House Republican committee chairs outlined potential spending cuts ranging from $2.5 trillion to $3 trillion to fund a massive tax cut package during a closed-door meeting this week, Punchbowl reported Friday.
The proposed cuts span multiple federal programs, with the Energy and Commerce Committee leading the charge with up to $2 trillion in potential reductions. Proposals include per capita caps on Medicaid, work requirements for program recipients and rollbacks of environmental regulations, according to the outlet.
“The federal government is bloated and inefficient,” Republican Missouri Rep. Eric Burlison, who sits on the House Oversight and Accountability, Transportation and Infrastructure, Education and the Workforce Committees, said. “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.”
The federal government is bloated and inefficient.
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.
— Eric Burlison (@EricBurlison) January 16, 2025
Medicaid expenditures accounted for $817 billion in federal spending in 2023, comprising 18% of all healthcare expenditures nationally. Imposing citizenship parameters and work requirements for Medicaid recipients, as some GOP members have suggested, could save an estimated $100 billion over the following decade, The New York Times reported.
The Education and Workforce panel reportedly aims to cut up to $500 billion, primarily through federal student loan reforms. Proposed measures include lowering borrowing limits, restricting loan eligibility for non-citizens and capping the public service loan forgiveness program. The federal Direct Loan Program costs the American taxpayer $197 billion annually, with increases driven by the skyrocketing cost of higher education, according to the U.S. Government Accountability Office.
Other committees reportedly have similar targets. The Agriculture Committee proposed $100 billion to $250 billion in cuts, potentially impacting the Supplemental Nutrition Assistance Program (SNAP), colloquially known as food stamps. The Oversight and Government Reform panel suggested $66 billion in cuts from federal employee retirement and health benefits.
Committee chairs are also considering their options for generating revenue through increased fees on certain industries and on immigration processes.
The Judiciary Committee is exploring imposing fees for asylum applications, annual renewal, detention, parole and visa overstays. The Transportation and Infrastructure Committee reportedly proposed raising tonnage duties for ships, as well as imposing fees on electric vehicles, which they say could amount to up to $26 billion in federal savings.
How the U.S. Government Spent your Tax Dollars in 2024:
-State Department spent $2.1 million on border security—for Paraguay.
-USAID is spending $20 million on “Ahlan Simsim” a new Sesame Street show in Iraq
-The National Endowment for the Arts awarded the Bearded Ladies…— Department of Government Efficiency (@DOGE) December 24, 2024
The proposals come as House Republicans prepare for a reconciliation package, facing a razor-thin majority of 217-215. Budget Chair Jodey Arrington of Texas has been particularly active in developing cost-saving options.
Reconciliation rules require an aggressive approach to federal spending, with potential far-reaching implications for federally-funded programs, immigration policies and federal employee benefits.
It is unclear when House Republicans will unveil final proposals, or to what extent they plan to cut taxes.
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