RUSH TRANSCRIPT These are ░░░░░░░░ Speaker Mike Johnson and ░░░░░░░░ leadership are looking to ░░░░░░░░ another party line mega ░░░░░░░░ this coming fall Joining ░░░░░░░░ now Texas Republican congressman ░░░░░░░░ Arrington He chairs the ░░░░░░░░ committee Good morning Good ░░░░░░░░ You want to talk ░░░░░░░░ the ob We already ░░░░░░░░ and what it s ░░░░░░░░ to do Or do ░░░░░░░░ want to talk about ░░░░░░░░ was left out and ░░░░░░░░ s still needed to ░░░░░░░░ done Well I think ░░░░░░░░ d like to say ░░░░░░░░ achieved historic economic and ░░░░░░░░ reforms along with the ░░░░░░░░ investment in border security ░░░░░░░░ national defense So I ░░░░░░░░ making our country safer ░░░░░░░░ more prosperous has been ░░░░░░░░ in terms of policies ░░░░░░░░ creating the conditions And ░░░░░░░░ think that that will ░░░░░░░░ realized in the in ░░░░░░░░ months and quarters ahead ░░░░░░░░ I m very proud ░░░░░░░░ that much needed long ░░░░░░░░ And then you mentioned ░░░░░░░░ budget reconciliation opportunities I ░░░░░░░░ we stretch that rubber ░░░░░░░░ between the moderates and ░░░░░░░░ hawks quite a bit ░░░░░░░░ get that bill through ░░░░░░░░ have record spending reductions ░░░░░░░░ 1 5 trillion That ░░░░░░░░ twice as much as ░░░░░░░░ ve ever cut in ░░░░░░░░ Is there more meat ░░░░░░░░ the bone in terms ░░░░░░░░ fiscal reforms You bet ░░░░░░░░ budget chairman I can ░░░░░░░░ you there s never ░░░░░░░░ for me especially with ░░░░░░░░ trillion annual deficits and ░░░░░░░░ trillion Would it Be ░░░░░░░░ debt That s the ░░░░░░░░ Would it be more ░░░░░░░░ cuts More more Because ░░░░░░░░ remember I know you ░░░░░░░░ senator Johnson just hammering ░░░░░░░░ point that we re ░░░░░░░░ far above what we ░░░░░░░░ spending pre pandemic Yeah ░░░░░░░░ though there s no ░░░░░░░░ anymore He want to ░░░░░░░░ line by line And ░░░░░░░░ Johnson the speaker said ░░░░░░░░ I d like to ░░░░░░░░ that too but I ░░░░░░░░ s my card Here ░░░░░░░░ the hand that I ░░░░░░░░ Here s the hand ░░░░░░░░ you have in the ░░░░░░░░ Here s a hand ░░░░░░░░ the Senate We re ░░░░░░░░ going to do it ░░░░░░░░ hand isn t changing ░░░░░░░░ why be optimistic now ░░░░░░░░ then you got the ░░░░░░░░ which said a lot ░░░░░░░░ things didn t pass ░░░░░░░░ Byrd rule Is there ░░░░░░░░ way of structuring some ░░░░░░░░ those things to get ░░░░░░░░ done There is I ░░░░░░░░ we can spend a ░░░░░░░░ more time on some ░░░░░░░░ the conservative reforms that ░░░░░░░░ kicked out by the ░░░░░░░░ like prohibitions against taxpayer ░░░░░░░░ going to transgender procedures ░░░░░░░░ I think is still ░░░░░░░░ it totally inappropriate Well ░░░░░░░░ s no it was ░░░░░░░░ out but we didn ░░░░░░░░ spend enough time to ░░░░░░░░ to figure out how ░░░░░░░░ write it so that ░░░░░░░░ was more budget and ░░░░░░░░ than policy How you ░░░░░░░░ that budget Well we ░░░░░░░░ it on a number ░░░░░░░░ fronts that people didn ░░░░░░░░ think like defunding Planned ░░░░░░░░ With respect to Medicaid ░░░░░░░░ which is the largest ░░░░░░░░ of funding for Planned ░░░░░░░░ So I think there ░░░░░░░░ a there s a ░░░░░░░░ to do it We ░░░░░░░░ didn t spend enough ░░░░░░░░ Another thing that was ░░░░░░░░ out is our ability ░░░░░░░░ enforce the prohibition on ░░░░░░░░ states using fungible Medicaid ░░░░░░░░ for people here illegally ░░░░░░░░ are two that I ░░░░░░░░ put into the sort ░░░░░░░░ conservative reforms And then ░░░░░░░░ are Medicaid and Medicare ░░░░░░░░ benefit efficiencies Medicare for ░░░░░░░░ We re paying hospitals ░░░░░░░░ in reimbursement for the ░░░░░░░░ procedures as physician groups ░░░░░░░░ outpatient procedures same outcomes ░░░░░░░░ the same and often ░░░░░░░░ same mid levels and ░░░░░░░░ And we could save ░░░░░░░░ billion by just equalizing ░░░░░░░░ There s a number ░░░░░░░░ those non benefit efficiency ░░░░░░░░ I think left for ░░░░░░░░ to dig into Did ░░░░░░░░ maximize that sort of ░░░░░░░░ fault lines in the ░░░░░░░░ within the conference I ░░░░░░░░ so we had 1 ░░░░░░░░ trillion in cuts The ░░░░░░░░ had one five We ░░░░░░░░ the tax cuts and ░░░░░░░░ no deficit They had ░░░░░░░░ a 500 billion delta ░░░░░░░░ think we ll cover ░░░░░░░░ Joe just by keeping ░░░░░░░░ spending flat Trump put ░░░░░░░░ 23 cut on discretionary ░░░░░░░░ That s 25 of ░░░░░░░░ budget In reconciliation We ░░░░░░░░ focused on the 75 ░░░░░░░░ mandatory spending health care ░░░░░░░░ welfare If we hold ░░░░░░░░ flat let s just ░░░░░░░░ just constrain it for ░░░░░░░░ year That s a ░░░░░░░░ 1 trillion in savings ░░░░░░░░ a year And that ░░░░░░░░ just one year the ░░░░░░░░ years of the president ░░░░░░░░ tenure So we re ░░░░░░░░ to more than offset ░░░░░░░░ And with growth we ░░░░░░░░ going to see the ░░░░░░░░ and deficit to GDP ░░░░░░░░ down the fiscal health ░░░░░░░░ our country restored and ░░░░░░░░ opportunity for greater prosperity ░░░░░░░░ the future So I ░░░░░░░░ Bullish the cbo will ░░░░░░░░ or the cbo sorry ░░░░░░░░ will have a heart ░░░░░░░░ if the deficit comes ░░░░░░░░ Yeah they won t ░░░░░░░░ what to do But ░░░░░░░░ it s sometimes it ░░░░░░░░ giggle because they have ░░░░░░░░ do it a certain ░░░░░░░░ And those are the ░░░░░░░░ they come out with ░░░░░░░░ aren t allowed to ░░░░░░░░ anything positive from from ░░░░░░░░ of this stuff Well ░░░░░░░░ were they were they ░░░░░░░░ off wildly with record ░░░░░░░░ to the treasury When ░░░░░░░░ cut corporate rates from ░░░░░░░░ to 21 we had ░░░░░░░░ ve had record revenue ░░░░░░░░ since They were off ░░░░░░░░ 1 trillion in 2023 ░░░░░░░░ predicting what the deficit ░░░░░░░░ be under Joe Biden ░░░░░░░░ we will get to ░░░░░░░░ 2 6 annual average ░░░░░░░░ rate that we assumed ░░░░░░░░ our budget I think ░░░░░░░░ will exceed it We ░░░░░░░░ conservative Biden I mean ░░░░░░░░ and Trump both had ░░░░░░░░ than the 2 6 ░░░░░░░░ their tenure I think ░░░░░░░░ s a fair there ░░░░░░░░ a fair question to ░░░░░░░░ asked about whether the ░░░░░░░░ cuts unto themselves ultimately ░░░░░░░░ for themselves Right I ░░░░░░░░ I think we