Speaker Mike Johnson (R-La.), in an interview on Fox News’ Sunday Morning Futures, announced plans to pass a sweeping bill addressing President-elect Donald Trump’s priorities, including border security, tax cuts, and deregulation, by May. Johnson said he wants this bill done by the House the first week in April, with the goal of getting it to Trump’s desk by the end of the month, though Johnson acknowledged yesterday that the bill could slip into May.
Channeling Trumpian lingo, Johnson has called it “one big, beautiful bill.” Using the Senate’s reconciliation process, Republicans aim to bypass Democratic opposition, but internal GOP divisions over the bill’s scope and timeline may pose challenges.
Key Elements of the Bill and Funding
Key elements of the bill include funding for mass deportations, extending 2017 tax cuts, addressing the debt ceiling, and dismantling federal regulations. Other reports note it will include unprecedented spending to tighten borders and remove people here illegally, energy deregulation. The bill reportedly will include Trump’s popular “no tax on tips” campaign promise.
There will be unprecedented spending cuts to help pay for it all. Republicans are searching for ways to pay for parts of the plan via spending cuts plus energy revenue. (See next item for some potential details of cuts.)
Some GOP Opposition
Sen. Lindsey Graham (R-S.C.) called for prioritizing border security separately, criticizing the “cram-it-all” approach. Sen. Ron Johnson (R-Wis.) suggested a two-step process to manage legislative complexity.
Urgent Timeline
Johnson emphasized the importance of swift action, targeting Trump’s signature by May, ahead of the 2026 midterms.
Of Note:
Trump publicly voiced support for this approach in a social media post Sunday. Trump said Republicans must “Secure our Border, Unleash American Energy, and Renew the Trump Tax Cuts.” The president-elect also called for his “no tax on tips” pitch to be in the bill. Trump said the cost of these policies will “all be made up with tariffs.” Republicans face internal debates on whether consolidating or segmenting Trump’s priorities is the most viable path forward. Trump’s 2017 tax cuts are set to expire at the end of this year without legislative action.
Other Proposals to Reduce Spending
Republicans are considering several programs and areas to cut funding or reduce spending to help pay for tax cuts in 2025. Here are some possibilities being mentioned:
Welfare Programs
- Medicaid: Republicans are considering implementing caps and deep cuts to federal Medicaid funding through block grants and/or per capita caps. This could result in significant reductions in Medicaid spending.
- SNAP (Food Stamps): There are proposals to roll back funding for the Supplemental Nutrition Assistance Program by limiting what items recipients can purchase and potentially adding work requirements.
Environmental Regulations
Republicans are likely to repeal environmental regulations implemented by the Biden administration, which could free up federal funds. This includes:
- Repealing the Inflation Reduction Act
- Lowering energy costs and increasing oil and gas production
Green Energy Subsidies
Observers indicate that Republicans are likely to look at cutting green energy subsidies from the 2022 Inflation Reduction (Climate) Act to help balance out the cost of their new tax proposals. But biofuel program stakeholders in the energy and ag sectors, and farm-state lawmakers, do not want to alter tax incentives programs like 45Z.
Federal Spending Cuts
The incoming administration is expected to cut federal spending to programs they don’t prioritize, such as:
- Environmental regulations
- Prescription drug coverage in federal health care programs
- Adding requirements to welfare programs
Tariffs
Trump has proposed adding tariffs to imports to supplement lowering taxes for Americans, although many economists have opposed this idea.
Trump’s aides are exploring a tariff plan targeting critical imports from all countries, according to the Washington Post. The proposal represents a shift from the broader 10%-20% universal tariffs suggested during Trump’s campaign. Economists warn such measures could inflate consumer prices and disrupt global trade patterns. However, the WaPo story “incorrectly states that my tariff policy will be pared back,” Trump said on Truth Social. “That is wrong.” Trump added that the sources in that story don’t exist.
Other Potential Areas
- Reducing funding for the Internal Revenue Service
- Cutting clean energy programs that benefit conservative districts
- Implementing a financial transaction tax on stock, debt, and derivatives transactions
- University endowment tax hike — Some Republicans have floated boosting the 1.4% tax on endowments to as high as 35% for certain universities
While these are areas Republicans are considering, the specific cuts and their extent may change as negotiations progress and the political landscape evolves.
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