The US Budget deficit has hit a record $840 billion (all time high) over the past four months, and the house Republicans have just proposed a $4 trillion debt limit increase in response

House Republicans unveiled a budget proposal on Wednesday that aligns with several of President Donald Trump’s key domestic priorities, paving the way for up to $4.5 trillion in tax cuts and a $4 trillion increase in the debt ceiling to ensure the U.S. can continue paying its obligations.

The plan also instructs various House committees to cut at least $1.5 trillion in spending while targeting a $2 trillion reduction over the next decade.

The proposal marks the initial step in a lengthy legislative process, giving Republicans the ability to pass certain priorities with a simple majority vote. The House Budget Committee is expected to vote on the plan Thursday, with House Speaker Mike Johnson expressing confidence that it will easily clear the committee.

“Then, we’ll work with everyone throughout the week to make sure they’re on board,” Johnson said.

Johnson has laid out an aggressive timeline to move the budget resolution and follow-up legislation, but divisions remain within the Republican conference. Some members are pushing for larger tax cuts, while others want deeper spending reductions.

“There will be a lot of back-and-forth negotiations,” Johnson said. “It’s a complex process, but our goal is to deliver on all the president’s campaign promises and full agenda. We’ve got time to make it happen.”

Budget resolutions typically serve as a declaration of priorities. However, the 45-page plan offers specific instructions for House committees to adjust federal funding. GOP leaders are particularly targeting social services like Medicaid to achieve substantial savings.

The Energy and Commerce Committee, which oversees healthcare spending, has been tasked with cutting $880 billion over the next decade. The Education and Workforce Committee is asked to reduce spending by $330 billion, while the Agriculture Committee must save $230 billion. The Transportation and Infrastructure Committee is expected to identify at least $10 billion in cuts by 2034.

Despite these cuts, the proposal reallocates funds to bolster several Trump initiatives. The Armed Services Committee would receive an additional $100 billion in defense spending over the next 10 years, while the Homeland Security Department would get an extra $90 billion to support Trump’s extensive immigration deportation efforts.