In a rare display of fiscal restraint, Senate Republicans have carved a billion dollars from Donald Trump’s proposed White House ballroom expansion. The move, which passed on a party-line vote, signals a growing unease within the GOP about the president’s penchant for grandiose spending.
The project, initially estimated at $1.8bn, was meant to transform the East Wing into a ‘world-class entertainment venue’ capable of hosting state dinners and campaign fundraisers. Critics derided it as a monument to ego, a ‘Taj Mahal’ for a president who already commands a skyscraper empire.
The $1bn cut leaves the project at a still eye-watering $800m, roughly the cost of a new aircraft carrier. Or, as one Treasury official muttered, ‘enough to keep the lights on in the federal government for two hours.’
The market reaction was muted, as gilt yields remained anchored near 3.5%. But the signal is clear: even Trump’s allies are balking at his spendthrift ways. Inflation hawks will note that this modest trimming does little to address the ballooning deficit, now north of $1.5trn.
The question is whether this is a one-off or the opening salvo in a broader rebellion. With midterms looming, Republicans are suddenly rediscovering their fiscal religion. But for a party that slashed taxes and then cheered a $2trn stimulus, the conversion seems rather convenient.
For now, the white marble floors and crystal chandeliers will have to wait. The bond market watches, unimpressed.
