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Home FINANCE

House Vote Clears Path for Permanent Trump Tax Reductions​: Here is What You Need to Know

Michael Juanico by Michael Juanico
April 10, 2025
in FINANCE, OPINION, POLITICS
Reading Time: 4 mins read
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  • House Republicans narrowly passed a budget resolution that advances Trump’s legislative agenda despite internal party tension.
  • The plan includes $1.5 trillion in proposed spending cuts, sparking concern over potential hits to programs like Medicaid.
  • Trump’s allies reassured skeptical lawmakers, claiming Medicaid won’t be touched and emphasizing tax cuts and border security.

After a night of drama and infighting, House Republicans finally scraped together enough support to pass a resolution Thursday that clears the way for President Trump’s ambitious legislative plan. The vote passed narrowly—216 to 214—with two GOP members joining Democrats in opposition.

🚨 DONALD TRUMP: “Biggest Tax Cuts in USA history!!! Getting close” 👀 pic.twitter.com/Gwc7Hvbfz4

— BlockNews (@blocknewsdotcom) April 10, 2025

It didn’t come easy. Conservatives from the Freedom Caucus and budget hawks nearly derailed the whole thing, worried the plan would just blow up the national debt. But by Thursday morning, Speaker Mike Johnson and Senate Majority Leader John Thune promised they’d find $1.5 trillion in cuts—possibly from programs like Medicaid—so things could move forward.

GOP Says Cuts Are Coming—But No One Knows From Where

Johnson told reporters that Republicans are totally aligned on the need for fiscal responsibility. “We want savings, but we also want to keep the programs that matter,” he said, echoing the party’s claim that massive cuts can come just by targeting “waste, fraud, and abuse.”

Nonpartisan budget folks, though, say that’s wishful thinking. The math, they argue, doesn’t add up unless real programs—like Medicaid—get hit. Even some Republicans aren’t buying it.

Thursday’s resolution sets up what could become a giant budget bill passed through reconciliation. That’s the Senate loophole that lets them bypass a filibuster and push legislation through with just GOP votes.

Big Promises, Bigger Numbers

The bill is expected to cover a bunch of Trump’s second-term priorities: more money for border security, domestic energy, and a wave of tax cuts, including making the 2017 tax cuts permanent. That one alone could add $3.8 trillion to the deficit over the next decade. Toss in another $1.5 trillion in proposed tax breaks, and yeah—it’s expensive.

While the House plan demands $1.5 trillion in spending cuts, the Senate version is way more relaxed—barely requiring any cuts at all. That split has folks like Rep. Eric Burlison worried the Senate is setting them up to fail. “We’re gonna get screwed,” he said bluntly.

Still, some reluctant Republicans flipped after assurances from Trump and his allies that cuts would come eventually. Trump even told them at a fundraiser, “Close your eyes and get there.”

Medicaid on the Chopping Block?

That’s what many are worried about. The House instructions include $880 billion in cuts from the House Energy and Commerce Committee’s jurisdiction. According to budget experts, there’s just no way to do that without slashing Medicaid.

Even some Senate Republicans who backed the plan, like Sen. Josh Hawley, say they won’t support the final version if it includes Medicaid cuts. But Hawley claims Trump told him personally that benefits wouldn’t be touched.

“I talked to Trump for a good bit,” Hawley said. “He said no cuts to Medicaid. He won’t sign it.”

Great News! “The Big, Beautiful Bill” is coming along really well. Republicans are working together nicely. Biggest Tax Cuts in USA History!!! Getting close. DJT

Donald Trump Truth Social 04/10/25 08:28 AM

— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 10, 2025

The Bottom Line

This resolution is just a framework, but it sets the tone for what’s to come. House Republicans want to push forward hard with Trump’s agenda, but deep divides remain—especially when it comes to how to pay for all of it. And with Medicaid, taxes, and the debt ceiling all wrapped into one messy package, things are likely to get even messier from here.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: DemocratsFreedom CaucusHouse RepublicansMike JohnsonPresident Trump
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Michael Juanico

Michael Juanico

Michael is a BSBA Management graduate from Mindanao State University and has been a professional content writer since 2019. He began exploring cryptocurrency in 2021 and has since made blockchain and digital assets his primary focus. For nearly four years, Michael has contributed research and editorial content at Aiur Labs and BlockNews, producing clear and accessible coverage of market trends, trading strategies, and project developments. He is transparent about his personal holdings in Bitcoin, TRON, and select meme tokens, combining writing expertise with hands-on market experience to deliver trustworthy insights to readers.

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