White House Office of Management and Budget (OMB) Director Russell Vought on Wednesday testified before the House Budget Committee, sparred with Democrats over spending cuts proposed or enacted by the Trump administration and faced questions about the growing cost of the war with Iran.
The annual hearing followed the Trump administration's unveiling of its proposed budget for fiscal 2027, which included a 40 percent increase to defense spending and a 10 percent cut to nondefense spending. Vought is set to appear before the Senate Budget Committee on Thursday.
What the Right Is Saying
Republicans defended Vought and the administration for proposing what they characterized as needed changes to federal spending. In his opening statement, Vought deemed the president's signature law a "once-in-a-generation" measure "to end fiscal futility, invest in critical priorities, and cut taxes" for working Americans.
Rep. Marlin Stutzman (R-Ind.) noted that Wednesday marked Tax Day and touted the package for boosting the amount that filers are saving on their taxes through various deductions. "This year, the average Hoosier is seeing a tax cut of $3,037. That is real money in their pockets," Stutzman said.
The Indiana Republican also said the provision in the law allowing for taxpayers to deduct up to $10,000 in auto loan interest is "huge" for his state. "Inflation has been a tax on the American people, and what the 'big, beautiful bill' and what you're doing with the administration is bringing those costs down," he told Vought.
Rep. Addison McDowell (R-N.C.) pushed back on his Democratic colleagues who argue the law is "for billionaires" and slammed former President Biden and those on the other side of the aisle for passing the American Rescue Plan, which the CBO projected in 2021 would add more than $1.8 trillion to the deficit through 2031.
Vought disputed Democrats' characterization of the Iran conflict and echoed President Trump and administration officials in arguing that the goal of the war is to prevent the Islamic Republic from developing a nuclear weapon. He noted that Trump "campaigned for peace and against endless" conflicts abroad.
What the Left Is Saying
Democrats on the committee pressed Vought on a variety of topics, including cuts to social programs and the growing price tag of the war with Iran. Rep. Brendan Boyle (D-Pa.), the ranking member on the Budget panel, referenced the nonpartisan Congressional Budget Office's projection in July that the One Big Beautiful Bill Act will add $3.4 trillion to the deficit through 2034.
Progressive Rep. Pramila Jayapal (D-Wash.) slammed the law as benefiting the wealthiest Americans and corporations, saying, "It is not beautiful to strip health care for millions of Americans."
Rep. Bonnie Watson Coleman (D-N.J.) said the administration is prioritizing a "war of choice" with Iran at the expense of domestic initiatives such as economic development and the National Institutes of Health — the latter of which the administration is proposing decreasing funds for by $5 billion relative to the current fiscal year.
Rep. Becca Balint (D-Vt.) highlighted the cost of the conflict and wondered why the federal government "can continue to spend money on foreign wars and yet we cannot find a solution to the fact that people can't afford health care."
The Vermont Democrat also criticized the OMB's proposed increase in overall defense spending from $1 billion to a record $1.5 trillion. "We're not so angry because you're taking our power," she remarked. "We're angry because you're taking the people's power."
What the Numbers Show
The One Big Beautiful Bill Act, which President Trump signed into law last July, instituted sweeping reforms and cuts to Medicaid; enacted tax cuts; and boosted spending for immigration enforcement, defense and domestic production of coal, natural gas and oil at the expense of green energy incentives.
The CBO projected in August that several provisions in the package that address the Affordable Care Act marketplace will increase the number of people without health insurance by 2.1 million in 2034.
As of Tuesday, the average tax refund this filing season was more than $3,400, an increase of 11 percent relative to last year, according to the Treasury Department. The department added that more than 53 million filers claimed at least one of the tax cuts instituted by the GOP-backed law.
Pentagon officials told lawmakers last month that the war with Iran cost more than $11.3 billion over its first six days alone, according to a source briefed on the figure. The White House is also floating between $80 billion and $100 billion in supplemental funding for the war, according to sources briefed on the administration's thinking.
Linda Bilmes, the former chief financial officer of the Commerce Department during the Clinton administration and a public policy professor at Harvard, said earlier this month that she is "certain" the U.S. will spend at least $1 trillion on the war.
In the OMB's budget request to Congress, the administration requested $5.1 billion for global health programs, $4.3 billion less than the amount allotted for the current fiscal year.
During Vought's opening remarks, five protesters were arrested after standing up and chanting "PEPFAR saves lives, spend the money." The protesters were charged with misdemeanor crowding, obstructing or incommoding under Washington, D.C. law and could face up to $500 fines and up to 90 days in jail if found guilty.
The Bottom Line
The testy hearing highlighted the stark partisan divide over federal spending priorities, with Democrats focused on deficit projections and cuts to social programs while Republicans emphasized tax savings for average Americans. The war with Iran emerged as a major point of contention, with Democrats arguing domestic priorities are being shortchanged.
Vought will face additional scrutiny when he testifies before the Senate Budget Committee on Thursday. The administration is seeking record defense spending while proposing cuts to nondefense programs, setting up continued fiscal debates in Congress.