House passes budget plan with tax and spending cuts 

Trillions of dollars worth of taxes and spending were cut in the Republican-backed budget bill. It now heads to the Senate for consideration.

House Republicans narrowly passed a budget plan on Tuesday, which includes $4.5 trillion in tax breaks and $2 trillion in spending cuts, receiving a push from President Donald Trump. 

This plan aims to extend tax breaks and cut spending across federal programs and services.

The big picture: The budget bill faced strong opposition from Democrats who criticized it as harmful to Medicaid and social programs. Some Republicans also expressed concerns over potential backlash from constituents, particularly regarding the scale of planned cuts to programs like Medicaid and food stamps.

  • Speaker of the House Mike Johnson faced a challenging task to advance the GOP budget blueprint with a slim majority and dissent from both Democrats and some Republican lawmakers. President Trump was actively lobbying GOP lawmakers to secure their support.
  • The final vote tally was 217-215, with all Democrats voting against the bill.

What we’re watching: Despite the bill’s passage, the process is anticipated to be complex and time-consuming, with additional significant votes on unrelated matters like preventing a government shutdown also on the horizon.

Driving the news: Democrats labeled the package as a “betrayal” and a “Republican rip-off,” decrying it as a blueprint for American decline. They underscored their concerns about potential cuts to Medicaid and social programs that could negatively impact Americans.

  • Republicans encountered challenges in navigating the delicate balance between implementing spending cuts and addressing constituents’ needs, especially since reductions to programs like Medicaid and food stamps are under scrutiny.
  • The GOP leadership emphasized that key programs like Medicaid were not specifically identified in the initial budget framework but assured lawmakers that there would be ample time for debates to shape the final package and safeguard critical programs.
  • GOP deficit hawks raised concerns about the bill potentially adding to the nation’s debt load, cautioning against overlooking the substantial cost of tax breaks compared to the proposed spending cuts of $2 trillion.
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