Johnson talks with reporters on Tuesday. Photo: Kent Nishimura/Bloomberg via Getty Images
The House on Tuesday night narrowly adopted Republicans' budget resolution, setting up a reconciliation bill that could make steep cuts to energy and climate spending.
Why it matters: House Republicans overcame internal objections about how much to slash spending — but still face big challenges in their effort to scale back the IRA and repeal regulations.
Driving the news: After hours of uncertainty, the resolution was approved 217-215, with Republican Thomas Massie and every Democrat voting "no."
- Approval came after House leaders were right on the verge of pulling the bill from consideration — only to abruptly reverse themselves.
Zoom in: To get it across the finish line, Speaker Mike Johnson and other leaders essentially punted on the biggest policy disputes, insisting that the resolution is merely a blueprint to begin writing a bill.
- That's technically true. But huge hurdles remain.
- Among the biggest challenges is the resolution's direction that the Energy and Commerce Committee cut $880 billion.
Much of that would likely have to come from politically contentious changes to Medicaid. But Republicans are hoping they can get a big chunk of savings by repealing IRA spending and rolling back auto emissions standards.
- Any regulatory rollback is likely to run into trouble with the Senate parliamentarian.
What's next: Committees can now begin putting together a reconciliation measure based on the allocations spelled out in the budget resolution.
- The House GOP wants to enact the Trump agenda in a single package centered on tax cuts and border spending.
- But the Senate is still pursuing a two-bill strategy that starts with a more modest bill that would include defense, border and an expansion of energy leasing.
