Will GOP’s $2 Trillion Savings Demand Shake Up Budget Talks?

Republican elephant symbol on American flag background

House Republicans narrowly passed a budget resolution with a slim margin, but now 32 GOP representatives are upping the ante by demanding a minimum of $2 trillion in spending cuts before they’ll support the final reconciliation bill.

Quick Takes

The House passed President Trump’s budget resolution by just two votes (216-214), with some Republicans initially opposing it until they promised at least $1.5 trillion in savings.
A group of 32 House Republicans is now demanding even deeper cuts of at least $2 trillion before supporting the final reconciliation bill.
Budget reconciliation allows Republicans to bypass the Senate’s 60-vote threshold to pass Trump’s agenda.
Major disagreements exist among Republicans over which programs to cut, with Medicaid being a particular point of contention.
Speaker Johnson hopes to pass the legislation by Memorial Day, but faces a September 30 deadline to maintain budget process benefits.

Slim Majority Complicates Budget Path

The Republican-controlled House narrowly passed a budget resolution by a vote of 216-214, with two Republicans joining all Democrats in opposition. The slim margin highlights the delicate balance Speaker Mike Johnson must maintain as he navigates Republican priorities in a chamber where just a few defections can derail legislation. The successful vote came only after House conservatives who initially opposed the resolution were promised their demands for significant spending cuts would be addressed in the final reconciliation package.

This budget resolution represents the first step in the reconciliation process, which would allow congressional Republicans to bypass the Senate’s 60-vote threshold and implement President Trump’s policy agenda with a simple majority. With Republicans controlling both chambers but lacking a filibuster-proof majority in the Senate, reconciliation provides their clearest path to enact Trump’s priorities, including tax cuts, increased defense spending, and expanded border security.

🚨Today, 32 Members of the House of Representatives sent a letter to leadership laying out their conditions for supporting a reconciliation bill, reiterating that it should “adhere to the House framework” by including at least $2 trillion in budgetary savings or fewer tax cuts.… pic.twitter.com/HKMS3KKpeR

— CRFB.org (@BudgetHawks) May 7, 2025

Fiscal Hawks Demand Deeper Cuts

While the initial framework promised $1.5 trillion in savings, a group of 32 House Republicans is now demanding that number be increased to at least $2 trillion before they’ll support the final reconciliation bill. This intensifies pressure on GOP leadership already navigating significant differences between House and Senate priorities. The Senate had initially proposed just $4 billion in cuts, a figure House conservatives rejected as grossly inadequate given current deficit concerns.

The resolution employs a “current policy baseline” tactic that doesn’t count the cost of extending the 2017 tax cuts, a move that’s drawn criticism from fiscal watchdogs. Rep. Thomas Massie, one of two Republicans who voted against the resolution, went so far as to call it a “framework for financial collapse,” highlighting the deep divisions even within the Republican conference about fiscal priorities.

Battle Over Entitlement Programs

A major sticking point in the negotiations involves potential cuts to entitlement programs. Democrats have criticized the Republican budget framework, claiming it would necessitate extreme cuts to Medicaid, Medicare, and Social Security. Even within Republican ranks, there are significant disagreements over cuts to Medicaid, with some moderate Republicans expressing opposition to deep reductions in the healthcare program that serves low-income Americans.

The defense budget has become another contentious area, with some House Republicans pushing for defense spending to exceed $1 trillion. This comes as fiscal hawks face increased pressure to address deficits that have grown substantially since the 2017 tax package was implemented. Balancing these competing priorities while satisfying enough members to pass legislation with such a narrow majority presents a significant challenge for Republican leadership.

Trump’s Direct Involvement

President Trump has taken a hands-on approach to these negotiations, making private calls and applying public pressure on lawmakers to support the budget framework. His direct involvement reflects the importance of this legislation to his administration’s agenda. The reconciliation bill is intended to implement key Trump priorities, including extending the 2017 Tax Cuts and Jobs Act, raising the debt ceiling, and increasing funding for defense and border security initiatives.

Time constraints add another layer of complexity to the process. Speaker Johnson hopes to pass the legislation by Memorial Day, an ambitious timeline given the depth of disagreements. However, the ultimate deadline is September 30, after which Republicans would lose key budget process benefits. This creates a pressure-cooker environment for negotiations between the House and Senate, with little room for extended deliberations if Republicans hope to deliver on their campaign promises.