
News Link • Economy - Economics USA
House Republicans Weigh Sweeping $5.7 Trillion In Spending Cuts To Fund Trump's Domestic Agenda
• https://www.zerohedge.com, by Tyler DurdenThe plan, designed to bankroll President-elect Donald Trump's ambitious priorities - including tax cuts and increased border security - details reductions to major federal programs, including Medicare, Medicaid, and Biden-era climate initiatives.
The early list, obtained by POLITICO, reflects the GOP's long-standing goal of reducing government spending, though the magnitude of the suggested cuts underscores the high-stakes nature of the effort. The menu includes slashing welfare programs, revising Affordable Care Act subsidies, and rolling back green energy tax credits. While the list serves as a set of options rather than a formal proposal, it has already sparked intense internal debate among Republicans.
The people, granted anonymity to discuss closed-door negotiations, said that the list originated from the House Budget Committee, chaired by Rep. Jodey Arrington (R-Texas). Republicans involved in the reconciliation plans have been generally targeting the listed programs for several months, but internal GOP fights over trillions of dollars in potential cuts are just beginning.
The overall savings add up to as much as $5.7 trillion over 10 years, though the list is highly ambitious and unlikely to all become law given narrow margins for Republicans in the House and Senate. -Politico
The "document is not intended to serve as a proposal, but instead as a menu of potential spending reductions for members to consider," one GOP source told the outlet.
Yet even within the Republican caucus, there is skepticism about the feasibility of achieving such drastic savings. "They all feel pretty controversial," one senior GOP lawmaker conceded when asked if there were any particularly controversial spending offsets dividing Republicans.
House Speaker Mike Johnson is reportedly working to balance the demands of Trump's domestic policy agenda, estimated to cost $10 trillion, with the fiscal constraints imposed by his own pledge to slash $2.5 trillion in government spending through the budget reconciliation process as part of last year's govt. funding negotiations.
Medicaid And ACA In The Crosshairs
One of the most contentious components of the plan targets Medicaid, with proposed caps on federal spending tied to state population levels instead of maintaining the program as an open-ended entitlement. Additionally, the list suggests imposing work requirements for Medicaid recipients and aligning payments for able-bodied adults with those for low-income children and individuals with disabilities - a move projected to save $690 billion.