Trump budget exposes GOP divisions

View Online Evening Report Friday, May 2 | By Jonathan Easley ©  Mike Stewart, Associated Press GOP divided over defense spending, Medicaid cuts, tax deductions PRESIDENT TRUMP SENT the first budget request of his second term to Republican appropriators in Congress on Friday, exposing new GOP divisions on spending.   Office of Management Budget director Russell Vought outlined the steep cuts Trump seeks for non-defense spending in a letter to Senate Appropriations Committee Chair Susan Collins (R-Maine).   "This is a pretty historic effort to deal with the bureaucracy," Vought told reporters on Friday.   The White House's "skinny budget" is the administration's wish list for how they'd like congressional appropriators to proceed, although it's up to lawmakers what goes in the final bill.   Defense spending emerged as an early point of division between congressional Republicans and the White House.   Vought said the White House wants to increase Defense spending by 13 percent, bringing it up to $1.01 trillion. However, the proposal he sent to Congress keeps Defense spending flat at $893 billion with the hopes of boosting it later through a reconciliation bill.   The Hill's Alexander Bolton explains the discrepancy:    "Critics on Capitol Hill argued the Office of Management and Budget plans to meet that target by pulling $119 billion from the pot of money expected to be included for defense in the budget reconciliation bill — the package that will extend the 2017 tax cuts and provide $175 billion for border security."   Sen. Roger Wicker (R-Miss.), the chair of the Armed Services Committee, blasted the proposal as insufficient.   "President Trump successfully campaigned on a Peace Through Strength agenda, but his advisers at the Office of Management and Budget were apparently not listening," Wicker said in a statement, arguing that "leaving military spending flat" is "a cut in real terms."   "This budget would decrease President Trump's military options and his negotiating leverage," Wicker said.   Sen. Mitch McConnell (R-Ky.) called the proposal's reliance on "a one-time influx" from reconciliation spending an "accounting gimmick."   "They won't fool Congress," McConnell said. "The correct response to the most dangerous threats to U.S. interests in decades is not a fifth straight budget request that proposes a real-dollar cut to the U.S. military."   Collins said she has "serious objections" to the proposed defense spending and other parts of the budget, including proposed cuts to a low-income home energy program, student services programs and biomedical research.   "Ultimately, it is Congress that holds the power of the purse," she said in a statement. MORE BATTLES LIE AHEAD The divisions underscore the difficult task that lays ahead for GOP leaders in Congress, who must wrap Trump's agenda into "one big, beautiful bill" that can overcome intraparty divisions and get past narrow majorities in both chambers.   Republicans are trying to cut taxes, lower the deficit and reduce spending, all without opening themselves up to political attacks over cuts to social safety net programs.   The House Energy and Commerce Committee delayed a key vote on its portion of Trump's legislative priorities this week amid disagreements among Republicans over potential cuts to Medicaid.   The debate pits moderate Republicans in swing districts against conservatives in deep red parts of the country. Democrats are ready to pounce on the issue in the midterm elections.   And Republicans in high-tax states say they won't vote for any funding bill that doesn't increase the cap on the state and local tax (SALT) deduction.   More highlights from Trump's budget proposal:   • It would reduce nondefense discretionary spending by $163 billion, or 22.6 percent, with tens of billions shaved from the National Institutes of Health and Housing and Urban Development.   • It would eliminate some development and international affairs agencies beyond the U.S. Agency for International Development (USAID).   • The budget would make steep cuts to some Education Department programs, including those for the Office of Civil Rights and preschool funding, while boosting spending on charter schools.   • The White House proposed shuttering the disinformation offices and programs at the Cybersecurity and Infrastructure Agency, alleging they censored Trump and his supporters.   Read the full budget request here. 💡Perspectives: • JD Vance: What Trump accomplished in his first 100 days. • The Liberal Patriot: The DOGE days are not quite over. • Whole Hog Politics: How Trump misspent his political capital. • The Hill: Trump's first 100 daze. • CNN: Rubio ascends in Trump's orbit. Read more:  • Waltz confirmation will be an 'in-depth look at Signalgate'. • 11 top contenders to replace Waltz as national security adviser. • Senate Democrats lament missed chance after tariff vote tumult. • GOP senators wonder about Hegseth's future. • Greene furious over Ukraine minerals deal, Iran talks: 'The base is not happy.' CATCH UP QUICK Tennessee law enforcement released video showing a 2022 traffic stop involving Kilmar Abrego Garcia. The administration says the encounter bolsters their claim that Abrego Garcia is a member of MS-13 and was involved in human trafficking.   The Justice Department reached a "settlement in principle" with Capitol rioter Ashli Babbitt's family to resolve a lawsuit they filed over her death on Jan. 6, 2021. The Trump administration asked the Supreme Court to end deportation protections for more than 600,000 Venezuelans. NEWS THIS AFTERNOON ©  AP Photo/Peter Morgan Stocks jump on jobs data; China optimism The U.S. added more jobs than expected in April, a sign the labor market remains sturdy even as executives warn about fallout from tariffs.   Markets jumped Friday after the Labor Department announced the U.S. economy added 177,000 jobs against an expected 130,000. The jobless rate remained steady at 4.2 percent.   A new report from outplacement firm Challenger, Gray and Christmas found that nearly half of all layoffs in 2025 have been the result of the Department of Government Efficiency's (DOGE) efforts to slash the federal workforce.   The White House trumpeted the jobs "boom," a day after President Trump and Vice President Vance said former President Biden is responsible for the current state of the economy.   "This is the second month in a row where the jobs report has beat expectations," press secretary Karoline Leavitt said. "Wages are continuing to rise and labor force participation is increasing. This is exactly what we want to see. More Americans working for higher wages. More winning is on the way!"   The markets were also buoyed by a statement from the Chinese government signaling an openness to trade talks, saying "the door is open."   "China has noticed that the senior leadership of the United States has repeatedly stated that it is willing to negotiate with China on tariff issues," a spokesperson for the Chinese Ministry of Commerce said Friday.   "At the same time, the United States has recently taken the initiative to convey information to China through relevant parties, hoping to talk to China. In this regard, China is evaluating it."   Still, executives are warning that tariffs will cut into their profits.   Apple CEO Tim Cook said on an earnings call that the tariffs could torpedo Apple's second quarter profits.   "For the June quarter, currently we are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter," he said.   "However, for some color, assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs."   Also on Friday, the U.S. closed the so-called de minimis loophole that allowed companies to ship cheap goods into the U.S. while skirting import fees. Chinese companies, such as clothing giant Temu, feasted on the exemption.   The White House accused China of "deceptive shipping practices" as part of an effort to exploit the loophole. Going forward, Chinese parcels worth less than $800 will be subject to a fee, on top of the existing 145 percent tariffs on Chinese goods.   MEANWHILE…   Canadian Prime Minister Mark Carney will meet with Trump in Washington on Tuesday amid the trade war and the president's expressed desire to annex Canada.   Carney, who is fresh off an election victory, has responded to Trump's threats with his own tough talk.   "President Trump is trying to break us so he can own us," Carney said in his election victory speech. "That will never happen."   Despite the recent back-and-forth, Trump this week said he called Carney to congratulate him, saying "he couldn't have been nicer."   "He's a very nice gentleman," Trump said. 💡Perspectives: • The Atlantic: Something alarming is happening to the job market. • Wired: Trump's quest for crypto riches is a scandal. • The Wall Street Journal: Trump invests in Ukraine's future. • Responsible Statecraft: Minerals deal is a tactical win, not a turning point. Read more:  • Trump switches up economic message as voters, markets tremble. • How Musk's White House role evolved in 100 days. ON TAP Here's who's talking Sunday...   NewsNation's "The Hill Sunday": Rep. Don Bacon (R-Neb.)   NBC's "Meet the Press": President Trump.   Fox News' "Fox News Sunday": Reps. Jodey Arrington (R-Texas), Jason Smith (R-Mo.) and Jim Himes (D-Conn.); Democratic National Committee Chairman Ken Martin.   CBS's "Face the Nation": Sen. Tammy Duckworth (D-Ill.); Rep. Mike Turner (R-Ohio); Oksana Markarova, Ukraine Ambassador to United States; Ret. Gen. H.R. McMaster, Former Trump National Security Council Advisor IN OTHER NEWS ©  AP Photo/Charles Krupa Trump follows through on culture war threats President Trump is following through on his culture war threats, choking off the flow of funds to Harvard University, NPR and PBS in a flurry of moves.   Trump on Friday said over Truth Social that he's taking away Harvard's tax exempt status.   "It's what they deserve!," he said.   The Trump administration and Harvard are already locked in a court battle over $2 billion in frozen funds.   Harvard has made some changes to address campus antisemitism and in changing its diversity, equity and inclusion (DEI) practices. A federal judge on Friday declined to block the enforcement of key provisions in one of Trump's executive orders involving DEI.   Harvard rejected other demands for an overhaul, accusing the Trump administration of seeking control over its curriculum, hiring practices and leadership.   Trump took a shot at Harvard in his commencement address at the University of Alabama on Thursday night.   "The next chapter of the American story will not be written by the Harvard Crimson," he said. "It will be written by you, the Crimson Tide."   MEANWHILE…   The Education Department announced Thursday it would change the college accreditors process to make it easier for new schools to receive federal funding.   "We must foster a competitive marketplace both amongst accreditors and colleges and universities in order to lower college costs and refocus postsecondary education on improving academic and workforce outcomes for students and families," Education Secretary Linda McMahon said.   The Hill's Lexi Lonas-Cochran writes:   "College accreditation is part of the process universities go through in order to receive federal student aid, with an accreditor evaluating everything a school does from class offerings to admission processes…The federal agency is also beginning reviews to add more accreditors to the arena after applications for new accreditors were paused under the Biden administration."   Also on Thursday, Trump signed an executive order prohibiting federal funds from being spent on NPR and PBS, calling their news coverage "biased and partisan."   The executive order, titled "Ending Taxpayer Subsidization of Biased Media," prohibits the Corporation for Public Broadcasting from sending new funds to the outlets and will "cancel existing direct funding to the maximum extent allowed by law."   ELSEWHERE…   The Associated Press obtained detailed Army plans for a massive military parade to take place in Washington on Trump's birthday in June, which would include some 6,600 soldiers, 150 vehicles, 50 helicopters and seven bands. 💡Perspectives: • The Hill: US dietary guidelines have made us ill. • New York: Pritzker's total-war message is a hit among angry Democrats. • Vox: The Trump-approved policy that's actually good for kids. • Washington Examiner: Democrats must stop abetting illegal immigration. Read more:  • Trump taps Dr. Phil for Religious Liberty Commission. • Trump takes 100-day victory lap at University of Alabama. Stay Engaged Someone forward this newsletter to you? Sign up to get your own copy: TheHill.com/Evening. Did I miss a story? Drop me a line. See you next time! Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  Sign Up for Other Newsletters 400 N Capitol Street NW Suite 650, Washington, DC 20001 © 1998 - 2025 Nexstar Media Inc. | All Rights Reserved.

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