House Republicans unveil blueprint to extend $4.5 trillion in tax cuts and lift the debt ceiling

House Republicans released a budget plan Wednesday that sets the stage for advancing many of President Donald Trump's top domestic priorities, providing for up to $4.5 trillion in tax cuts and a $4 trillion increase in the debt limit so that the U.S. can continue financing its bills.

By KEVIN FREKING and LISA MASCARO

The Associated Press
February 12, 2025 at 6:26PM

WASHINGTON — House Republicans released a budget plan Wednesday that sets the stage for advancing many of President Donald Trump's top domestic priorities, providing for up to $4.5 trillion in tax cuts and a $4 trillion increase in the debt limit so that the U.S. can continue financing its bills.

The budget plan also directs a variety of House committees to cut spending by at least $1.5 trillion while stating that the goal is to reduce spending by $2 trillion over 10 years.

The blueprint represents a first step in a lengthy legislative process that would allow Republicans to pass some of their top priorities in a simple majority vote. The House Budget Committee is expected to hold votes on the plan on Thursday. House Speaker Mike Johnson predicted it would easily advance out of committee.

''Then, we'll work with everybody over the week to make sure they are on board,'' Johnson said.

Johnson has set an ambitious schedule for moving the resolution and subsequent legislation, but tensions remain within the Republican conference about the scope of the proposed tax and spending cuts. Some want more in tax cuts than what is in the blueprint while others want steeper spending cuts.

''There'll be a lot of negotiations back and forth," Johnson said. "There's a lot of moving parts to this, but our objective is to fulfill all the president's campaign promises and the full agenda, so we have time to do that."

Budget resolutions are often considered statements of priorities. But the 45-page plan is more than just a policy blueprint as it provides specific directions to House committees to rearrange the federal money flow. GOP leaders are eyeing cuts to social services, and particularly Medicaid, as they seek massive savings.

The Energy and Commerce Committee, which handles health care spending, is asked to cut $880 billion over the decade, while the Education and Workforce committee is asked to reduce spending by $330 billion. The Agriculture committee is asked to save $230 billion, while the Transportation and Infrastructure Committee is asked to find at least $10 billion in cuts through 2034.

Even as some programs would be cut, money would be shifted to other Trump priorities, including a $100 billion boost in defense spending over the next decade through the Armed Services Committee and an additional $90 billion for the Homeland Security Department, which is carrying out Trump's massive immigration deportation.

House Democrats were harshly critical of the budget plan.

Rep. Brendan Boyle, the top Democratic on the House Budget Committee, said that the tax cuts won't pay for themselves through increased economic growth.

''Instead, their plan blows up the deficit and sticks the middle class with the bill, whether through higher prices, deep cuts to essential programs, or both," said the Philadelphia lawmaker.

And Rep. Paul Tonko, D-N.Y., said it could eventually lead to many who rely on Medicaid for their health insurance coverage to see higher costs or lose coverage entirely.

''To take away this lifesaving coverage is cruel in its own right. But to do it all to further line the pockets of their donors, of the wealthiest Republicans and corporations, is despicable,'' Tonko said.

Republicans say they don't want to take benefits away from those who rely on Medicaid, but they are considering requiring more able-bodied Americans to work as a condition of their participation.

''If you add work requirements to Medicaid, it makes sense to people. It's common sense,'' Johnson said. ''Little things like that make a big difference not only in the budgeting process but in the morale of the people. You know, work is good for you. You find dignity in work. And the people who are not doing that, we're going to try to get their attention.''

As House Republicans press ahead, Senate Republicans are pursuing a narrower effort focused on boosting border security and defense spending.

Republicans have been debating since last year whether to enact the bulk of Trump's agenda in one or two pieces of legislation. The Senate is moving on a two-bill track, while the House is moving on a one-bill track. It's unclear which side will win out in the end.

The Senate Budget Committee began work on the narrower budget plan on Wednesday. It would allow $175 billion to be spent on border security, $150 billion for defense and $20 billion for the Coast Guard. Their budget would not include an extension of tax cuts, leaving that to be dealt with in a second bill later this year.

Sen. Lindsey Graham, the committee's chair, said in selling the blueprint to other lawmakers that a majority of American supports deporting immigrants who are in the U.S. illegally, but that Immigration and Customs Enforcement was running out of funding. He said more agents and detention space will be needed to allow for the deportation effort.

''We need to move on this issue,'' said the South Carolina Republican.

Sen. Jeff Merkley, the top Democrat on the committee, said the GOP effort would in the end drive the nation deeper into debt through massive tax cuts that he said primarily benefit the wealthy. He said it's a trend that has occurred repeatedly with Republicans in the White House.

''We are seeing a replay of the charade one more time,'' the Oregon senator said. ''The trickle down never trickles down.''

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KEVIN FREKING and LISA MASCARO

The Associated Press

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