Congress
House GOP will hear from Wall Street deficit hawk as lawmakers struggle over tax cut costs
Ray Dalio, a billionaire investor who repeatedly has warned about America’s unsustainable debt trajectory, will brief House Republicans on Tuesday morning, at the invitation of Budget Chair Jodey Arrington (R-Texas).
His appearance comes as Republicans struggle with how to account for the cost of their tax cut plans, with some pushing for an accounting strategy that would zero-out the price tag and others warning that would amount to fiscal fraud.
Just in recent weeks, Dalio, the founder of Bridgewater Associates, has said that America’s debt situation could cause an “economic heart attack” and “shocking developments.”
“It is imperative that members of Congress engage with thought leaders like Mr. Dalio, who have extensive, real-world experience that can help guide us as we work to restore fiscal sanity in Washington before it’s too late,” Arrington said ahead of the briefing.
Dalio’s appearance, planned for after the House GOP conference meeting, comes as congressional Republicans are still hashing out some of the big-picture questions on a huge budget package this year, including how much a potential plan might add to deficits.
One particularly large outstanding question is whether Republicans should use a current policy baseline, which would assert that there is no cost to extending the temporary parts of the 2017 Trump tax cuts that are set to expire at the end of this year.
It’s not clear whether the Senate parliamentarian will allow such an approach in a budget reconciliation measure, which is how Republicans plan to pass their agenda. But it would give the GOP more headroom than the traditional current law baseline, which would hold that keeping the expiring provisions would cost $4 trillion or more over a decade.
The budget resolution that passed the House last month uses the current law approach.
Some House deficit hawks haven’t held back in knocking the current policy baseline — and just within recent days, a CBO analysis requested by Rep. David Schweikert (R-Ariz.) found that the federal debt would soar if the tax provisions were extended without being offset.
Todd Blanche picked up an important GOP vote Tuesday for his nomination as attorney general — Sen. John Curtis of Utah — likely leaving him just one vote shy of securing confirmation.
Curtis said in a statement he plans to “support” Blanche and was pleased with the nominee’s “receptivity and understanding” of issues raised, including ending the “Anti-Weaponization Fund” created under a May settlement Blanche brokered between the IRS and President Donald Trump.
The announcement came moments after the Senate Judiciary Committee voted on party lines to advance Blanche’s nomination to the full Senate.
Crucial to that vote was Blanche agreeing in writing that the $1.8 billion payout fund was nullified and that another aspect of the settlement — an IRS audit immunity agreement — was scaled back. That gave GOP Sens. John Cornyn of Texas and Thom Tillis of North Carolina enough comfort to vote for Blanche.
The remaining undecided Republican senators are Sen. Bill Cassidy of Louisiana, Sen. Susan Collins of Maine and Sen. Lisa Murkowski of Alaska. All three said Tuesday they are still grappling with their decisions.
“I’m still considering everything,” Collins said. “I watched part of the markup this morning to hear some of the statements, but I don’t have any decision to share with you right now.”
Murkowski declined to say how she would vote, and Cassidy told reporters that he had “nothing about Todd Blanche” to say.
Cornyn said he has already spoken with Collins and Murkowski and that additional conversations are expected.
“Senator Collins, she’s one of the most diligent individuals I know, certainly here in the United States Senate, and we had a good conversation.” Cornyn said. “She’ll have to speak for herself as to her ultimate conclusion. And I’ve also been exchanging messages with Senator Murkowski, and I know we’ll have further conversations about this.”
Jordain Carney and Calen Razor contributed to this report.
Democrats on the Budget Committee were frustrated by Sen. Ron Johnson’s (R-Wis.) first turn with the gavel after the new chair rebutted each of their remarks.
“Welcome to the chairmanship, but I find you are turning this into a debate committee and not a budget committee,” Sen. Patty Murray (D-Wash.) said during the Tuesday hearing on Medicaid.
Johnson, who took over chair after the unexpected passing of Sen. Lindsey Graham (R-S.C.) last month, fact checked Democrats on the committee after their allotted question time, which got on the nerves of his colleagues.
Ranking Member Jeff Merkley (D-Ore.) said near the end of the hearing that rebuttals by the chair aren’t “customary.”
Johnson, a frequent critic of the Medicaid program, defended his approach, which he said makes the hearings more “informative.” He sparred with Democrats on Tuesday over the impact of Medicaid cuts included in the 2025 One Big Beautiful Bill Act, as well as Medicaid fraud and spending growth.
“I keep my comments pretty short,” he said. “There are important points to be made, and I will continue to do that. I hope it doesn’t offend my Democratic colleagues, but that will be my contention here.”
Rep. Max Miller, facing allegations of domestic abuse from his ex-wife, said he would ask the House Ethics Committee to investigate the claims in an attempt to clear his name.
“In light of all the renewed interest in my family affairs I am going to file my own paperwork for an ethics investigation into myself to clear my name from these horrific attacks on myself and family,” the Ohio Republican said in an X post. “I have absolutely nothing to hide.”
Miller is facing calls to resign after GOP Sen. Bernie Moreno, the father of Miller’s ex-wife Emily Moreno, said he should not serve in the House and should “seek professional help.”
Miller has denied allegations of domestic abuse from Emily Moreno. He attempted to defend himself Sunday in a livestreamed monologue and by publishing a trove of documents related to the divorce. Those documents included an “intimate image” of their daughter, which Miller’s lawyer Aaron Minc said he uploaded by mistake.
A spokesperson for Emily Moreno did not immediately respond to a request for comment on Miller’s request for a House Ethics investigation. A committee spokesperson also did not immediately respond.
Miller said he would provide the panel with “all necessary documents needed for a detail examination.” It is unlikely the committee, which historically works slowly, would make any assessment ahead of the November midterm election where he is facing a strong Democratic challenger.
“The accusations continue to change, but my facts stay the same,” Miller said. “I am looking forward to my colleagues reading everything for themselves.”
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