Overview

• The House narrowly approved a budget resolution extending the 2017 Trump tax cuts and raising the debt ceiling by $5 trillion, setting the stage for reconciliation to bypass the Senate filibuster.
• Republican leaders aim to achieve at least $1.5 trillion in spending cuts over the next decade, with Medicaid and other social programs likely to face reductions.
• Senate Republicans are divided on the extent of spending cuts, with moderates opposing reductions to Medicaid and fiscal hawks demanding deeper cuts.
• The resolution paves the way for additional Trump policy priorities, including tax relief, increased defense spending, and enhanced border security measures.
• Senate Majority Leader John Thune and House Speaker Mike Johnson played key roles in uniting GOP factions to secure the resolution’s passage, but significant negotiations lie ahead.