House Republicans reach deal on Trump’s $3tn budget bill, Johnson says

In a move that could reshape the future of American fiscal policy, House Republicans have rallied behind a $3 trillion budget proposal closely aligned with the vision of former President Donald Trump. After weeks of negotiations and internal division, House Speaker Mike Johnson announced on Tuesday that a deal had been reached, clearing a path for a floor vote and setting the stage for a potentially seismic political showdown in the Senate.

The proposed budget resolution—massive in scope and impact—serves as a roadmap for what a second Trump presidency could look like. At its core, it calls for sweeping tax cuts, increased military spending, deep cuts to federal entitlement programs, and ambitious immigration enforcement spending.

“This is not just a budget,” Johnson declared during a press briefing. “It’s a vision for restoring prosperity and security to the American people. We are united behind this plan.”

But behind that unity was weeks of wrangling. A key sticking point had been the State and Local Tax (SALT) deduction cap—a contentious issue among Republicans from high-tax states like New York, New Jersey, and California. The 2017 Trump tax cuts capped this deduction at $10,000, a move that hit middle-class homeowners in these states particularly hard. The new deal raises that cap to $40,000 for individuals earning less than $400,000 a year, offering relief to suburban constituents who had grown increasingly frustrated.

That concession was essential in bringing holdout Republicans on board. Representative Mike Lawler of New York, who had previously resisted backing the bill, said the change made a meaningful difference. “We had to make sure this budget wasn’t punishing our constituents for living in states that happen to tax more,” Lawler explained.

The broader bill, however, remains controversial. It extends and expands upon the Trump-era tax cuts, increases standard deductions, boosts the child tax credit, and introduces new exemptions for overtime pay and tipped wages. Supporters argue that these provisions will stimulate economic growth and ease the financial burden on working families.

“America needs to get back to work,” said House Budget Committee Chair Jodey Arrington of Texas. “We’re creating a pro-growth, pro-family, pro-worker framework.”

But the plan also calls for steep reductions in domestic spending. Medicaid, food stamps, and housing assistance programs face significant cuts. The Environmental Protection Agency would see reduced funding, as would many education and health-related programs. Meanwhile, the budget proposes billions in new spending for border enforcement—including construction of new physical barriers—and a missile defense initiative called the “Golden Dome.”

Democrats have slammed the proposal as a “Robin Hood in reverse,” saying it gives the wealthy and corporations massive tax breaks while slashing lifelines for vulnerable Americans.

“This budget is a toxic stew of misplaced priorities,” said House Minority Leader Hakeem Jeffries. “It showers the ultra-rich with giveaways while gutting healthcare and food assistance for working families.”

Criticism has also come from within the Republican ranks. Kentucky Representative Thomas Massie voted against the bill, saying it failed to seriously address the national debt. According to estimates from the Congressional Budget Office, the budget would increase the deficit by $3.3 trillion over the next decade, pushing public debt to an unprecedented 125% of GDP.

“We’re pretending to be fiscal conservatives while putting the country further into debt,” Massie warned. “That’s not leadership—it’s hypocrisy.”

Nevertheless, the bill narrowly passed the House in a 217-215 vote, without a single Democrat supporting it. That slim margin reflects both the tight partisan divide and the lingering unease among some Republicans.

The road ahead is far from smooth. In the Senate, the proposal is expected to be broken into separate bills—one focusing on tax cuts, another on border security. That segmentation is seen as a strategy to build support among Senate Republicans and possibly attract a few centrist Democrats.

Still, many political observers see the budget as more than just fiscal policy—it’s a campaign document in all but name. With the 2024 election cycle heating up, the GOP is using the budget to signal its priorities under a potential Trump return to the White House.

“It’s a messaging bill as much as a governing blueprint,” said political analyst Maria Caruso. “It tells voters, ‘This is what you’ll get if you give Republicans the keys to Washington again.’”

For now, Speaker Johnson is celebrating the victory, even as challenges loom. “This is a major milestone,” he said. “We’ve shown we can come together and chart a path forward.”

But whether that path leads to legislative success—or deeper political divides—remains to be seen.