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Budget Showdown Looms as House and Senate Republicans Clash Over Spending Plans

House and Senate Republicans are divided over budget negotiations, with competing plans to extend the 2017 tax cuts and make deep spending cuts. Will Trump’s influence shape the final deal?

House Speaker Mike Johnson (R-La.) speaks with reporters as he walks to his office at the U.S. Capitol, on Feb. 4, 2025. | Francis Chung/POLITICO

GOP Divided on One-Bill vs. Two-Bill Strategy Ahead of Critical Negotiations

Next week will be a high-stakes battle over the federal budget, as House and Senate Republicans push competing plans to extend the 2017 tax cuts while making significant spending reductions. Despite Speaker Mike Johnson’s promise to release a budget framework, full details are now expected Monday, with House Republicans working through the weekend to finalize their proposal.

House Republicans Struggle to Finalize Budget Plan

After a series of meetings on Thursday, including a White House gathering where Donald Trump had limited involvement, House GOP leaders continue to fine-tune their one-bill approach. Majority Leader Steve Scalise confirmed that no agreement has been reached on overall spending limits, further delaying progress.

Speaker Mike Johnson acknowledged that a few final details remain unresolved, with the House Budget Committee aiming for Tuesday as a target date—though delays until later in the week are possible.

Republicans are considering as much as $2 trillion in spending cuts to keep the budget plan deficit-neutral. Some tax provisions may not be permanent, but Johnson insisted the final package “should” meet its budget-neutral goal.

Senate Republicans Push Two-Bill Approach with Trump’s Support

Meanwhile, Senate Budget Chair Lindsey Graham is preparing to advance a two-bill strategy, which he claims has enough support to move forward next week. Senate Majority Whip John Barrasso and Sen. Rick Scott have urged the Senate Budget Committee to proceed as planned.

GOP senators will meet with Trump at Mar-a-Lago tonight to discuss their approach. While Johnson won’t attend that gathering, he suggested he’ll review his own plan with Trump later. Notably, both Johnson and Trump will be attending Super Bowl-related events this weekend, potentially delaying further discussions.

Key Political Fights to Watch

  • House-Senate Spending SplitTop Senate appropriator Susan Collins admitted that budget talks with Democrats remain stalled, saying, “I would not say that we are close.” With a government shutdown deadline looming on March 14, this impasse raises concerns about another potential fiscal crisis.
  • Johnson-Netanyahu Meeting – Speaker Mike Johnson is scheduled to meet Israeli Prime Minister Benjamin Netanyahu at 10 a.m. today. The meeting was rescheduled after Johnson canceled a Thursday photo-op to attend the White House GOP budget gathering.
  • Contentious NominationsDemocratic senators are trying to slow down confirmation votes on Tulsi Gabbard (for Director of National Intelligence) and Robert F. Kennedy Jr. (for Health and Human Services Secretary). Sen. John Fetterman has voiced opposition, but no Republicans have publicly opposed either nominee.

What’s Next?

With House Republicans racing to finalize their budget framework and Senate Republicans pushing a competing approach, the GOP is on a collision course over spending and tax policy. Trump’s influence could be decisive in shaping the final package, but with just weeks before the shutdown deadline, time is running out for Republicans to unify their strategy.

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