After failing to sway holdouts on Wednesday, Speaker Mike Johnson managed to convince enough members to approve a budget blueprint on Thursday that includes some of the tax cuts President Donald Trump has called for. The blueprint was approved by a 216-214 margin.
President Trump has urged Congress to pass a tax bill, which includes proposed tax breaks like the elimination of taxes on Social Security and tips for service workers. There’s also discussion around an automobile deduction that could make car ownership more affordable by allowing deductions on auto loan interest.
However, these measures hinge on the passage of a comprehensive tax bill, which cannot move forward without agreement on the budget resolution.
The House of Representatives had already passed a version advocating for $1.5 trillion in cuts. In stark contrast, the Senate’s proposal, passed last week, only calls for $4 billion in cuts, revealing a significant divide between the two chambers.
While there was angst over the Senate's proposal, ultimately enough Republicans backed the Senate's version for it to be approved on Wednesday.
RELATED STORY | Consumer prices dip in March; economists cautious about future trends
Johnson had reportedly worked the phones to negotiate with his colleagues to secure the votes needed for passage.
The White House celebrated the passage of Thursday's bill.
“This vote is more than a budget win; it’s a statement of purpose and strength, which affirms the Trump Administration’s commitment to delivering growth and opportunity," said Treasury Secretary Scott Bessent.
In a press conference today, Johnson, alongside Senate Majority Leader John Thune, underscored the necessity of aligning their budgetary efforts with President Trump’s America First agenda. The speaker emphasized the importance of fiscal responsibility, stating their commitment to delivering promises on pivotal issues such as border security, tax reductions, and regulatory reforms aimed at stimulating the economy.
“Our goal is to find at least $1.5 trillion in savings for the American people while simultaneously protecting essential programs,” Johnson said. He dismissed Democratic concerns about severe cuts to Medicaid and Social Security as unfounded, asserting that vital services would remain intact.
Democrats have remained unified in their opposition to the budget blueprint.
"We are unified in our fight to help the American people, to keep costs down, to preserve Medicaid, Medicare, Social Security, veterans, and to prevent tax cuts for the billionaires who rich enough already, while they're busy fighting with each other, because their programs are so unpopular with the American people," Senate Democratic Leader Chuck Schumer said.
RELATED STORY | Trump signs orders to cut energy regulations and investigate former officials
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
