GOP Unleashes $1 Trillion Deficit Axe: Trump Era Policies Return

Paul Riverbank, 1/14/2026GOP unveils $1T deficit-cut plan targeting health, energy, and immigration amid high-stakes House drama.

The plan Republicans are championing is sprawling, but health care is the canvas they’ve chosen for their boldest strokes. Departing from the approach of shuttling subsidies through insurance companies, they propose directly channeling funds into Americans’ Health Savings Accounts—a shift touted as empowering “ownership” and eliminating red tape. Remaining in play are measures from the Trump era, especially drug pricing adjustments designed, on paper, to keep medicines within reach as costs balloon nationwide.

Energy, meanwhile, still occupies a familiar lane. Republicans, including Rep. Stephanie Bice of Oklahoma, talk about cementing the freewheeling regulatory style of the previous administration. “We can’t aim for American growth,” Bice warned, “if we smother it in red tape.” Their answer: anchor Trump-era deregulation in law, roll back restrictions on oil and gas, and, they say, provide budget relief for ordinary households hemmed in by high utility bills.

Then, an unexpected twist: Republicans have floated a fresh tax, this time targeting lawsuit settlements involving oil and gas firms. According to their estimates, this could mean an extra $27 billion for the Treasury. Proponents suggest this will curb “frivolous” litigation and keep the wheels of the energy sector well-oiled—whether that will play out as advertised, of course, is anyone’s guess.

The proposal doesn’t skirt around polarizing debates, either. It would draw a line through federal funds sent to states and cities that issue driver's licenses or extend health care to undocumented immigrants—an idea expected to save more than $76 billion, by Republican math. The bill would also cordon off certain government programs—like the Low-Income Housing Tax Credit and Medicaid—from those who are undocumented, demarcating clear boundaries that some in the party see as essential, others as incendiary.

On the homefront, there’s one more pitch to families anxious about the surging housing market: “Home Savings Accounts.” With these, Americans could set aside tax-free money to save for home purchases, a move that supporters argue will smooth the often-turbulent path to home ownership.

Yet with all these ideas pinned to the bulletin board, Capitol Hill’s political arithmetic looms large. House Majority Leader Steve Scalise didn’t mince words about the razor-thin margin his party faces: “With a one-seat majority, everyone has to fall in line. Otherwise, you can draft the prettiest plan in the world, but it won’t matter.” The memory of recent resignations and the mourning for a departed colleague hung heavy over his remarks—a reminder that numbers are more than an abstraction, they are the line between success and spinning wheels.

Not everyone in Republican circles is ready to charge ahead. Veteran Senator John Thune, typically cautious, signaled hesitation about ramming the whole package through reconciliation. There’s talk—somewhat humorously so—of using artificial intelligence to game out Senate rules, a sign of just how convoluted the legislative battlefield has become.

Across the aisle, opposition was instantaneous. Democratic Senator Ron Wyden bristled, accusing the GOP blueprint of gutting critical programs like Medicaid and food assistance, all while cutting taxes for corporate behemoths. Republicans counter, arguing the proposal is a return to “kitchen-table economics”—aimed at the pocketbooks of ordinary voters, not just the bottom lines of big business. Pfluger, for his part, signaled there’s room for haggling down the line: “We’re only just getting started on which bills will make the cut.”

Speaker Mike Johnson struck a resilient note, acknowledging the odds, but vowing to keep pressing forward. “We’re not giving up yet,” he said, a hint of fatigue mixing with resolve.

In the end, this package isn’t just policy; it’s a crucible pressing lawmakers to choose between party cohesion and ideological purity. With control of the House hanging by a thread, and midterms on the horizon, even one stray vote could tip the balance. Pfluger summed up the stakes—somewhat bluntly, yet with a wink at the gravity beneath: “To let this slip would be political malpractice.” After all, in D.C., ideas are currency but passage is king, and the coming weeks will test whether this bill is headed for the lawbooks, or just another folder in a crowded file.

