House Republican committee chairs have outlined potential federal spending cuts ranging from $2.5 trillion to $3 trillion as part of their efforts to fund a massive tax cut package, according to a report by Punchbowl News on Friday.
The proposals, discussed during a closed-door meeting this week, would significantly reshape federal programs and services, sparking debate over the potential consequences for millions of Americans.
The Energy and Commerce Committee is leading the charge with proposed cuts of up to $2 trillion, targeting programs such as Medicaid, environmental regulations, and energy policies.
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Plans under consideration include per capita spending caps on Medicaid, the introduction of work requirements for recipients, and the rollback of several environmental protections implemented during the Biden administration.
“The federal government is bloated and inefficient,” said Rep. Eric Burlison (R-MO), a member of the House Oversight and Accountability Committee. “Agencies overlap, duplicate efforts, and waste your tax dollars. I’m calling for major cuts to eliminate this waste. It’s time to streamline and put America first.”
Major Areas Targeted for Cuts
- Medicaid:
Medicaid, which accounted for $817 billion in federal spending in 2023, is a key target. House Republicans are considering citizenship requirements and work mandates for recipients—policies that could save an estimated $100 billion over the next decade, according to projections cited by The New York Times. - Student Loan Programs:
The House Education and Workforce Committee is proposing up to $500 billion in cuts, primarily focusing on reforms to federal student loan programs. Suggested changes include lowering borrowing limits, restricting non-citizen eligibility, and capping public service loan forgiveness programs. The federal Direct Loan Program currently costs taxpayers approximately $197 billion annually, according to the U.S. Government Accountability Office. - Food Assistance Programs:
The House Agriculture Committee has proposed reductions between $100 billion and $250 billion that could impact the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. The proposed cuts could significantly affect low-income families who rely on the program for food security. - Federal Employee Benefits:
The Oversight and Government Reform Committee has suggested $66 billion in reductions, specifically targeting federal employee retirement and health benefits. These cuts could have widespread implications for the federal workforce.
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In addition to spending cuts, House Republicans are exploring revenue-generating options. The Judiciary Committee is considering imposing fees for immigration-related processes such as asylum applications, annual renewals, detention, parole, and visa overstays.
The Transportation and Infrastructure Committee has proposed increasing fees on the shipping industry and imposing new fees on electric vehicles, estimating potential savings of up to $26 billion.
These proposals come as House Republicans prepare for a major budget reconciliation package, a process that allows spending and tax legislation to pass with a simple majority in the Senate. With a slim 217-215 majority in the House, Republicans face significant political hurdles in advancing these sweeping reforms.
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House Budget Chair Jodey Arrington (R-TX) has been actively pushing cost-saving options, emphasizing the need for “fiscal responsibility and economic growth.” However, Democrats and advocacy groups have already voiced strong opposition to the proposed cuts, arguing they would disproportionately harm vulnerable populations and middle-class families.
It remains unclear when House Republicans will unveil their final spending cut proposals or the exact scope of the tax cuts they intend to pursue. As negotiations continue, the debate over balancing fiscal responsibility with social safety net programs is expected to intensify.
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