The budget plan the Senate passed before dawn on Friday leaves large hurdles for President Donald Trump’s tax cut agenda and for raising the debt ceiling before a possible payments default in the summer.
The Senate recently passed a budget plan that complicates President Trump's tax cut agenda and raises concerns about the debt ceiling. The plan allocates $340 billion for military and border security, differing from the House's more ambitious proposal. While Trump supports the House's $4.5 trillion tax cut plan, the Senate proceeded with their narrower approach, emphasizing quick action on tax policy and immigration funding. The House faces internal divisions, with moderates opposing anti-poverty cuts and conservatives seeking deeper reductions. Despite Trump's goal to balance the budget, the House plan would increase deficits by $3 trillion over a decade. Senate Republicans aim for larger tax cuts without deeper spending, while Democrats criticize the plan for harming low-income programs. Bipartisan talks are nearing completion, but challenges remain.