The conservative House Freedom Caucus is gearing up to unveil a proposal aimed at the planned conservative policy overhaul by Republicans. The proposal includes raising the debt limit by approximately $4 trillion over two years, as per a reliable source.
Congressional Republicans are strategizing for a significant conservative policy revamp through the budget reconciliation process. This process allows for the passage of broad policy changes by lowering the Senate passage threshold from 60 votes to 51, provided the changes pertain to budgetary and fiscal matters.
There is a debate within the party on whether to consolidate all their objectives – spanning border security, defense, spending cuts, tax cuts, and energy – into a single bill to avoid any items being left behind, or to split the priorities into two separate pieces of legislation to secure early victories on some measures.
President-elect Donald Trump has expressed a preference for the one-bill approach but is open to the idea of two bills. He has tasked Republicans with addressing the debt limit issue, with the U.S. Treasury projected to face a funding shortfall by mid-June.
The Freedom Caucus members are advocating for two separate bills. The plan set to be revealed on Thursday proposes including border security, defense, and substantial spending cuts in the first bill. These cuts would then be utilized to offset tax breaks extended in the second bill.
The conservative lawmakers presented their plan to Trump at Mar-a-Lago last Friday, although his response remains undisclosed.
Senate Majority Leader John Thune has publicly supported a two-bill approach. However, opponents, including Republicans on the House Ways & Means Committee, have cautioned that delaying Trump's tax cuts to a second bill could lead to their expiration by year-end, resulting in tax hikes for many Americans.
Committee Chairman Jason Smith highlighted that passing two reconciliation bills in one term has not occurred since the 1990s.
There is uncertainty among GOP negotiators regarding whether to address the debt limit in the reconciliation bill, as both measures necessitate intricate political maneuvering.
The anticipated plan from the Freedom Caucus aims to persuade fiscal hawks, who have historically opposed action on the debt limit, to agree to the proposal.
The same group is apprehensive that consolidating all agenda items into a single bill may not yield adequate cuts to counterbalance the increased spending.
With two House Republicans departing for the Trump administration on Jan. 20, Speaker Mike Johnson will need to navigate a slim majority until anticipated special elections in April. During this period, a single Republican dissenting vote could thwart any legislation lacking Democratic support.