House Republicans stepped into the spotlight this week, rolling out what they’re now calling their “second big, beautiful bill”—their phrase, not anyone else’s. The allure this time: a headline promise of slicing $1 trillion from the federal deficit. Cameras crammed into the Capitol, ears perked to hear Rep. August Pfluger, the Texan who has become the chief face of this blueprint. Pfluger spoke plainly, stacking a pile of daily frustrations on the table: “Rising prices,” he declared, “are what this November is all about.”The plan Republicans are championing is sprawling, but health care is the canvas they’ve chosen for their boldest strokes. Departing from the approach of shuttling subsidies through insurance companies, they propose directly channeling funds into Americans’ Health Savings Accounts—a shift touted as empowering “ownership” and eliminating red tape. Remaining in play are measures from the Trump era, especially drug pricing adjustments designed, on paper, to keep medicines within reach as costs balloon nationwide.Energy, meanwhile, still occupies a familiar lane. Republicans, including Rep. Stephanie Bice of Oklahoma, talk about cementing the freewheeling regulatory style of the previous administration. “We can’t aim for American growth,” Bice warned, “if we smother it in red tape.” Their answer: anchor Trump-era deregulation in law, roll back restrictions on oil and gas, and, they say, provide budget relief for ordinary households hemmed in by high utility bills.Then, an unexpected twist: Republicans have floated a fresh tax, this time targeting lawsuit settlements involving oil and gas firms. According to their estimates, this could mean an extra $27 billion for the Treasury. Proponents suggest this will curb “frivolous” litigation and keep the wheels of the energy sector well-oiled—whether that will play out as advertised, of course, is anyone’s guess.The proposal doesn’t skirt around polarizing debates, either. It would draw a line through federal funds sent to states and cities that issue driver's licenses or extend health care to undocumented immigrants—an idea expected to save more than $76 billion, by Republican math. The bill would also cordon off certain government programs—like the Low-Income Housing Tax Credit and Medicaid—from those who are undocumented, demarcating clear boundaries that some in the party see as essential, others as incendiary.On the homefront, there’s one more pitch to families anxious about the surging housing market: “Home Savings Accounts.” With these, Americans could set aside tax-free money to save for home purchases, a move that supporters argue will smooth the often-turbulent path to home ownership.Yet with all these ideas pinned to the bulletin board, Capitol Hill’s political arithmetic looms large. House Majority Leader Steve Scalise didn’t mince words about the razor-thin margin his party faces: “With a one-seat majority, everyone has to fall in line. Otherwise, you can draft the prettiest plan in the world, but it won’t matter.” The memory of recent resignations and the mourning for a departed colleague hung heavy over his remarks—a reminder that numbers are more than an abstraction, they are the line between success and spinning wheels.Not everyone in Republican circles is ready to charge ahead. Veteran Senator John Thune, typically cautious, signaled hesitation about ramming the whole package through reconciliation. There’s talk—somewhat humorously so—of using artificial intelligence to game out Senate rules, a sign of just how convoluted the legislative battlefield has become.Across the aisle, opposition was instantaneous. Democratic Senator Ron Wyden bristled, accusing the GOP blueprint of gutting critical programs like Medicaid and food assistance, all while cutting taxes for corporate behemoths. Republicans counter, arguing the proposal is a return to “kitchen-table economics”—aimed at the pocketbooks of ordinary voters, not just the bottom lines of big business. Pfluger, for his part, signaled there’s room for haggling down the line: “We’re only just getting started on which bills will make the cut.”Speaker Mike Johnson struck a resilient note, acknowledging the odds, but vowing to keep pressing forward. “We’re not giving up yet,” he said, a hint of fatigue mixing with resolve.In the end, this package isn’t just policy; it’s a crucible pressing lawmakers to choose between party cohesion and ideological purity. With control of the House hanging by a thread, and midterms on the horizon, even one stray vote could tip the balance. Pfluger summed up the stakes—somewhat bluntly, yet with a wink at the gravity beneath: “To let this slip would be political malpractice.” After all, in D.C., ideas are currency but passage is king, and the coming weeks will test whether this bill is headed for the lawbooks, or just another folder in a crowded file.