House Speaker Mike Johnson is facing a tough challenge as the Memorial Day recess approaches. This holiday break marks another deadline for him to bring a major budget reconciliation bill to the House floor, but significant disagreements within the GOP are complicating matters.
Back in January, Johnson optimistically suggested that Congress could wrap up its budget work by late April. By February, that timeline slipped to early May. Now, with less than two weeks to go, the pressure is mounting, especially as seven out of eleven House committees have already passed their parts of the mega-bill.
Internal conflicts among Republicans have mostly revolved around broad ideas, but that is starting to change as specific proposals are put forward. A notable incident occurred in the House Transportation Committee when Chairman Sam Graves had to withdraw a plan for a universal $20 fee on gas-powered vehicles. This plan aimed to eventually eliminate the federal gasoline tax, but it faced backlash from fellow Republicans who found it unacceptable.
In place of the gas fee, the committee proposed increasing the electric vehicle fee to $250. However, this is just one of many contentious issues that lie ahead. The Energy and Commerce and Ways and Means Committees are set to hold crucial meetings next week, where they will tackle significant budget cuts and tax adjustments. The Energy and Commerce Committee has been tasked with finding $880 billion in cuts over the next decade, while Ways and Means has a $4.5 trillion budget for tax cuts.
Moderates within the GOP are pushing for limited reforms to Medicaid, which has led to some inconsistency in Johnson’s messaging. He has been hesitant about what reforms to pursue, such as changes to the federal reimbursement rate for Medicaid services. Recently, he indicated that two major reforms, FMAP changes and per-capita caps, might be off the table, which did not sit well with more conservative members of the party.
Moderates are proposing a three-part plan for Medicaid reform, which includes stricter work requirements for able-bodied adults, more frequent eligibility checks, and cutting benefits for undocumented immigrants. However, even if these proposals are accepted, they may not provide enough savings to meet the ambitious $880 billion target.
Conservatives are pushing back against the moderates’ demands, especially regarding the SALT deduction, which they believe could worsen the deficit. A group of thirty-two House Republicans recently sent a letter to Johnson and House Majority Leader Steve Scalise, emphasizing that the reconciliation bill must not add to the deficit and must prioritize fiscal discipline.
As the clock ticks down to the Memorial Day deadline, the pressure is on. Some members, like Rep. Buddy Carter, have expressed doubts about meeting Johnson’s timeline. With so much at stake, the coming weeks in Congress will be critical as lawmakers work to finalize their budget plans.