The House Budget Committee was poised to advance a Republican budget resolution Thursday after GOP leaders struck a deal with Freedom Caucus hardliners to amend the plan and allow of steeper spending cuts in exchange for bigger tax cuts. The deal reportedly would require committees to reach $2 trillion in savings over 10 years or else dial back on the $4.5 trillion in room for deficit-increasing tax cuts over 10 years. The agreement also allows more than $4.5 trillion in tax cuts if committees are able to deliver more than $2 trillion in savings.
House Freedom Caucus Chair Andy Harris told reporters that his group would vote for the bill with the agreed-upon amendment. He said his caucus had pushed to offset the entire cost of the package. “We want to make it deficit neutral. We think that with our amendment it ensures deficit neutrality, and that’s all we care about,” Harris said, per Roll Call.
Budget experts warned this week that the House plan as originally outlined relied on gimmicks and would increase deficits.
The Senate Budget Committee led by Sen. Lindsey Graham advanced its own budget resolution on Wednesday. That plan leaves aside tax changes for a second reconciliation bill. “Senate GOP leaders are leaning toward moving Lindsey Graham’s budget resolution to the floor next week, setting up a showdown with both Democrats and House Republicans,” Punchbowl News reports.
The bottom line: The House plan looks set to take a significant step forward, but the narrow GOP majority in the chamber still doesn’t guarantee that the blueprint will sail through in a floor vote. Republican Rep. Victoria Spartz of Indiana has reportedly already said she will oppose it, and some more moderate members may have concerns about the levels of cuts to Medicaid, food stamps or other programs.