People look the U.S. Capitol on Capitol Hill in Washington, U.S., November 23, 2024. REUTERS/Benoit Tessier/File Photo
U.S. House Narrowly Passes Budget Plan to Advance Trump-Era Tax Cuts
April 10, 2025 — WASHINGTON — The U.S. House of Representatives on Thursday approved a budget resolution that paves the way for extending former President Donald Trump’s 2017 tax cuts, overcoming opposition from Republican fiscal conservatives who criticized the plan for insufficient spending reductions.
The vote passed narrowly by 216 to 214, allowing Republicans to use budget reconciliation to pass forthcoming tax legislation later this year without needing Democratic support in the Senate.
Blueprint Lays Foundation for Major Tax and Policy Changes
The legislation, a general budget framework lacking detailed provisions, sets the stage for Republicans to advance key elements of Trump’s policy agenda. In addition to extending the 2017 tax cuts, the resolution outlines objectives such as enhancing border security and increasing U.S. energy production.
The plan includes approximately $5 trillion in tax cuts and is projected to add an estimated $5.7 trillion to the national debt over the next decade.
House Speaker Mike Johnson delayed the vote from Wednesday to Thursday after facing resistance from some Republican members dissatisfied with the spending cut provisions. The final version includes a minimum of $4 billion in cuts—well below a prior House-approved version that called for $1.5 trillion in reductions. Two Republicans ultimately voted against the resolution.
Senate Republicans defended the $4 billion figure as a baseline that does not preclude further spending reductions in future legislation.
Following the vote, Trump endorsed the outcome on social media, calling it a historic step toward what he described as “one of the Greatest and Most Important Signings in the History of our Country.”
Concerns Over Fiscal Impact Amid Trade-Related Economic Risks
The budget debate coincides with heightened volatility in financial markets driven by President Trump’s recent tariffs on imported goods. Economists have warned of potential economic contraction and falling federal revenues if a global trade war materializes.
The U.S. Treasury reported on Thursday that customs duties in March rose to $8.75 billion—the highest level since September 2022—attributed in part to the new tariffs implemented since February. Despite this increase, the revenue generated remains far below what would be needed to offset the cost of extending the tax cuts.
The tax overhaul, a signature achievement of Trump’s first term, is due to expire by the end of 2025 without congressional action. Speaker Johnson argued that extending the cuts sends “a very strong signal to the markets, to investors, job creators, entrepreneurs and the people that make the economy run.”
Republicans have also proposed expanding tax relief to cover overtime wages, tipped income, and Social Security benefits, in line with Trump’s campaign promises. Nonpartisan analysts estimate that such provisions could push the cost of the tax package above $11 trillion over ten years.
Intra-Party Divisions and Legislative Challenges
Despite the resolution’s passage, tensions within the Republican caucus remain. Some party members criticized the hardline tactics of fiscal conservatives who had pushed for deeper cuts.
“If it never makes it to the president’s desk, it’s never going to become a law,” said Representative Frank Lucas (R-OK), urging pragmatism in the legislative process.
In an effort to bridge the divide, Speaker Johnson held multiple meetings with conservative members near the House chamber. Senate Majority Leader John Thune also sought to reassure skeptical House members, pledging to pursue additional spending reductions in upcoming negotiations.
However, proposals for steeper cuts risk alienating moderate senators and could complicate the legislative path forward. House Democratic Leader Hakeem Jeffries condemned the Republican budget as a blueprint for “some of the most extreme cuts to health care, nutritional assistance and the things that matter to everyday Americans.”
Moderate Republicans, including Senator Susan Collins of Maine, expressed doubts about achieving proposed healthcare savings, particularly in Medicaid. “I’m sure there’s some fraud… but I don’t see how you get to $880 billion,” she said, referencing the cuts proposed for the health program.
Debt Ceiling Looms Over Budget Debate
In addition to advancing tax policy, the budget plan is expected to be used as a vehicle to raise the federal debt ceiling. Lawmakers must act by summer to avoid a potential default on the nation’s $36.6 trillion debt.
Democrats criticized the strategy, arguing it prioritizes tax benefits for the wealthy at the expense of fiscal responsibility. “What they’re doing in reality is giving billionaires the national credit card and telling them to go hog wild,” said Representative Angie Craig (D-MN) during Thursday’s floor debate.
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