Senate Budget Vote Leaves Snags For Tax Cuts, Debt Limit

The budget plan passed by the Senate before dawn presents significant challenges for President Donald Trump’s tax cut agenda and the effort to raise the debt ceiling before a possible U.S. payment default this summer, Eric Wasson reported for Bloomberg News.

Like the Senate’s version, the House proposal also prioritizes defense and border funding.

The Senate voted 52 to 48 to approve a budget that allows for $340 billion in new spending, primarily to bolster military and border security funds.

Senate Republicans describe it as a backup proposal, as the GOP-led House struggles to advance its own, more ambitious plan aimed at enacting trillions in tax and spending cuts while raising the debt ceiling.

Earlier this week, Trump voiced support for the House budget outline. That plan would allow at least $4.5 trillion in tax cuts in exchange for at least $2 trillion in spending cuts and a $4 trillion increase in the debt ceiling.

Like the Senate’s version, the House proposal also prioritizes defense and border funding.

Despite Trump’s endorsement of the House bill, Senate Majority Leader John Thune and his allies proceeded with all-night votes on their narrower proposal, arguing that debates over tax policy will take months, while funds are urgently needed to curb illegal immigration.

Thune has stated that he favors a bipartisan approach to raising the debt ceiling before the deadline, but has yet to outline a concrete plan.