Senate GOP passes budget plan, setting up a critical next phase for Trump agenda : NPR

After a surge in overnight votes, the Republican-led Senate approved a revised framework for a drastic budget plan that is important for President Trump’s domestic agenda.

The early morning of Saturday, between 51 and 48 votes bring Congressional Republicans a step closer to finalizing a multi-trillion dollar plan to address defense, energy, immigration and tax policy.

“This resolution is the first step in the final bill to make tax exemptions permanent, implemented in 2017, providing transformative investments in border, national and energy security,” Senate majority leader John Tune (Rs.D.) said ahead of the vote.

Republicans in the House and Senate must pass the same version of budget resolution to access the settlement. This is a hallmark of the budget process that allows other policies by Senate Democrats to pass and avoid filibusters.

But they still face a difficult battle as there are already signs of trouble in the home over the details of the Senate framework.

Let’s take a quick look at what the Senate plan will achieve and what lawmakers will expect in the coming days as they move into the next phase.

Trump’s 2017 tax cut extension

All Senate plans allow tax cuts of more than $5 trillion. The blueprint extends the tax cuts and employment law passed under Trump’s first term in 2017. The program is set to expire by the end of the year. This means tax increases for millions of Americans.

The bill also provides for an additional $1.5 trillion in new tax cuts.

Republicans hope the new cuts are good for some of Trump’s promises from the campaign so there’s no tax on the hints.

In comparison, the House has passed a budget framework that set aside $4.5 trillion for tax cuts.

Paying tax cuts

One of the biggest differences between Senate and House plans is how tax cuts are paid. The bill directs both chambers to reduce the deficit by reducing spending. The Senate’s spending cuts are set at just about $4 billion, but the House intends to cut at least $1.5 trillion. That includes an order to the House Energy and Commerce Committee, which cuts $880 billion in spending.

Senate Republicans also want to use procedural gimmicks that work effectively to effectively work the $3.8 trillion needed to extend Trump’s tax cuts. This is a dangerous approach that has already sparked tensions between Senate Republicans and their House counterparts, and could prove one of the biggest obstacles to final passage.

This plan lifts debt restrictions

To avoid catastrophic financial defaults this summer, the Senate plan will raise US debt limits by $5 trillion. Without increasing, the government will not be able to issue new debts. This means that there is no money to pay the bill, including the profits owed to the bondholders.

Economists warn that if the US fails to debt, it will be disastrous not only for the US but also for the global economy. Congressional Budget Office, nonpartisan scorekeeper for Congress; I’ll predict If lawmakers do not act, the US can break debt restrictions by August or September.

Money for the borders and the Pentagon

The Senate plan also calls for an additional $521 billion spending on GOP policy priorities. There will be up to $175 billion in defence spending, plus $150 billion, which is expected to be used for border enforcement.

There are still many wildcards that are organized

Republicans in both rooms are lined up in the hopes of planning on Trump’s desk in the coming weeks, but the thin edges of their razors threaten the ambitious agenda with many moving parts.

The home already has the fiscal Hawks and I still want to see bigger and more specific plans to cut my spending. It was house speaker Mike Johnson and R-La. These are high orders to win the holdouts.

The two rooms could be heading towards a high-stakes conflict over the depth of deficit reductions, about the costs of extending Trump’s tax cuts and whether it has to be cut to Medicaid for it to work. Ultimately, it tests the desire of Congressional Republicans to be exposed to the political third railway at a moment of crucial importance to the party.