Jessica Yellin Instagram – A surprise victory for Speaker Johnson and President Trump, tonight. A divided GOP house conference looked past their differences and united to pass a massive budget bill that would be Trump’s first major piece of legislation this term.
Called a “big beautiful bill” by President Trump, the measure would preserve the 2017 tax cuts, lower the corporate tax rate, end taxes on tips and social security benefits – totalling $4.5 trillion in tax cuts over a decade.
To pay for some of this the bill also requires $2 trillion in spending cuts – which is expected to drive steep cuts (almost $900 billion) in popular and vital Medicaid and the Children’s Health Insurance Program (CHIPS). Many GOP members in swing districts objected to the bill, fearful that a vote to cut Medicaid could cost them their seat.
The measure also allows for more drilling for energy reserves, more defense spending, and more spending on immigration enforcement. It would raise the debt limit by $4 trillion avoiding a debt limit showdown later in the year.
None of this is a done deal. First, this bill is merely a framework – a list of “wants.” The Senate passed a different, more narrow bill and the two will have to be reconciled into one bill. This means committees will now fill in details. And the combined bill will be brought to another vote. If Republicans lack the votes to pass that combined bill, the government could shut down in March. In this case they could require Democratic support to pass a measure.
For now the GOP is united. Johnson and Trump overcame objections from GOP fiscal hawks who object to the bill’s impact on the deficit. And from moderates who object to cuts in health care programs for Americans.
The vote was 217 to 215, with one Republican voting “no” along with all Democrats.
This is one major step forward for the Trump agenda, but it faces many hurdles before it becomes law.
What strikes you about this legislation? | Posted on 26/Feb/2025 08:03:19
