While the proposal stands almost no chance of becoming law, House Budget Committee Chairman Paul Ryan, R-Wis., unveiled the House Republican budget for fiscal year 2015 on Tuesday.
Ryan's budget proposal includes deep cuts to domestic programs, increased defense spending, and substantial changes to entitlement programs.
"This is a plan to balance the budget and create jobs, and it builds off a simple fact: We can't keep spending money we don't have," Ryan said in a statement.
He added, "By cutting wasteful spending, strengthening key priorities, and laying the foundation for a stronger economy, we have shown the American people there's a better way forward."
Ryan claimed that his proposal balances the budget in ten years by cutting government spending by more than $5 trillion.
The reduction in government spending purportedly stems from repealing Obamacare and cutting spending on social assistance programs like food stamps.
The budget plan also includes a controversial proposal that would fundamentally alter Medicare benefits for younger Americans.
Ryan noted that his proposal adheres to the funding levels for fiscal 2015 that were set in the Bipartisan Budget Act of 2013.
The Houses Budget Committee will consider the proposal on Wednesday. The proposal is subsequently expected to be voted on by the full House sometime next week.
However, with the Bipartisan Budget Act setting spending levels for the next two years, Senate Democrats are not expected to offer a competing budget proposal.
Ryan's budget proposal is therefore likely to be ignored by the Senate, although it is likely to be cited by both sides in the campaigns leading up to the upcoming midterm elections.
White House Press Secretary Jay Carney released a statement that was highly critical of Ryan's budget plan, arguing that it offers the same old top-down approach.
Carney claimed Ryan's budget would raise taxes on middle class families with children by an average of at least $2,000 in order to cut taxes for households with incomes over $1 million.
"Budgets are about choices and values," Carney said. "House Republicans have chosen to protect tax breaks for the wealthiest rather than create opportunities for middle class families to get ahead."
He added, "The President believes that is the wrong approach and that we should instead be making smart investments necessary to create jobs, grow our economy, and expand opportunity, while still cutting the deficit in a balanced way and securing our nation's future."
President Barack Obama sent his own budget proposal for fiscal 2015 to Congress last month, although it received a cold reception from Republicans on Capitol Hill.
The $3.9 trillion budget proposal was seen as a White House wish list and included closing tax loopholes for the rich while expanding tax credits for the poor and middle class.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.