Congress Puts Final Touches on Bill With Drastic Cuts in Federal Spending

WASHINGTON — The Trump administration’s proposals for a long-term tax bill faced a key test Tuesday after three congressional committees met to try to align their portions of the multitrillion-dollar plan to the president’s agenda.

Each of the House committees is proposing dramatic cutbacks in government spending that would be needed to accommodate the planned tax cuts and budget revisions. 

The markup proceedings of the Ways and Means Committee, Energy and Commerce Committee and Agriculture Committee are expected to last into Wednesday.

Most controversial would be a revamping of Medicaid and food stamps that would make recipients work at least part-time and require more frequent checks of their eligibility.

In addition, the House Energy and Commerce Committee wants to phase out environmental regulations and tax credits for electric vehicles.

“This bill delivers on what Americans voted for with President Trump’s promise to put America first, with tax policies that reward hard work, bring jobs back home, increase opportunity and rebuild the economy for the working class,” said Ways and Means Chairman Jason Smith, R-Mo.

The final bill is scheduled for a vote on the House floor as soon as next week. 

Even some of Trump’s Republican supporters are expressing concern over possible cuts to Medicaid. They say millions of people would be left without health insurance coverage or face costs they cannot afford.

Other parts of the “one big, beautiful bill” Republicans seek would increase military spending.

A Congressional Budget Office analysis of the preliminary budget circulated this week shows it would reduce federal spending by $912 billion over the next decade.

Most of the budget cuts, or $715 billion, would result from revisions to Medicaid and the Affordable Care Act. Along the way, about 8.6 million people are expected to lose their health insurance.

The bill would increase the paperwork Medicaid recipients must complete. If they do not respond promptly to government inquiries about their eligibility, they could lose coverage.

The proposed revisions also would require low-income, able-bodied adults without children to work at least 80 hours per month to continue receiving benefits. Single persons earning at least $15,650 per year would need to make co-payments of $35 for doctors visits. 

Implementation of the changes would be delayed until January 2029 and the election of a new president.

The preliminary spending bill prompted outrage from Democrats. No Democrats have indicated they would vote for it.

“In no uncertain terms, millions of Americans will lose their health care coverage, hospitals will close, seniors will not be able to access the care they need, and premiums will rise for millions of people if this bill passes,” Rep. Frank Pallone, D-N.J., said in a statement.

House Minority Leader Hakeem Jeffries, D-N.Y., said in an interview with MSNBC, “And the reality is, because of this House Republican bill, if it were to pass and become law, people will die.” 

Most of the other savings would come from repealing Biden administration regulations on reducing automobile emissions.

Last year, the Environmental Protection Agency acted under guidelines from then-President Joe Biden to enact auto emission regulations that would have forced about two-thirds of the vehicles sold to be electric by 2032.

The bill that was getting its last refinements in Congress Tuesday would eliminate the strict auto emission rules. 

EPA Administrator Lee Zeldin explained the Trump administration’s rationale in a statement in March saying, “The American auto industry has been hamstrung by the crushing regulatory regime of the last administration. As we reconsider nearly $1 trillion of regulatory costs, we will abide by the rule of law to protect consumer choice and the environment.”

The proposed changes to energy policy would create more revenue for the federal government.

Getting rid of Biden administration rules promoting electric vehicles means more motorists would drive gasoline-powered vehicles, thereby paying more money for the federal fuel tax.

Republicans also want to take back part of the money that was reserved for environmental programs under the 2022 Inflation Reduction Act. The act set aside $663 billion for climate action programs to reduce greenhouse gas emissions.

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