The Republican leadership in the House is moving forward with a budget deal that will send the president a $1 trillion tax cut, a major win for Republicans after years of criticism that he has not done enough to stimulate the economy.
The House passed the legislation on Thursday night, and House Speaker Paul Ryan (R-Wis.) announced it on Twitter shortly after midnight.
The package is expected to pass the Senate next week, where President Donald Trump is expected back.
The bill includes $1.5 trillion in spending cuts and $1,000 in tax increases, the most significant reductions to government spending since the Reagan era.
Republicans will still have to approve $1 in spending increases and $300 billion in tax hikes, but the bill will put pressure on Democrats to raise the debt ceiling and raise the government’s borrowing limit in order to avoid a default.
The measure would also eliminate funding for a series of programs that President Barack Obama championed, including the National Endowment for the Arts and the National Institutes of Health, and end the use of funds for the United Nations.
The White House has argued that Trump should not be expected to keep spending levels at current levels, and Republicans are pushing back on that.
Ryan has argued in the past that the president should have the ability to cut spending to match the economic recovery and to keep the government operating at full capacity.
House Budget Committee Chairman Rep. Diane Black (R) of Tennessee, who was one of the most outspoken critics of the plan, called the tax cuts “the most significant tax relief for the American people in decades.”
She said the tax package will also give the administration more flexibility to spend on domestic programs like food stamps and Medicaid, which are funded through discretionary funds and are critical to the poor.
The GOP bill would cut corporate tax rates from 35% to 20%, eliminate individual tax rates, and make a $2,000 deduction for charitable contributions.
The plan also provides a new credit of $300 per dependent child for college and career-related expenses.
“The American people are going to get the relief they deserve, and I’m confident they’re going to stand behind it,” White House budget director Mick Mulvaney said in an interview with Fox News.
The Senate has yet to vote on the legislation, but Republican leaders are expected to hold a conference call with Senate Majority Leader Mitch McConnell (R, Ky.) and House Minority Leader Nancy Pelosi (D, Calif.) in the coming days to hash out the details.
Mulvane and other Republicans have argued that the tax cut will boost growth because businesses will spend more, and they say the tax relief will pay for itself.
But Democrats and the left have long criticized Trump for not doing enough to boost the economy, and in the face of opposition from the right, the president has pushed to increase spending on education and infrastructure and to boost Medicare and Social Security benefits.
In an interview on The View on Thursday, Pelosi said she was pleased with the bill.
“We are going forward with this, and it’s the most comprehensive, bold tax relief package we have seen in many years,” she said.
“I’m confident that the American voters will see it in the light of day.”
The House approved the legislation after Republicans passed a spending bill that would have funded all of the government through Sept. 30.
Republicans have previously expressed concerns about the Senate’s proposal to raise $1 billion in emergency spending that would go to help offset the tax break.
They have also expressed concerns that the House’s plan would allow them to cut the government into pieces without having to raise any new taxes.
The tax package is not expected to be included in the final bill because it would require a vote from both chambers of Congress.
It’s unclear when the final legislation will be sent to Trump.
It will also likely not be approved by the Senate, which has been holding its own negotiations over how to replace the Affordable Care Act.