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How Mike Johnson rescued Trump's tax agenda from jaws of likely defeat

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How Mike Johnson rescued Trump's tax agenda from jaws of likely defeat

When lawmakers arrived on Capitol Hill last Monday, House GOP leaders’ plans to sync up with the Senate on sweeping legislation to advance President Donald Trump’s agenda seemed an all-but-impossible task.

House fiscal hawks were furious with Senate Republicans for passing an amended version of the former’s budget framework, one that called for a significantly lower amount of mandatory spending cuts than the House’s initial plan.

By late Thursday morning, House Speaker Mike Johnson, R-La., was celebrating victory in front of reporters after a narrow 216-to-214 vote.

“I told you not to doubt us,” a triumphant Johnson told the media. “We’re really grateful to have had the big victory on the floor just now. It was a big one, a very important one.”

HOUSE FREEDOM CAUCUS CHAIR URGES JOHNSON TO CHANGE COURSE ON SENATE VERSION OF TRUMP BUDGET BILL

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Speaker of the House Mike Johnson shakes hands with President Donald Trump onstage at a House Republicans Conference meeting at the Hyatt Regency on Capitol Hill on Nov. 13, 2024 in Washington. (Andrew Harnik/Getty Images)

The hard-fought win came after long hours and late nights as House Republican leaders — and leaders in the Senate GOP as well — worked to persuade holdouts, while Trump and his aides worked those same critics from the sidelines.

White House aides were at House Republicans’ weekly conference meeting on Tuesday, a rare sight but not unexpected, given the importance of the coming vote.

But GOP lawmakers filed out of that meeting doubting whether Trump’s influence could help this time, after he played a key role in helping shepherd earlier critical bills across the finish line this year.

“I don’t see it happening,” a House Republican told Fox News Digital when asked whether Trump would be enough to sway critics.

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Nevertheless, a select group of those holdouts were summoned to the White House alongside House GOP leaders on Wednesday afternoon, hours before the expected vote.

MEET THE TRUMP-PICKED LAWMAKERS GIVING SPEAKER JOHNSON A FULL HOUSE GOP CONFERENCE

Fox News Digital was told that Trump commanded the room for roughly 20 to 30 minutes, and told House conservatives he agreed with them on the need to significantly slash government spending.

Trump also communicated to holdouts that Senate leaders felt the same, but, like the House, were working on their own tight margins, Fox News Digital was told.

The president, meanwhile, has been concerned in particular with the looming debt limit deadline, Fox News Digital was told.

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It’s one of the issues that Republicans are looking to tackle via the budget reconciliation process. By lowering the Senate’s passage threshold from 60 votes to 51, it allows the party controlling the House, Senate and White House to enact broad policy changes via one or two broad pieces of legislation.

Senate Majority Leader John Thune speaks during a news conference following the Senate Republican policy luncheon at the U.S. Capitol in Washington on Tuesday, March 11, 2025. (Al Drago/Bloomberg via Getty Images)

In this case, Republicans are looking for some added funds for border security and defense and to raise the debt ceiling — while paring back spending on the former Biden administration’s green energy policies and in other sections of the federal government, likely including entitlement programs.

GOP lawmakers are also looking to extend Trump’s 2017 Tax Cuts and Jobs Act, the provisions of which expire at the end of this year. They will also need new funding for Trump’s efforts to eliminate taxes on tipped and overtime wages.

But first, Republicans wanted the House and Senate to pass identical frameworks setting the stage for filling those frameworks with actual legislative policy.

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Whereas the House version calls for at least $1.5 trillion in spending cuts, the Senate mandated a floor of $4 billion — a wide gap to bridge.

The Wednesday-afternoon White House meeting did sway some holdouts, but far from enough. 

Senate Majority Leader John Thune, R-S.D., also met with House GOP critics of the bill for more than an hour on Wednesday evening ahead of the planned vote.

“He couldn’t have been more cordial and understanding in talking to us about what we needed to know. And honestly, he had some of the same concerns that we did,” Rep. Tim Burchett, R-Tenn., told Fox News Digital.

“You know, he’s got to get it over the finish line, and he had to make certain commitments. But he committed to us to work with us.”

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Ultimately, however, plans to advance the measure that evening were hastily scrapped as an unrelated vote was held open for over an hour, leading to confusion and frustration on the House floor.

“He looked like he was in no better spot than he was at the beginning,” one House Republican said of that night.

