Republicans flinch at rare chance to slash spending

Congressional Republicans finally have the power to reduce massive federal spending, but they are paralyzed by intraparty divisions and could scale back their plan to slash taxes.

Despite their endless talk about shrinking federal government growth, Republicans have found it difficult to cut spending and reduce taxes without increasing massive deficits.

“It’s exceptionally hard to make cuts,” said Rep. Jefferson Van Drew, New Jersey Republican. “And it’s exceptionally easy to add on more and more into the budget.”

Mr. Van Drew, a former Democrat, is among a group of Republican moderates who are wary of significant revisions to Medicaid, the nation’s largest entitlement program.

Republicans hoped to offset tax cuts by slashing hundreds of billions of dollars from the program. Their plan calls for lowering the federal reimbursement rate to the states for Medicaid and establishing a fixed amount, or cap, for beneficiaries.

House Speaker Mike Johnson, Louisiana Republican, is facing a revolt from swing-district moderates whose support he needs to pass the tax cuts and has all but abandoned Medicaid reforms.

Without the reforms, House Republicans would have a hard time reaching the $2 trillion in cuts they hoped would offset the tax cuts.

House Republican leaders are now considering a less-ambitious plan: reducing federal spending cuts to $1.5 trillion over the next decade. They would have to scale back tax cuts from $4.5 trillion to $4 trillion.

Republicans blame Democrats for the difficulties in reducing government spending. They accuse Democrats of lying when they claim reforms would lead to massive cuts in services for the neediest.

“They are just shamelessly misrepresenting what we are doing,” said Sen. John Cornyn, Texas Republican.

Democrats in recent weeks have spent millions of dollars on ads targeting vulnerable Republican House members. The ads warn that Medicaid changes would strip health care from millions of people and cut nursing home funding.

Sidelined by their crushing defeat in the November elections, Democrats have centered their message on opposing President Trump’s efforts to slash the size and cost of the federal government through his Department of Government Efficiency, headed by Elon Musk.

Democrats have vilified Mr. Musk and have turned their attacks on Republicans attempting to codify his cuts into law.

Democrats are especially hammering plans to rein in the massive cost of entitlements. One proposal is to increase work requirements for the Supplemental Nutrition Assistance Program, or SNAP, and shift some of the cost to states.

The House Agriculture Committee hoped to slash at least $150 billion in federal spending, partly by reforming the food stamp program.

“House Republicans are determined to jam a reckless and extreme budget down the throats of the American people,” said Minority Leader Hakeem Jeffries, New York Democrat. “It will enact the largest cut. To Medicaid and the largest cut to SNAP in American history. Children, families, women, veterans, older Americans, people with disabilities, and everyday Americans will be hurt.”

Republicans face a deadline later this month for advancing a “big, beautiful bill” that is intended to become the central economic achievement of Mr. Trump’s second-term agenda.

Mr. Trump wants the legislation to extend his 2017 tax cuts, which expire in January, and eliminate taxes on tips, overtime and Social Security payments to seniors.

The president pledged that the bill would cut more than $1 trillion in federal spending by eliminating waste and making other reforms. He promised not to cut Medicare or Social Security and would “defend Medicaid for those great people that are in need.”

House conservatives have proposed at least $2 trillion in cuts, which would reduce spending growth over the next decade by a minuscule 2.3%.

With those cuts, annual spending is still expected to grow from $7 trillion to $10 trillion over the next decade. The debt would exceed $50 trillion by 2035.

Mr. Trump aligns with conservatives’ ambitions to slash spending growth.

His 2026 budget proposes a 22.6% reduction in nondefense discretionary spending. Moderate congressional Republicans oppose it.

White House officials said the reductions would generate billions of dollars in savings over 10 years and balance the federal budget for the first time in decades.

However, Republican lawmakers quickly rejected many of the cuts, big and small, including a Trump administration plan to eliminate the Low Income Home Energy Assistance Program.

The administration said the $4 billion program is rife with fraud and would no longer be needed because of Trump policies to significantly lower energy prices.

It’s not going anywhere in the Senate.

“I’m very much opposed to cutting LIHEAP,” said Senate Appropriations Committee Chairwoman Susan M. Collins, Maine Republican.

Rep. Barry Loudermilk, Georgia Republican, said his party is focused on eliminating wasteful spending, but even those cuts have become impossible in Washington.

“This town, this whole government system, is based on the status quo, and you’re really upsetting the status quo when you start doing what the president is doing through DOGE and cutting things that have been held tightly in the past,” Mr. Loudermilk said. “There’s some discomfort with doing some of these things. But we have to do that. The biggest thing is just ripping off the Band-Aid.”