While Congress is struggling to agree on government funding for this year, House Republicans have introduced a plan to balance the federal budget in ten years.
Their plan involves cutting $14 trillion from various parts of the government, like subsidies for green energy and forgiving student loans. At the same time, they want to lower taxes.
The House Budget Committee approved the plan with only Republican votes, just before President Joe Biden’s State of the Union Address and a few days before he’s supposed to release his budget plan.
House Speaker Johnson thinks this plan is important for fixing the country’s money problems, but the White House doesn’t like it. They say it helps rich people more than middle-class families.
It’s hard for Republicans to pass laws because Democrats control the Senate and don’t agree with them on a lot of things.
House Republicans’ budget plans (Via Kai Jones/Getty Images)
They had to change the rules to pass a temporary funding bill and avoid a government shutdown, even though some Democrats supported it.
The person in charge of the Budget Committee thinks this plan could not only reduce the huge federal debt, which is now over $34 trillion but also make a $44 billion surplus by 2034, which could help the economy by cutting taxes.
But Democrats say this plan would hurt regular families more. They think President Biden’s budget plan, which is coming soon, is a fairer way to manage money.
The Republican budget plan for 2025 keeps the same amount of money for regular government spending as last year’s plan, but they want to make big cuts starting in 2026, after the next elections in November, when people will vote for the President and Congress.
