Johnson discreetly circulates new budget proposal
The proposed plan aims to reduce spending to a lesser extent than what hard-liners desire, while also decreasing the likelihood of significant tax cuts.
TroibNews 
After a series of setbacks and delays, Speaker Mike Johnson on Monday night introduced a new budget blueprint, taking over from Rep. Jodey Arrington amid increasing frustration with the House Budget Committee chair.
Johnson's latest proposal features a lower range for spending cuts — between $1.25 trillion and $1.5 trillion — aimed at offsetting part of the substantial domestic policy package Republicans are pursuing, according to four individuals who requested anonymity to discuss private negotiations. This range of reductions surpasses what Johnson initially proposed to his conference last month but remains below the $2.5 trillion that some conservatives have advocated.
The magnitude of these cuts is just one of several factors Johnson and other House GOP leaders are grappling with as they attempt to unify support for an extensive border, energy, and tax package. They are seeking to use special budget reconciliation procedures to pass the legislation along party lines; however, they first need to achieve near-universal Republican agreement on a budget framework, and they have already missed an informal deadline for advancing that blueprint through committee.
Meanwhile, the Senate is poised to advance a competing budget plan later this week, which Johnson strongly opposes.
In another significant revision, the speaker's new draft may provide the Ways and Means Committee with even less fiscal flexibility to develop a comprehensive package of tax cuts. During their White House meeting on Thursday, Republicans had agreed to a $4.7 trillion instruction, but that figure is now expected to decrease, raising concerns among GOP members who fear they may struggle to include all of President Donald Trump's tax priorities in the legislation.
Johnson continued to circulate the plan among key House GOP factions late Monday, with the anticipated floor for spending cuts likely pegged closer to $1.5 trillion. If negotiations progress positively, he plans to unveil the new budget proposal at a closed-door House Republican Conference meeting on Tuesday morning, as noted by two sources.
However, GOP leaders must first ensure that their budget chair is fully supportive. During a meeting on the House floor Monday night, Johnson, House Majority Leader Steve Scalise, and other senior Republicans pressed Arrington for insights on how his more conservative committee members would react to the new leadership-led plan. They assumed he had engaged with the hard-line conservatives on the panel.
Arrington expressed uncertainty, which raised concerns among senior Republicans about his commitment to advocating for the plan with the hard-liners. They also pressed Arrington on how he would address the proposal in the Tuesday morning conference meeting, given that Johnson wanted him to contribute to the presentation.
Some Republicans feared Arrington could incite opposition, given his private sympathies for conservative causes. In recent days, Arrington and fellow Texan Rep. Chip Roy have been in conflict with Ways and Means Chair Jason Smith and other senior Republicans over Trump's tax cuts and funding strategies.
“They’re very worried that they’ll present the plan and Jodey will get questions as budget chair and will not back leadership up,” a senior GOP aide shared, adding: “This all stems from a leadership-Jodey Arrington beef. Jodey’s been really tough to nail down: Is he with leadership? Or is he with the rank-and-file budget members who are pushing back? Nobody can figure it out.”
A spokesperson for Arrington did not respond to requests for comment on Monday night.
It's important to note that Johnson is not excluding Arrington completely. Leaders still aim to navigate the budget plan through his committee, potentially as soon as this week, and expect him to take the lead on key details. However, they are growing concerned about the time he has taken, especially with Senate Republicans advancing their own bill this week, prompting anxiety among House GOP leadership about being sidelined.
Some Republicans are so worried that they have begun to consider whether to cancel next week’s House recess to expedite progress on the budget, although there are no indications that leadership is prepared to make such a move.
As recently as Friday, GOP leaders and conservatives believed they had tentatively agreed to cut up to $2 trillion in spending as part of their party-line domestic policy package. However, Trump's reluctance to support deep Medicaid cuts has emerged as a key obstacle behind the scenes.
GOP leaders informed senior Republicans in a series of private meetings on Monday that Trump had not yet greenlighted the significant Medicaid cuts required to secure an additional $800 billion in savings, according to three sources familiar with the discussions who, like others, spoke on condition of anonymity.
Johnson and senior Republicans are cautious about pursuing Medicaid reforms that could provoke Trump into publicly criticizing the plan. They indicated in private meetings that “they need to work with Trump” on the Medicaid issue before moving ahead, as one person relayed.
However, Trump and his team are concerned that such cuts could lead to political backlash. Many House Republicans, even those in competitive and some safely Republican districts, are wary of the idea of reducing Medicaid, even if those cuts do not directly affect individual benefits.
“Trump’s team has said he does not want to make this bill a health care bill,” said the previously mentioned senior GOP aide. “They don’t want anything too drastic on health care or savings because that becomes the talking point.”
Johnson is also contemplating reintroducing a debt limit increase into the reconciliation discussions following last Thursday’s White House meeting, prompted by Trump’s insistence. Nevertheless, the speaker and other GOP leaders remain skeptical about whether it can be included in a party-line package.
