Meanwhile, President Donald Trump’s top priority is extending his 2017 tax cuts for the next ten years, which the nonpartisan Congressional Budget Office (CBO) estimates would add $4.6 trillion to the deficit. If he actually enacted the other tax cuts he promised on the campaign trail—including on tips, overtime, and Social Security payments—that deficit jumps closer to $11 trillion. During the campaign, he insisted that the tariffs he promised to levy would make foreign countries make up the money lost by the tax cuts. In addition to being wildly wishful thinking, Trump’s claim ignores the fact that tariffs are actually paid by U.S. consumers.
So Trump and the Republicans have a math problem. It was always incorrect to say it was the Democrats who were irresponsibly running up the debt, but it was a powerful myth, and Republicans have relied on it for at least 25 years. Now, though, there is a mechanical issue that belies that rhetoric: the debt ceiling, which requires Congress to raise the ceiling on the amount the Treasury can borrow.
On January 21, 2025, the U.S. Treasury had to begin using extraordinary measures to pay the debt obligations Congress has authorized. In order for Trump and the Republicans to get their tax cuts, that debt ceiling will have to be raised. But a number of MAGA Republicans are already furious at the growing debt and the budget deficits that feed it, and they say they will not raise that ceiling unless there are extreme cuts to the federal budget. Other Republicans realize that the cuts they are demanding will be enormously unpopular, not least because for all their rhetoric, it is actually Republican-dominated districts that receive the bulk of federal monies.
This is the mess that sits behind unelected billionaire Elon Musk’s “Department of Government Efficiency” (DOGE) that is claiming to slash federal spending, although its claims have been so thoroughly debunked that early this morning it quietly deleted all five of the five-biggest ticket items it had touted on its “wall of receipts.”
As Democrats keep pointing out, Republicans have control of the government and could make any cuts they wanted through the normal course of legislation, but they are not doing so because they know those programs are popular. Instead, they are turning the project over to Musk.
They are making it a point to look the other way when people, including judges, ask under what authorization Musk and his team are operating. Today, once again, White House press secretary Karoline Leavitt refused to say who was in charge of DOGE, a day after Matt Bai reported in the Washington Post that two of Musk’s DOGE employees, Luke Farritor and Gavin Kliger, used their access to payment systems to override explicit orders from Secretary of State Marco Rubio and shut off funding to the United States Agency for International Development. Bai reports that Farritor is 23-year-old dropout from the University of Nebraska who interned at SpaceX; Kliger, 25, spreads conspiracy theories about the “deep state,” attended Berkeley, and is now installed at the Treasury Department.
This afternoon the White House said that Amy Gleason, a former official at the U.S. Digital Service, the agency that Trump’s executive order may have turned into the Department of Government Efficiency, is serving as the acting administrator of DOGE. Reporters reached her by phone in Mexico.
In an interview with NPR, the U.S. ambassador to Hungary under President Joe Biden, David Pressman, explained that Hungarian prime minister Viktor Orbán turned Hungary’s democracy into “a system that’s designed to enrich a clique of elites to take public assets and put them in private pockets while talking about standing up for conservative values” in what became “a massive transfer of public assets to an oligarch class.” Trump and MAGAs see Orbán as a model, and it is notable that today the Federal Aviation Administration (FAA), the agency that manages civilian aviation and that Trump and DOGE gutted, announced it has agreed to use Musk’s Starlink internet system for its information technology networks.
But even if Musk is only providing the illusion of savings, Congress still has to figure out the budget. On Friday, the Senate voted 52–48 to advance a budget resolution that called for $175 billion in new funding for border security and immigration enforcement and told committees, including the committee that oversees Medicaid, to find at least $4 billion in spending cuts. All Democrats and Independents, along with Republican Rand Paul of Kentucky, voted not to advance that resolution.
Today the House was supposed to vote on its own budget resolution, and it is here that the stark contrast Buttigieg identified shows most strongly. The House resolution calls for cutting $4.5 trillion in taxes, primarily for the wealthy and corporations, while also adding $100 billion for immigration and border security, $90 billion for Homeland Security, and $100 billion in military spending. It enables those cuts and spending, at least in the short term, by raising the debt ceiling by $4 trillion.
The plan offsets those tax cuts with a goal of $2 trillion in spending cuts, including $880 billion over the next decade in cuts to the part of the budget that covers Medicare and Medicaid, and $230 billion in cuts to the part of the budget that covers the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps. House speaker Mike Johnson claimed that all the cuts would come from the same place Musk claims, without evidence, to be cutting: “fraud, waste, and abuse.”
As Buttigieg noted, this budget cuts benefits for the poorest Americans in order to give tax cuts to the wealthiest, but the proposed cuts are not enough to get all MAGAs, many of whom want far more draconian cuts, on board. Johnson needed either to corral them or to get Democratic votes.
For their part, the Democrats rejected the proposal, concerned about the concentration of wealth in the U.S.: on Sunday, economist Robert Reich noted that “[t]he top 0.1% of Americans control $22 trillion in wealth,” while “[t]he bottom 50% control $3.8 trillion in wealth.”
Shauneen Miranda of the New Jersey Monitor reported the statement of Senator Chris Murphy (D-CT) today that 24% of Americans get their healthcare from Medicaid, while the Centers for Medicare and Medicaid Services say that two thirds of nursing home patients receive Medicaid. Cuts would devastate American families. “For what, because Elon Musk needs another billion dollars?” Murphy asked. “The scope of this greed is something that we have never, ever seen before in this country, and we should not accept it as normal in the United States of America.”
At a press conference, House Democrats called out what Representative Greg Casar (D-TX) called “this billionaire budget resolution.” “I know that I and my colleagues here today are ready to go to the mat and fight all the way until we stop this budget and finally demand that, instead of a tax break for greedy billionaires, that we actually tax those greedy billionaires and expand the programs that working people deserve,” Casar said. It took pressure from Trump to get the House resolution across the line this evening. It ultimately passed by a vote of 217 to 215, with only one Republican, Representative Thomas Massie (R-KY), voting with all the Democrats against it. Earlier this year, Republicans killed a bipartisan push to enable representatives to vote remotely while on maternity leave, so Representative Brittany Pettersen (D-CO) flew across the country with her one-month-old son to “vote NO on this disastrous budget proposal.”