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US: Speaker Johnson Eyes USD1.5 Trillion In Spending Cuts - Punchbowl

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Jake Sherman at Punchbowl reports that House Speaker Mike Johnson’s (R-LA) budget resolution could target USD$1.5 trillion in spending cuts.

  • Sherman notes on Xthat the yet-to-be-finalised resolution could cover USD$4.5 trillion for tax cuts, USD$300 billion increase in mandatory spending, and assumes 2.8% in economic growth.
  • Johnson intends to mark up the resolution in the House Budget Committee on Thursday, ahead of a one-week recess. Johnson is targeting the last week of February for a full House vote.
  • Senate Republicans, unconvinced the House can legislate the bulk of Trump's agenda in one bill, are petitioning the White House to get behind their two-step strategy that will send a slimmed-down border, defence, and energy bill to Trump’s desk as soon as possible, before turning attention to a tax reform bill later in the year.
  • Senate Budget Committee Chair Lindsay Graham (R-SC), who intends to mark up his competing resolution next week, said: “I talked to President Trump over the weekend. He wants to get results,” noting that Trump’s border tsar Tom Homan and OMB Director Russell Vought are “begging” for border money.
  • The Senate strategy appears to hold the most risk for markets. Getting two large reconciliation packages through the House will be exceptionally challenging, considering the asymmetrical power held by hardline fiscal conservatives. If Congress legislates popular border and energy items first, the success of the more complex tax reform bill will likely hinge on finding trillions of dollars of spending cuts to appease deficit hawks. 
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Jake Sherman at Punchbowl reports that House Speaker Mike Johnson’s (R-LA) budget resolution could target USD$1.5 trillion in spending cuts.

  • Sherman notes on Xthat the yet-to-be-finalised resolution could cover USD$4.5 trillion for tax cuts, USD$300 billion increase in mandatory spending, and assumes 2.8% in economic growth.
  • Johnson intends to mark up the resolution in the House Budget Committee on Thursday, ahead of a one-week recess. Johnson is targeting the last week of February for a full House vote.
  • Senate Republicans, unconvinced the House can legislate the bulk of Trump's agenda in one bill, are petitioning the White House to get behind their two-step strategy that will send a slimmed-down border, defence, and energy bill to Trump’s desk as soon as possible, before turning attention to a tax reform bill later in the year.
  • Senate Budget Committee Chair Lindsay Graham (R-SC), who intends to mark up his competing resolution next week, said: “I talked to President Trump over the weekend. He wants to get results,” noting that Trump’s border tsar Tom Homan and OMB Director Russell Vought are “begging” for border money.
  • The Senate strategy appears to hold the most risk for markets. Getting two large reconciliation packages through the House will be exceptionally challenging, considering the asymmetrical power held by hardline fiscal conservatives. If Congress legislates popular border and energy items first, the success of the more complex tax reform bill will likely hinge on finding trillions of dollars of spending cuts to appease deficit hawks.