With this decision still unresolved, along with the specifics regarding spending reductions and tax cuts, senior House Republicans are pessimistic about the possibility of the plan advancing through the Budget Committee this week, as Johnson had originally hoped.
Ramin Sohrabi for TROIB News
Johnson's latest proposal features a lower range for spending cuts — between $1.25 trillion and $1.5 trillion — aimed at offsetting part of the substantial domestic policy package Republicans are pursuing, according to four individuals who requested anonymity to discuss private negotiations. This range of reductions surpasses what Johnson initially proposed to his conference last month but remains below the $2.5 trillion that some conservatives have advocated.
The magnitude of these cuts is just one of several factors Johnson and other House GOP leaders are grappling with as they attempt to unify support for an extensive border, energy, and tax package. They are seeking to use special budget reconciliation procedures to pass the legislation along party lines; however, they first need to achieve near-universal Republican agreement on a budget framework, and they have already missed an informal deadline for advancing that blueprint through committee.
Meanwhile, the Senate is poised to advance a competing budget plan later this week, which Johnson strongly opposes.
In another significant revision, the speaker's new draft may provide the Ways and Means Committee with even less fiscal flexibility to develop a comprehensive package of tax cuts. During their White House meeting on Thursday, Republicans had agreed to a $4.7 trillion instruction, but that figure is now expected to decrease, raising concerns among GOP members who fear they may struggle to include all of President Donald Trump's tax priorities in the legislation.
Johnson continued to circulate the plan among key House GOP factions late Monday, with the anticipated floor for spending cuts likely pegged closer to $1.5 trillion. If negotiations progress positively, he plans to unveil the new budget proposal at a closed-door House Republican Conference meeting on Tuesday morning, as noted by two sources.
However, GOP leaders must first ensure that their budget chair is fully supportive. During a meeting on the House floor Monday night, Johnson, House Majority Leader Steve Scalise, and other senior Republicans pressed Arrington for insights on how his more conservative committee members would react to the new leadership-led plan. They assumed he had engaged with the hard-line conservatives on the panel.
Arrington expressed uncertainty, which raised concerns among senior Republicans about his commitment to advocating for the plan with the hard-liners. They also pressed Arrington on how he would address the proposal in the Tuesday morning conference meeting, given that Johnson wanted him to contribute to the presentation.
Some Republicans feared Arrington could incite opposition, given his private sympathies for conservative causes. In recent days, Arrington and fellow Texan Rep. Chip Roy have been in conflict with Ways and Means Chair Jason Smith and other senior Republicans over Trump's tax cuts and funding strategies.
“They’re very worried that they’ll present the plan and Jodey will get questions as budget chair and will not back leadership up,” a senior GOP aide shared, adding: “This all stems from a leadership-Jodey Arrington beef. Jodey’s been really tough to nail down: Is he with leadership? Or is he with the rank-and-file budget members who are pushing back? Nobody can figure it out.”
A spokesperson for Arrington did not respond to requests for comment on Monday night.
It's important to note that Johnson is not excluding Arrington completely. Leaders still aim to navigate the budget plan through his committee, potentially as soon as this week, and expect him to take the lead on key details. However, they are growing concerned about the time he has taken, especially with Senate Republicans advancing their own bill this week, prompting anxiety among House GOP leadership about being sidelined.
Some Republicans are so worried that they have begun to consider whether to cancel next week’s House recess to expedite progress on the budget, although there are no indications that leadership is prepared to make such a move.
As recently as Friday, GOP leaders and conservatives believed they had tentatively agreed to cut up to $2 trillion in spending as part of their party-line domestic policy package. However, Trump's reluctance to support deep Medicaid cuts has emerged as a key obstacle behind the scenes.
GOP leaders informed senior Republicans in a series of private meetings on Monday that Trump had not yet greenlighted the significant Medicaid cuts required to secure an additional $800 billion in savings, according to three sources familiar with the discussions who, like others, spoke on condition of anonymity.
Johnson and senior Republicans are cautious about pursuing Medicaid reforms that could provoke Trump into publicly criticizing the plan. They indicated in private meetings that “they need to work with Trump” on the Medicaid issue before moving ahead, as one person relayed.
However, Trump and his team are concerned that such cuts could lead to political backlash. Many House Republicans, even those in competitive and some safely Republican districts, are wary of the idea of reducing Medicaid, even if those cuts do not directly affect individual benefits.
“Trump’s team has said he does not want to make this bill a health care bill,” said the previously mentioned senior GOP aide. “They don’t want anything too drastic on health care or savings because that becomes the talking point.”
Johnson is also contemplating reintroducing a debt limit increase into the reconciliation discussions following last Thursday’s White House meeting, prompted by Trump’s insistence. Nevertheless, the speaker and other GOP leaders remain skeptical about whether it can be included in a party-line package.
With this decision still unresolved, along with the specifics regarding spending reductions and tax cuts, senior House Republicans are pessimistic about the possibility of the plan advancing through the Budget Committee this week, as Johnson had originally hoped.
Ramin Sohrabi for TROIB News
