President Trump endorsed the House Republicans’ comprehensive policy and tax cut plan, rejecting Senate Republicans’ approach of breaking it into smaller parts. He emphasized the need for a “big beautiful bill” to fulfill his America First agenda, despite ongoing Capitol Hill debates. Trump’s statements conflicted regarding Medicaid cuts, advocating no reductions in social safety net programs yet backing the House’s proposal that includes significant Medicaid cuts. As Republicans navigate extending Trump’s $4 trillion tax cuts without increasing debt, they face challenges, with Democrats highlighting Medicaid’s potential cuts as unpopular among the public. The budget process is increasingly complicated.
On Wednesday, President Trump backed House Republicans’ plan to proceed with a comprehensive policy and tax cut proposal, rejecting the Senate Republicans’ strategy of fragmenting his agenda into smaller, manageable pieces for the chamber.
Via his platform Truth Social, Mr. Trump expressed his support for the House’s strategy and described it as “one big beautiful bill” that “implements my FULL America First Agenda, EVERYTHING, not just parts of it!”
He emphasized the necessity for both Chambers to approve the House Budget.
The president’s remarks did little to resolve the ongoing debate on Capitol Hill regarding the optimal way to advance his expansive legislative agenda, which encompasses enhanced border control measures and various tax cuts.
Senate Republicans indicated they would persist with their strategy of advancing Mr. Trump’s agenda incrementally—starting with a border-enforcement bill—casting doubt on whether House Republicans, amid their internal discord, could unify to create a cohesive outcome.
“He’s made it clear for a long time that he would prefer one big, beautiful bill, and we’re fine with that too,” remarked Senator John Thune of South Dakota, the majority leader, following Mr. Trump’s statement. “If the House can produce one big, beautiful bill, we’re prepared to work with them to get that across the finish line. But we believe that the president also appreciates flexibility.”
Mr. Trump’s announcement occurred just hours after he provided contradictory guidance to congressional Republicans regarding potential cuts to social safety net programs.
During an appearance on Fox News Tuesday night, Mr. Trump insisted there should be no reductions to Medicaid, the health care program for low-income Americans, or other entitlement initiatives.
“Social Security won’t be touched, aside from addressing fraud or issues we might uncover,” he explained. “It’s going to be strengthened, but won’t be altered. Medicare, Medicaid, none of that is going to be affected.”
However, by the following morning, Mr. Trump was supporting the House Republicans’ budget proposal, which includes significant cuts to Medicaid.
This contradiction highlighted one clear reality: the budget process is set to become increasingly complicated.
“You have a lot of individuals who’ve long advocated for fiscal responsibility and expenditure cuts, yet can’t identify anything they’re truly comfortable pursuing,” said Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, emphasizing the need for Congress to address the country’s $36 trillion debt.
“Cutting spending and raising taxes is unpopular,” she noted. “Just like exercising and eating healthily. We’re making some shortsighted decisions regarding the continued rise of the debt.”
Republicans are attempting a delicate balancing act as they strive to maintain Mr. Trump’s proposed $4 trillion in tax cuts, all while avoiding an increase in national debt, which has reached unprecedented levels. To bridge the gap, they will need to implement substantial cuts elsewhere in the budget.
Currently, House Republicans are considering numerous modifications to Medicaid, including restricting federal payments to states, which could potentially save the federal government hundreds of millions.
Democrats have aimed to draw public focus to the reality that the proposal paves the way for cuts to Medicaid, a program that polling indicates enjoys widespread support.
“The math doesn’t add up, and the sole way he can make this happen is by targeting Medicaid,” stated Senator Peter Welch, Democrat of Vermont, on Wednesday. “It’s a truly alarming agenda.”
The House budget resolution outlines general spending targets by committee but does not specify actual cuts. It mandates the Energy and Commerce Committee, which oversees Medicaid, to identify at least $880 billion in reductions. A proposed wishlist from the House Budget Committee included various options for reshaping Medicaid, which serves 72 million low-income and disabled individuals. Many of these proposals focus on imposing higher costs on state governments.
Mr. Trump has often shifted his stance. He has held contradictory views on numerous topics, including abortion, the Affordable Care Act, state and local tax deductions, and key elements of the Foreign Intelligence Surveillance Act.
Yet the question of whether to amend Medicaid to allocate funds for tax cuts remains particularly contentious.
Speaker Mike Johnson has supported implementing work requirements for Medicaid and reducing inefficiencies, asserting that such a stance aligns with the president’s perspective. However, these measures are likely to yield only a minor portion of the funding needed.
“Medicaid has never been on the chopping block,” Mr. Johnson, a Republican from Louisiana, remarked during a recent news conference, adding: “By eliminating fraud, waste, and abuse in Medicaid, you can free up substantial resources for essential priorities in our country.”
He concluded: “Incorporating work requirements into Medicaid stands to reason. It’s common sense.”