reduce spending to target a food aid program called the Supplementary Nutrition Assistance Program.
According to data from non-partisan committees of the non-partisan federal budget, the new measures will increase the deficit by at least 2.8 tons in 2034.
“It’s really incredible, when facing millions of dollars in deficits and downgraded debt toward record highs, the legislators’ response is to make themselves through budgets to make themselves over the next decade,” said Maya MacGuineas, president of the committee. trillions of dollars in debt added.”
But Joshua Bolten, CEO of the Business Roundtable Lobby Group, praised: “Houses that promote fiscal 2025 budget solutions. The House vote marks Congress in protecting and enhancing tax reforms for U.S. businesses, A critical moment for the economic benefits brought by workers and families.”
The House budget will also raise the debt ceiling by $4, which will temporarily eliminate the threat of debt defaults.
Democrats describe the budget as a “shame.” The leader of the NDP coalition, a moderate group of Democratic lawmakers, said: “It betrays working families by cutting funds from key programs they rely on to help pay bills and put food on the table, while the Republican giant giants The giants, however, are donors like Elon Musk, with trillions of dollars in tax cuts.”
Johnson faces resistance from Republicans, fearing the potential impact on Medicaid and those who believe the bill has on spending.
The party’s leaders defended the layoffs, insisting they will stimulate economic growth and limit the increase in deficits with other Trump measures, such as tariffs. Independent analysts question the extent to which economic gains will offset the deficit increase.
The bill was passed as Congressional leaders are fighting legislation to avoid shutdowns on March 14.
The U.S. dollar and stock index futures grew during the morning trading period in Asia, with the S&P 500 and the Nasdaq 100 gaining 0.3% and 0.5% respectively.
The dollar strengthened 0.1% against a basket of trading partners, while the 10-year term yield rose by 0.03 percentage points. Bond yields are inversely proportional to the price.
Other reports on James Politics in Washington
