House Republicans narrowly approved a compromise resolution Thursday, clearing a major hurdle toward implementing President Donald Trump’s economic agenda through the reconciliation process in a massive new federal budget bill.
The measure passed by a razor-thin margin of 216-214, with two Republicans — Reps. Thomas Massie, R-K.Y., and Victoria Spartz, R-Ind., — joining all Democrats in opposition. The vote came after House Speaker Mike Johnson was forced to cancel a planned Wednesday vote due to insufficient support.
“I’m happy to tell you that this morning, I believe we have the votes to finally adopt the budget resolution so we can move forward on President Trump’s very important agenda for the American people,” Johnson said before the vote. “Our first big, beautiful reconciliation package here, involves a number of commitments. And one of those is that we are committed to finding at least $1.5 trillion in savings for the American people, while also preserving our essential programs.”
The budget resolution unlocks the reconciliation process, allowing Republicans to pass major legislation with a simple majority in the Senate rather than the 60 votes typically needed to overcome a Democratic filibuster.
Trump celebrated the win on Truth Social: “Congratulations to the House on the passage of a Bill that sets the stage for one of the Greatest and Most Important Signings in the History of our Country. Among many other things, it will be the Largest Tax and Regulation Cuts ever even contemplated. MAKE AMERICA GREAT AGAIN!”
Significant differences remain between the House and Senate versions that must be reconciled before a final bill reaches Trump’s desk. The House version calls for at least $1.5 trillion in mandatory spending cuts, while the Senate only budgeted approximately $4 billion in cuts.
The U.S. deficit has continued to grow ever larger in recent months, despite Republicans holding power in every major branch of government.
“It was a good day in the House; I told you not to doubt us,” Johnson told reporters after the vote. “We get the job done, and we’re really grateful to have had the big victory on the floor right now. There’s a lot of work ahead of us and we’re really excited about that.”
Other key differences between the House and Senate versions include:
- The Senate version allows for $5.3 trillion in tax cuts, while the House version budgets $4.5 trillion
- The Senate provides $350 billion for border security compared to the House’s $200 billion
- The Senate increases defense spending by $150 billion versus the House’s $100 billion
- The Senate raises the debt ceiling by $5 trillion, while the House version allows for a $4 trillion increase
Senate Majority Leader John Thune expressed support for the spending cuts demanded by House conservatives. “We are aligned with the House in terms of what their budget resolution outlined in terms of savings. The speaker has talked about $1.5 trillion. We have a lot of United States senators who believe in that as a minimum,” Thune said.
Rep. Andy Harris (R-Md.), chairman of the conservative House Freedom Caucus who had previously been on the fence, ultimately supported the bill but with conditions.
“I voted to move forward in the reconciliation process, which must result in keeping taxes low for American families, fully funding our border security, and enacting historic spending reductions in return for raising the limit on our nation’s credit card,” Harris said. He added that spending cuts must approach $2 trillion in the final bill to win his support.
The budget aims to make the 2017 Tax Cuts and Jobs Act permanent and create space for Trump’s campaign pledges of no tax on tips, Social Security, or overtime pay. It also addresses the state and local tax (SALT) deduction cap, which Rep. Jeff Van Drew (R-NJ) said is being discussed at around $30,000 per individual filer.
With Congress breaking for a two-week Easter and Passover recess, Republican leaders hope to get a final bill to Trump’s desk by Memorial Day.