Rep. Tim Burchett speaks with reporters at the U.S. Capitol. (Alex Wong)

Trump was not called to address the group during that huddle with holdouts, two sources in the room told Fox News Digital. 

However, the president did have individual conversations with some holdouts on Wednesday and Thursday, one person said.

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The Wednesday night failure gave way to a late night of negotiations involving both holdouts and House GOP leaders.

Two House GOP leadership aides told Fox News Digital that Johnson had huddled with Majority Leader Steve Scalise, R-La., and House GOP Conference Chairwoman Lisa McClain, R-Mich., until late Wednesday to figure out a path forward.

When they emerged shortly before midnight, they had settled on a plan — a televised promise by Johnson and Thune to put both leaders on the record committing to deep spending cuts.

SENATE GOP PUSHES TRUMP BUDGET FRAMEWORK THROUGH AFTER MARATHON VOTE SERIES

I’m happy to tell you that this morning, I believe we have the votes to finally adopt the budget resolution so we can move forward on President Trump’s very important agenda for the American people,” Johnson said.

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Thune added, “We are aligned with the House in terms of what their budget resolution outlined in terms of savings. The speaker has talked about $1.5 trillion. We have a lot of United States senators who believe in that as a minimum.”

A senior Senate GOP aide argued to Fox News Digital, “Absent Thune’s intervention, Mike Johnson would not have gotten this resolution through the House.”

But the speaker was also putting in his own long hours with holdouts.

Steve Scalise, House majority leader, speaks during Day 2 of the Republican National Convention (RNC), at the Fiserv Forum in Milwaukee on July 16, 2024.  (Reuters/Mike Segar)

The office of Rep. Ralph Norman, R-S.C., who ultimately voted to advance the framework, told Fox News Digital that critics were sent a memo by Johnson early on Thursday, assuring them that he was committed to deep spending cuts.

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“The Senate amendment to H. Con. Res. 14 preserves untouched language from the original House-passed resolution, including the reconciliation instructions to House committees and Section 4001 — Adjustment for spending cuts of at least $2 trillion,” the memo said.

It referred to a measure in the House-passed framework that suggested funding toward tax cuts would be reduced by a corresponding amount if final spending cuts did not equal $2 trillion.

“This language reflects a critical principle — that deficit-increasing provisions of the final reconciliation bill are accompanied by concomitant spending cuts,” it said.

Then, as the vote was called around 10:30 a.m. on Thursday morning, a final huddle between holdouts and leaders sealed the Republicans’ victory.

“At some point, it was heated. And then the speaker’s leadership team [House Majority Whip Tom Emmer, R-Minn.] made sure we were clarified on some issues which are very important to some of the members,” Burchett said.

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“And then Steve Scalise, really batting cleanup, and he came in with the final with the final conclusion, which everybody agreed to pretty much. And then the speaker closed the deal.”

House GOP Conference Chair Lisa McClain leaves a meeting at the Capitol Hill Club on Feb. 28, 2023. (Tom Williams)

Burchett said he believed that Johnson had spoken to Trump separately at some point during that huddle.

A senior House GOP aide said McClain was also present for that meeting.

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Republicans clinched the win minutes after 11 a.m. on Thursday, with the GOP side of the House chamber erupting in applause.

House Freedom Caucus Chairman Andy Harris, R-Md., who helped lead the opposition, told reporters after the vote, “We made tremendous progress over the last two days in making certain that whatever we do on reconciliation, we don’t increase this country’s budget deficit.”

“We take the Moody report from two weeks ago pretty seriously, that you can’t have unpaid-for tax cuts, and we made progress in making, getting assurances both from the Senate and the House leadership that that’s not going to occur,” Harris said.

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Trump plans to meet with Venezuela opposition leader Maria Corina Machado next week

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Trump plans to meet with Venezuela opposition leader Maria Corina Machado next week

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President Donald Trump said on Thursday that he plans to meet with Venezuelan opposition leader Maria Corina Machado in Washington next week.

During an appearance on Fox News’ “Hannity,” Trump was asked if he intends to meet with Machado after the U.S. struck Venezuela and captured its president, Nicolás Maduro.

“Well, I understand she’s coming in next week sometime, and I look forward to saying hello to her,” Trump said.

Venezuelan opposition leader Maria Corina Machado waves a national flag during a protest called by the opposition on the eve of the presidential inauguration, in Caracas on January 9, 2025. (JUAN BARRETO/AFP via Getty Images)

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This will be Trump’s first meeting with Machado, who the U.S. president stated “doesn’t have the support within or the respect within the country” to lead.

