Republicans in the U.S. House Thursday morning passed the multi-trillion dollar budget reconciliation bill after more than a day of debate in committee before reaching the full House floor.
The vote in the House was razor thin, 215-214, with two Republicans joining all Democrats in voting against it.
The reconciliation bill, compiled from 11 House committee prints fulfilling the Republican budget resolution’s spending and saving instructions, funds President Donald Trump’s tax, border, defense, and energy agenda at the cost of at least $3.3 trillion over the next decade. It also includes a $4 trillion debt ceiling hike.
To help partially offset the cost, committees found $1.5 trillion in savings by reforming Medicaid and SNAP programs, repealing or phasing out renewable energy subsidies from the Inflation Reduction Act, and canceling the Biden administration’s student loan forgiveness program, among other things.
Most of the legislation’s enormous price tag results from the permanent extension of the 2017 Tax Cuts and Jobs Act, including the $15,000 standard deduction, 20% Qualified Business Income (QBI) deduction, and $2,000 child tax credit – both parents would need a Social Security number to claim it.
Some temporary tax changes lasting until 2028 include nixing taxes on tips and overtime, making the Adoption Tax Credit partially refundable, ending interest on loans for American cars, and increasing tax deductions for eligible seniors by $4,000.
Democrats pushed back against cuts to SNAP, Medicaid, renewable energy grants, and more.
"This is what Republicans do – pay for massive tax breaks for billionaires by going after programs families rely on the most: Medicaid, food assistance, and now Medicare," U.S> Rep. Brendan Boyle, D-Pa., said. "It's reckless, dishonest, and deeply harmful to the middle class."
SNAP reforms include requiring states to cover 5% of their SNAP benefit cost share by fiscal year 2028, with their contribution increasing the higher the state’s payment error rate. The federal government currently funds 100% of SNAP benefits.
The legislation also makes all noncitizens, aside from legal permanent residents ineligible for SNAP, as well as closes “waiver gimmicks” used by states to exempt large numbers of able-bodied beneficiaries from work requirements.
The bill’s Medicaid provisions included changing Medicaid eligibility requirements back to pre-COVID-19 standards; imposing work requirements on most able-bodied adult recipients without dependents; and closing financing loopholes exploited by states.
Democrats accused Republicans of “cruelty” during the hearing, saying millions of people would lose Medicaid coverage.
Adding to the Democratic opposition, Republican fiscal hawks demanded more Medicaid spending reductions and sooner expiration dates for renewable energy subsidies.
In the end, two Republicans, voted against it: Reps. Thomas Massie, R-Ky., and Warren Davidson, R-Ohio. Rep. Andy Harris, R-Md., voted "present."
House Speaker Mike Johnson, R-La., wanted the bill to pass the House by Thursday.
Comer, along with House Republican Leadership, speaking after the passage of the budget reconcilliation bill
