House Republicans are working to meet President Donald Trump’s demand for a major budget package by Friday’s self-imposed deadline. The plan is expected to include approximately $3 trillion in tax breaks, significant cuts to government spending, and a possible extension of the nation’s debt limit.
Trump met with lawmakers at the White House on Thursday to finalize the details of the multitrillion-dollar plan.
The meeting lasted nearly five hours and led to House Speaker Mike Johnson missing a planned one-on-one at the U.S. Capitol with Israeli Prime Minister Benjamin Netanyahu, who met with leaders of the Democratic Party and other lawmakers instead.
Though lawmakers emerged from the meeting without having reached a deal on how to extend Trump’s sweeping tax cuts, Johnson said he believed they were close to an agreement.
Johnson had GOP lawmakers working on the package late into the night before lawmakers leave town on Friday.
“We worked out the framework for what we believe will be the path forward. We’re going to meet again tonight to finish up some final details,” Johnson told reporters at the Capitol late Thursday. “I think we'll be able to make some announcement probably by tomorrow.”
Johnson also praised Trump for “leaning in and doing what he does best, and that is put a steady hand at the wheel and get everybody working.”
The emerging budget package from the House GOP is expected to make tax cuts set to expire at the end of this year permanent, reduce spending on federal programs, and ensure Trump has sufficient funding to launch his deportation operation and complete the U.S.–Mexico border wall.
The package may also raise the nation’s debt ceiling to allow more borrowing and prevent a federal default.
This includes ending federal taxation on tips—a public campaign promise the president made—and eliminating the taxes on overtime pay and seniors’ social security.
Leavitt said Trump would also pursue adjustments to the state and local (SALT) tax deduction cap, eliminate special tax breaks for billionaire sports team owners, close the carried interest tax loophole, and introduce tax cuts for made-in-America products.
Renewing tax cuts he enacted in 2017 was also on the agenda, Leavitt said.
“The president is committed to working with Congress to get this done,” Leavitt stated.
Republicans, led by Senate Majority Leader John Thune (R-S.D.), have proposed enacting Trump’s proposals via a two-step approach, starting with a smaller bill that would include money for Trump’s border and defense policies, among other priorities.
After that, they would pursue a more robust package of tax break extensions before a year-end deadline.
GOP senators are set to meet Trump at his private Mar-a-Lago club on Friday.
Johnson has insisted that Republicans will remain unified and are on track to achieve his goal of passing Trump’s budget package in the House by April.
