House Budget Committee Finalizes Resolution to Advance Trump’s Policy Agenda

WASHINGTON—On February 13, the U.S. House Budget Committee voted to move forward with a resolution that would allow Congress to start drafting legislation to implement conservative policy proposals that President Donald Trump pledged during the 2024 campaign.

This procedure, known as budget reconciliation, is the sole method that Congress can utilize to pass legislation without needing bipartite support, as such bills aren’t affected by the Senate’s requirement of 60 votes to end debate.

Reconciliation bills must pertain solely to taxation, spending, and public borrowing. To initiate this process, both chambers of Congress are required to pass an identical budget resolution directing standing committees to recommend adjustments to spending levels.

With a slim three-seat majority in the Senate and a one-seat majority in the House, Republicans have the necessary, though limited, support to pass such legislation. During President Biden’s administration, reconciliation was utilized to pass two pivotal pieces of legislation: the American Rescue Plan Act of 2021 and the Inflation Reduction Act of 2022.

Through the reconciliation process, the party plans to push through various initiatives, including funding for a border wall, operations for deporting illegal immigrants, making several tax deductions from the Tax Cuts and Jobs Act (TCJA) of 2017 permanent, and extending the federal debt ceiling, which was reached on December 31, 2024.

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Changes to minor policies that Trump has requested—like adjustments to asylum and immigration regulations—are not allowable in the budget reconciliation, and the proposed bill cannot lead to increased deficits after a decade.

The proposed House budget resolution aims to enhance spending by $100 billion for armed services, $90 billion for homeland security, and $110 billion for judicial matters, while offering $4.5 trillion in tax reductions, primarily associated with TCJA provisions. In contrast, it seeks to cut spending in sectors such as agriculture, education, energy, transportation, and federal bureaucracy. The plan also proposes an increase in the federal government’s borrowing limit by $4 trillion.

“We aim to fulfill the people’s mandate by advancing the fiscal year 2025 budget resolution to restore the fiscal stability of our nation by curbing excessive spending and revitalizing economic growth,” stated House Budget Committee Chairman Jodey Arrington (R-Texas) at the beginning of the hearing. “We will provide tax relief for working families and small businesses… [and] essential resources for our border patrol agents and our military to enhance national defense, secure our borders, and support our Commander in Chief.”

Republicans are working to ensure the resolution is deficit-neutral, although the resolution itself does not directly lead to a balanced budget. Instead, the expectation is for economic growth to rise, subsequently increasing tax revenue to fund the bill.

Throughout the hearing, various Democratic members proposed amendments that would either prioritize progressive agendas or counter conservative goals, all of which were dismissed by voice vote.

“This plan represents a betrayal of the middle class by Republicans. It fails to assist hardworking Americans,” remarked Rep. Brendan Boyle (D-Pa.), the committee’s ranking member, during his opening statement, reflecting sentiments shared by House Minority Leader Hakeem Jeffries and other Democrats.

“This budget takes healthcare away from millions while distributing $4.5 trillion in tax breaks, largely benefiting billionaires and affluent corporations. It proposes cuts exceeding $230 billion to food assistance programs while grocery prices have reached record levels… and suggests at least $880 billion in reductions to Medicaid and the Affordable Care Act.”

The hearing extended nearly 11 hours as Democrats put forth multiple amendments, all opposed by Republicans.

By around 9 p.m., the committee concluded after finalizing the markup process, dismissing all proposed amendments, and voting to move the resolution to the floor. The resolution still requires a full House vote and Senate approval before the bill drafting can commence.

Even if the resolution passes in the House, there’s no certainty that the Senate will endorse it.

Unlike House Republicans—who aim for a single reconciliation bill addressing all priorities—the Senate prefers to pass two separate bills for fiscal year 2025 to allow for more careful examination of each component.

For the process to succeed, Republicans will need to resolve these existing differences.