In Washington, Republican senators introduced a budget proposal on Wednesday that plays a vital role in President Donald Trump’s domestic priorities, which include tax cuts, reduced government spending, and bolstered border security. However, some of the challenging decisions, such as sourcing funds for the multitrillion-dollar proposal, have been postponed.
At a meeting at the White House, Trump hosted Senate Republicans as they moved forward to approve the budget framework by the end of the week. With Democrats largely against it, Trump ensured GOP senators of his support for the plan, which proposes substantial reductions to government programs and services, as well as a $5 trillion increase to the nation’s debt limit.
“The Senate plan has my complete and total support,” Trump declared during a White House presentation of his new tariffs later in the day. He also cautioned the senators, “I won’t like them so much if they don’t get this bill done.”
The Senate’s budget framework would complement the House Republicans’ $4.5 trillion tax cuts, which include reducing health care and other program expenditures by up to $2 trillion. Approval of the Senate blueprint could advance Trump’s supporters in Congress closer to reconciling their plans and setting the stage for a final agreement in the following weeks.
Senate Majority Leader John Thune, R-S.D., emphasized, “It’s now time for the Senate to move forward.”
Although significant discrepancies remain, political pressure mounts for Republicans to deliver what’s anticipated to be Trump’s flagship domestic policy: extending the tax cuts originally instituted in 2017 during his first term. With these cuts set to expire at year’s end, Trump is pushing to broaden them to include no taxes on tipped wages, overtime pay, and other forms of earnings, as pledged in the 2024 campaign.
Democrats intend to oppose the GOP tax strategies, describing them as oiling the pockets of the affluent while the federal government’s efficiency department, helmed by Elon Musk, slashes through existing structures. They argue Republicans plan to slash essential services that millions depend on across the nation.
Senator Ron Wyden, the ranking Democrat on the Senate Finance Committee, dismissed the Republicans’ claims about their tax plans’ affordability, estimating the real cost at “upward of $5 trillion.” Wyden added that the financial impact of the Republicans’ plans would be dire and harmful to lives across America.
The Senate proposal aims to maintain around $4 trillion of current tax cuts, with an additional $1.5 trillion in new cuts. It allocates over $500 billion to defense, homeland security, judiciary, and the Coast Guard, although this could see reductions to approximately $345 billion as indicated by statements from Graham.
The specific dimension of cuts is a subject of ongoing negotiations. The Senate has established a baseline of $1 billion in cuts for health care, food stamps, and other committees. This amount could be adjusted to align more closely with the House’s projected $2 trillion in cuts, if needed.
During the morning White House meeting, GOP senators sought Trump’s support in pursuing popular tax breaks, despite cuts being politically sensitive.
Senator John Kennedy, R-La., shared, “We asked him for his commitment to defend our efforts to reduce spending… and to do that publicly and vociferously.” Senator Lindsey Graham, R-S.C., affirmed Trump’s alignment with the Senate’s spending reduction goals.
A key disagreement remains between the House and Senate GOP plans on whether the current tax cuts, potentially costing the federal government $4.5 trillion over ten years, should be funded through spending decreases elsewhere. Adding Trump’s new tax breaks would significantly increase the financial burden.
House Republicans demand considerable reductions in services to prevent further strain on the country’s $36 trillion debt.
However, GOP senators view the current tax cuts as existing policy, thus not representing new expenses adding to future deficits. The legislative draft grants the Budget chair the authority to proceed with “realistic assumptions” based on this baseline, suggesting only Trump’s additional proposed tax reductions would incur new costs.
Prominent Democrats, including Senate Minority Leader Chuck Schumer, call the Senate GOP’s framework deceptive, with Schumer calling it a “gimmick” or “lie.”
“It is an obscene fraud, and the American people won’t stand for it,” commented Schumer alongside Wyden and Senator Jeff Merkley in a letter addressed to Republican leadership.
Generally, the proposed baseline policy must meet the Senate’s nonpartisan parliamentarian’s scrutiny to ensure compliance with budgetary regulations. Closed discussions with parties on both sides are ongoing regarding this matter, yet Republicans are determined to proceed for now.
Democratic Senator Cory Booker expressed strong opposition to the GOP plan during a historic overnight speech, criticizing their focus on benefits for the most prosperous.
Treasury Secretary Scott Bessent has urged Senate Republicans to expedite the process to avoid complications linked to the federal debt ceiling.
Trump is pressing Congress to resolve the debt ceiling well ahead of potential leverage by Democrats for their own agenda. The House proposes a $4 trillion increase, while the Senate suggests $5 trillion to preempt any debt debates before 2026 midterms.
The Senate aims to pass the framework promptly through a potentially prolonged session, with further refinements expected as House and Senate Republicans shape the comprehensive package in the face of Democratic resistance over the coming weeks or months.