can ░░░░░░░░ back in history and ░░░░░░░░ is very rare where ░░░░░░░░ cuts on their own ░░░░░░░░ for themselves It really ░░░░░░░░ only going to work ░░░░░░░░ all of these other ░░░░░░░░ parts including some of ░░░░░░░░ deregulation issues that we ░░░░░░░░ talked about actually pan ░░░░░░░░ Yes Well I think ░░░░░░░░ took on Republican orthodoxy ░░░░░░░░ I say we deficit ░░░░░░░░ and my budget committee ░░░░░░░░ who for the first ░░░░░░░░ said we re going ░░░░░░░░ tie spending cuts to ░░░░░░░░ cuts and we re ░░░░░░░░ going to suggest that ░░░░░░░░ tax cuts are created ░░░░░░░░ that all are pro ░░░░░░░░ and that all pay ░░░░░░░░ themselves So I would ░░░░░░░░ with you which is ░░░░░░░░ why we put that ░░░░░░░░ provision in the house ░░░░░░░░ to offset the tax ░░░░░░░░ cost The Senate didn ░░░░░░░░ comply which is why ░░░░░░░░ made their permanent and ░░░░░░░░ up about a you ░░░░░░░░ 500 billion tab over ░░░░░░░░ house budget So I ░░░░░░░░ with you Even when ░░░░░░░░ even when the house ░░░░░░░░ nothing for a new ░░░░░░░░ they get thrown out ░░░░░░░░ ve done a lot ░░░░░░░░ the house going to ░░░░░░░░ Republican in your view ░░░░░░░░ it is a this ░░░░░░░░ a big bill This ░░░░░░░░ this is monumental And ░░░░░░░░ know that it s ░░░░░░░░ depending on what poll ░░░░░░░░ look at and which ░░░░░░░░ media outlet you know ░░░░░░░░ talking about it it ░░░░░░░░ supposedly really unpopular And ░░░░░░░░ it possible that you ░░░░░░░░ to do everything in ░░░░░░░░ the first two years ░░░░░░░░ the Trump presidency that ░░░░░░░░ want to do I ░░░░░░░░ in my my mentality ░░░░░░░░ 10 years of serving ░░░░░░░░ Congress is you do ░░░░░░░░ you can I think ░░░░░░░░ struck a good balance ░░░░░░░░ terms of the fiscal ░░░░░░░░ and spending reduction measures ░░░░░░░░ think the proof s ░░░░░░░░ to be in the ░░░░░░░░ Right We did this ░░░░░░░░ in very aggressive timetable ░░░░░░░░ Both the house on ░░░░░░░░ Day and independence day ░░░░░░░░ complete the whole project ░░░░░░░░ gives enough time Joe ░░░░░░░░ the reality of the ░░░░░░░░ to show up if ░░░░░░░░ were in the paychecks ░░░░░░░░ the pocketbooks of our ░░░░░░░░ Americans who got enhanced ░░░░░░░░ breaks through increased standard ░░░░░░░░ through the no tax ░░░░░░░░ tip breaks over time ░░░░░░░░ the list is Is ░░░░░░░░ it just to get ░░░░░░░░ 100 expensing for companies ░░░░░░░░ are trying to grow ░░░░░░░░ 100 expensing is the ░░░░░░░░ progress Can I ask ░░░░░░░░ question about that though ░░░░░░░░ then I actually have ░░░░░░░░ question about Texas Yeah ░░░░░░░░ one of your residents ░░░░░░░░ you probably know him ░░░░░░░░ ask about him on ░░░░░░░░ expensing question My understanding ░░░░░░░░ it goes back to ░░░░░░░░ So you can actually ░░░░░░░░ expense And so the ░░░░░░░░ is the only thing ░░░░░░░░ don t understand about ░░░░░░░░ piece is that doesn ░░░░░░░░ spur new spending Right ░░░░░░░░ s almost just a ░░░░░░░░ you present for past ░░░░░░░░ And I that was ░░░░░░░░ I didn t really ░░░░░░░░ if I was trying ░░░░░░░░ incentivize going forward because ░░░░░░░░ s effectively as I ░░░░░░░░ sort of a very ░░░░░░░░ backing kind of thing ░░░░░░░░ do I m with ░░░░░░░░ I mean this is ░░░░░░░░ not for my ideal ░░░░░░░░ but for good policies ░░░░░░░░ agree it should be ░░░░░░░░ because we re trying ░░░░░░░░ incentivize the right behavior ░░░░░░░░ forward which we have ░░░░░░░░ both with tax relief ░░░░░░░░ working families and those ░░░░░░░░ provisions that we supercharge ░░░░░░░░ making them permanent especially ░░░░░░░░ expensing R D interest ░░░░░░░░ and capital expensing But ░░░░░░░░ I don t disagree ░░░░░░░░ that And then on ░░░░░░░░ of your you re ░░░░░░░░ most familiar with That ░░░░░░░░ question Most most famous ░░░░░░░░ at least at the ░░░░░░░░ in your state beyond ░░░░░░░░ former president is a ░░░░░░░░ named Elon Musk who ░░░░░░░░ t like Any I ░░░░░░░░ Heard of that who ░░░░░░░░ t like any of ░░░░░░░░ and is all over ░░░░░░░░ or x I should ░░░░░░░░ you know very frustrated ░░░░░░░░ with what it means ░░░░░░░░ all the work he ░░░░░░░░ on doge He s ░░░░░░░░ after the president constantly ░░░░░░░░ raising the Jeffrey Epstein ░░░░░░░░ I don t know ░░░░░░░░ m curious what you ░░░░░░░░ just of all of ░░░░░░░░ And what do you ░░░░░░░░ him I think there ░░░░░░░░ a lot of personal ░░░░░░░░ wrapped up in his ░░░░░░░░ Obviously I think that ░░░░░░░░ obvious to people but ░░░░░░░░ give him credit I ░░░░░░░░ he s been concerned ░░░░░░░░ the fiscal trajectory of ░░░░░░░░ country the national debt ░░░░░░░░ think he s right ░░░░░░░░ s tremendous waste Joe ░░░░░░░░ the Covid bloat That ░░░░░░░░ hundreds of billions of ░░░░░░░░ that we never rightsized ░░░░░░░░ Covid by the way ░░░░░░░░ s on the discretionary ░░░░░░░░ mostly So that s ░░░░░░░░ to be harder because ░░░░░░░░ s a bipartisan appropriations ░░░░░░░░ as opposed to a ░░░░░░░░ Republican exercise in reconciliation ░░░░░░░░ nevertheless I give him ░░░░░░░░ I think since Ronald ░░░░░░░░ no one has raised ░░░░░░░░ awareness of our fiscal ░░░░░░░░ and the need to ░░░░░░░░ it in and restore ░░░░░░░░ and responsibility in America ░░░░░░░░ government s balance sheet ░░░░░░░░ Elon Musk So I ░░░░░░░░ I take the good ░░░░░░░░ what he s done ░░░░░░░░ I ll let these ░░░░░░░░ personal issues settle in ░░░░░░░░ which I believe they ░░░░░░░░ Right You could ask ░░░░░░░░ person at this point ░░░░░░░░ the street what how ░░░░░░░░ do we collect and ░░░░░░░░ much do we spend ░░░░░░░░ probably more than in ░░░░░░░░ people know Well we ░░░░░░░░ always collected 17 and ░░░░░░░░ re spending 24 and ░░░░░░░░ and more people And ░░░░░░░░ s something that people ░░░░░░░░ to understand that when ░░░░░░░░ start you know bellyaching ░░░░░░░░ every single cut that ░░░░░░░░ make we never have ░░░░░░░░ at 24 of GDP ░░░░░░░░ That s right that ░░░░░░░░ right Spending is the ░░░░░░░░ of this You can ░░░░░░░░ both But but it ░░░░░░░░ you got to favor ░░░░░░░░ of rein it in ░░░░░░░░ little bit.