
Republican Rep. Scott Perry of Pennsylvania, former chair of the House Freedom Caucus (HFC), is calling on the Senate to make steeper spending cuts in President Donald Trumpâs âone big, beautiful bill.â
Perry, one of the fiscal hawks who had pushed for more aggressive reforms to the vast tax and spending bill up into the final hours of its House passage early Thursday morning, believes the bill âhas a long way to goâ before it reaches the presidentâs desk. He is urging the Senate to pursue additional spending reduction in light of the bond marketâs recent unease about persistent high budget deficits, and is optimistic from what he is hearing from across the Capitol thus far.
âTypically, the bill gets weaker in the Senate,â Perry told the Daily Caller News Foundation in an interview Friday. âWe feel that thereâs an opportunity for the bill to get stronger.â
âAs a proud Republican and House member and member of the Freedom Caucus itâs not my first inclination to quote Sen. Lindsey Graham, but Sen. Graham said just yesterday, âYouâre talking about one and a half percent, so letâs not act like weâre really cutting a lot .â I completely agree with him.â
Graham, the top Republican on the Senate Budget Committee, appeared to dismiss a question from CNNâs Manu Raju on Thursday about the House Freedom Caucus urging GOP senators not to weaken the spending cuts in the bill.
âYou had your chance,â Graham told Raju with a laugh. âSome of these cuts are not real. And weâre talking about over a decade â if you do a 1.5 trillion â thatâs like a percent-and-a-half. So letâs donât get high on our horse here that weâve somehow made some major advancement in reducing spending because we didnât.â
Perry readily concedes that he wishes the House-passed bill did more to achieve steeper spending reduction, but credited the House Freedom Caucus for pushing House GOP leadership to lock in more than $1.5 trillion in spending cuts over a ten-year period.
An initial proposal floated during House Republicansâ member retreat in Doral, Florida, in February outlined just $300 billion in savings.
âWe have a long way to go,â Perry said. âBut youâve got to remember where we started.â
âThat is five times higher because of our efforts,â Perry added.
He also cited a host of conservative wins that HFC members helped secure in final amendments to the legislation, such as accelerating the implementation of Medicaid work requirements, disincentivizing Medicaid expansion in some states and fast-tracking the phaseout of green energy tax breaks.
The presidentâs sprawling domestic policy bill is now under consideration in the Senate following its passage in the House by just one vote early Thursday morning â after HFC members suppliedthe necessary votes to back the bill. HFC chair Andy Harris of Maryland was the lone GOP lawmaker to vote âpresent.â Two Republicans joined all Democrats in voting against the bill.
âWe still think we have work to do, but we want to advance the agenda,â Perry said. âWe want the tax cuts to happen. We need to deal with the debt ceiling. But we also need to deal with the spending in Washington.â
âThis is the first swing,â Perry said. âI think that we not only can be optimistic, but I think we need to be aggressive, in kind of pushing them right, holding them up and encouraging them to stick with their own commitment to themselves.â
Perryâs calls for more aggressive spending cuts in the presidentâs sweeping bill will have some natural allies in the Senate. Republican Wisconsin Sen. Ron Johnson, who is calling for a return to pre-pandemic spending levels, said he would oppose the House-drafted bill, citing the lack of spending reduction.
âEverybody likes the tax cut, but when youâre $37 trillion in debt on the path to over $60 trillion in debt, when the Social Security Trust Fund is running out, somebodyâs got to be the dad that says, âI know everybody wants to go to Disney World, but we just canât afford it,ââ Johnson told reporters Thursday. âI guess thatâs whatâs going to have to happen here in the Senate.â
Republican Utah Sen. Mike Lee has championed a full repeal of green energy tax credits signed into law by former President Joe Biden. Perry is urging the upper chamber to eliminate even more subsidies under the Biden-era Inflation Reduction Act (IRA) and resist pressure from lobbyists to roll back certain phase-out dates of green energy tax breaks in the House-drafted bill.
âEvery single Republican voted against it when it came to the floor, every single one,â Perry reflected. âThe American people expect all those Republicans to honor that commitment at that time and not change allegiances and alliances after the fact.â
âFrom my standpoint, I donât really care about the army of lobbyists and the few billionaires that are advocating for this policy,â Perry continued. âWe have to do right by our people that get up in the morning and go to work and expect to come home and turn the lights on.â
Republican North Dakota Sen. Kevin Cramer told reporters Thursday that no GOP senator âgives a shit about SALT,â referring to the state and local tax deduction cap. House Republicans raised the SALT deduction cap to $40,000 â four times the current $10,000 limit â with certain income limitations to appease blue-state House Republicans whose constituents face high tax burdens.
The prospect of the Senate significantly lowering the SALT deduction cap is music to Perryâs ears. He told the DCNF that the Senate should absolutely reconsider the SALT cap raise in the House-drafted bill, arguing the deduction primarily benefits wealthy people in blue states and lets elected Democrats off the hook for keeping state and local taxes high.
âThe people that I work for, my bosses, donât feel like paying for the high taxes in California, New York and Illinois,â Perry said.
Perry said that Moodyâs recent downgrade of the U.S. governmentâs credit rating and fears in the bond market about perpetual high budget deficits could heighten his colleagueâs urgency to pursue steeper spending cuts than those incorporated in the House-drafted bill.
âWhat the United States does financially affects the entire globe, and if we donât want to put the entire globe into a financial tailspin, just a few turns of the dial here can make a huge difference, and thatâs what weâre going to continue to press for,â Perry told the DCNF. âWeâre going to be very aggressive with that push.â
Senate Majority Leader John Thune has floated passing the tax and spending package by July 4. The legislation would then have to be voted on in the House for a second time before being signed into law by Trump â assuming the Senate makes modifications to the bill.
House Speaker Mike Johnson has urged the Senate to make minimal modifications to the House-passed legislation, citing the âdelicate equilibriumâ reached between conservatives and moderates to advance the presidentâs landmark bill.
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