Capitol Correspondence - 02.18.25

House Budget Committee Advances GOP Budget Resolution as Reconciliation Effort Gains Momentum

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The House Budget Committee has approved the House GOP’s budget resolution for fiscal year (FY) 2025, advancing Speaker Mike Johnson’s (R-LA) one-bill reconciliation strategy. The resolution aligns with House Republican leadership’s approach, combining tax reform with policies on border security, immigration, national defense, and energy. Its passage comes as the Senate prepares to take up its own two-bill reconciliation plan, which prioritizes border and energy policy first, followed by a separate bill specific to tax reform later this year.

A key component of the House resolution is its directive to the Energy and Commerce Committee to reduce spending by at least $880 billion, a stark contrast to the Senate’s more modest $1 billion reduction target. This substantial cut raises concerns that Medicaid could bear the brunt of the House plan’s cost savings.

During committee deliberations, Republicans framed the resolution as a pathway to advancing President Donald Trump’s campaign priorities, including border security, military expansion, and reducing government waste. In contrast, Democrats argue that the proposal, particularly its cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), would harm middle-class and low-income Americans. Democratic members introduced two dozen amendments, including nine health care-related proposals, all of which were rejected along party lines.

The resolution, which aims to reduce deficits by $14 trillion and generate a budget surplus by FY 2034 while projecting 3% annual economic growth, passed the committee with a 21-16 party-line vote. As both chambers move toward unlocking the reconciliation process, House and Senate leaders must reconcile their competing budget approaches to push forward legislative priorities in the months ahead.