According to reports, Trump’s refusal to support Machado was linked to her accepting the 2025 Nobel Peace Prize, which Trump believed he deserved.

But Trump later told NBC News that while he believed Machado should not have won the award, her acceptance of the prize had “nothing to do with my decision” about the prospect of her leading Venezuela.

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California sues Trump administration over ‘baseless and cruel’ freezing of child-care funds

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California sues Trump administration over ‘baseless and cruel’ freezing of child-care funds

California is suing the Trump administration over its “baseless and cruel” decision to freeze $10 billion in federal funding for child care and family assistance allocated to California and four other Democratic-led states, Atty. Gen. Rob Bonta announced Thursday.

The lawsuit was filed jointly by the five states targeted by the freeze — California, New York, Minnesota, Illinois and Colorado — over the Trump administration’s allegations of widespread fraud within their welfare systems. California alone is facing a loss of about $5 billion in funding, including $1.4 billion for child-care programs.

The lawsuit alleges that the freeze is based on unfounded claims of fraud and infringes on Congress’ spending power as enshrined in the U.S. Constitution. The White House did not immediately respond to a request for comment.

“This is just the latest example of Trump’s willingness to throw vulnerable children, vulnerable families and seniors under the bus if he thinks it will advance his vendetta against California and Democratic-led states,” Bonta said at a Thursday evening news conference.

The $10-billion funding freeze follows the administration’s decision to freeze $185 million in child-care funds to Minnesota, where federal officials allege that as much as half of the roughly $18 billion paid to 14 state-run programs since 2018 may have been fraudulent. Amid the fallout, Gov. Tim Walz has ordered a third-party audit and announced that he will not seek a third term.

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Bonta said that letters sent by the U.S. Department of Health and Human Services announcing the freeze Tuesday provided no evidence to back up claims of widespread fraud and misuse of taxpayer dollars in California. The freeze applies to the Temporary Assistance for Needy Families program, the Social Services Block Grant program and the Child Care and Development Fund.

“This is funding that California parents count on to get the safe and reliable child care they need so that they can go to work and provide for their families,” he said. “It’s funding that helps families on the brink of homelessness keep roofs over their heads.”

Bonta also raised concerns regarding Health and Human Services’ request that California turn over all documents associated with the state’s implementation of the three programs. This requires the state to share personally identifiable information about program participants, a move Bonta called “deeply concerning and also deeply questionable.”

“The administration doesn’t have the authority to override the established, lawful process our states have already gone through to submit plans and receive approval for these funds,” Bonta said. “It doesn’t have the authority to override the U.S. Constitution and trample Congress’ power of the purse.”

The lawsuit was filed in federal court in Manhattan and marked the 53rd suit California had filed against the Trump administration since the president’s inauguration last January. It asks the court to block the funding freeze and the administration’s sweeping demands for documents and data.

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Video: Trump Says ‘Only Time Will Tell’ How Long U.S. Controls Venezuela

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Video: Trump Says ‘Only Time Will Tell’ How Long U.S. Controls Venezuela

new video loaded: Trump Says ‘Only Time Will Tell’ How Long U.S. Controls Venezuela

transcript

transcript

Trump Says ‘Only Time Will Tell’ How Long U.S. Controls Venezuela

President Trump did not say exactly how long the the United states would control Venezuela, but said that it could last years.

“How Long do you think you’ll be running Venezuela?” “Only time will tell. Like three months. six months, a year, longer?” “I would say much longer than that.” “Much longer, and, and —” “We have to rebuild. You have to rebuild the country, and we will rebuild it in a very profitable way. We’re going to be using oil, and we’re going to be taking oil. We’re getting oil prices down, and we’re going to be giving money to Venezuela, which they desperately need. I would love to go, yeah. I think at some point, it will be safe.” “What would trigger a decision to send ground troops into Venezuela?” “I wouldn’t want to tell you that because I can’t, I can’t give up information like that to a reporter. As good as you may be, I just can’t talk about that.” “Would you do it if you couldn’t get at the oil? Would you do it —” “If they’re treating us with great respect. As you know, we’re getting along very well with the administration that is there right now.” “Have you spoken to Delcy Rodríguez?” “I don’t want to comment on that, but Marco speaks to her all the time.”

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President Trump did not say exactly how long the the United states would control Venezuela, but said that it could last years.

January 8, 2026

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