Trump’s Next Crisis
Author: Greg Valliere
April 9, 2025
AS THE TRADE WAR DEEPENS, still another crisis looms for President Trump: the House has bogged down on a budget deal, potentially delaying a tax cut until summer or later, just when the economy would need some stimulus.
AFTER A STRING OF VICTORIES, many by just a handful of votes, House Speaker Mike Johnson has hit the wall. He’s short by at least a dozen votes, with the Easter break just a few days away.
THE HOUSE MEASURE would be the vehicle for the “big, beautiful bill,” as Donald Trump calls it — with an extension of the 2017 tax cuts, a huge increase in defense outlays, and sweeping spending reductions.
BUT HOUSE ULTRA-CONSERVATIVES ARE OPPOSED to the bill. They want deeper spending cuts, and there’s a pervasive sense in the House that the measure would be paid for with an accounting gimmick that doesn’t include the cost of the 2017 tax cut. On the left, there’s strong opposition to steep Medicaid spending cuts.
THUS, IT APPEARS THAT CONGRESS WILL GO HOME for the two-week holiday and return late this month to tackle the issue again. Trump probably will prevail after a nasty fight, but he’s quickly losing political capital.
WE TALKED WITH SEVERAL REPUBLICANS this week who are deeply apprehensive about confronting constituents in town hall meetings during the recess; the voters are angry.
“WE NEVER VOTED FOR THIS,” said one conservative voter, who is stunned by the magnitude of the stock market crash — and blames Trump.
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