House Freedom Caucus to draw battle lines on reconciliation fight after presenting plan to Trump
2025-01-16
Category: political

FIRST ON FOX: The conservative House Freedom Caucus is preparing to release a proposal for Republicans' planned conservative policy overhaul that would raise the debt limit by two years or roughly $4 trillion, Fox News Digital is told. Congressional Republicans are preparing for a massive conservative policy overhaul through the budget reconciliation process. By lowering the threshold for passage in the Senate from 60 votes to 51, reconciliation allows the party controlling Congress and the White House to pass broad policy changes — provided they deal with budgetary and other fiscal matters. However, there has been some disagreement over whether to pass all of their goals – touching on border security, defense, spending cuts, tax cuts, and energy – in one single bill to not risk any items falling behind, or split the priorities into two separate pieces of legislation to ensure early victory on at least some measures.  President-elect Donald Trump has said he favors the one-bill approach, but would be open to two. He also tasked Republicans with raising or suspending the debt limit, with the U.S. Treasury projected to run out of funds to pay its debts by mid-June. Freedom Caucus members are among the Republicans calling for two separate bills. The plan being unveiled on Thursday would call for border security, defense, and steep spending cuts to be included in the first bill. Those cuts would then be used to offset tax breaks being extended in the second bill, Fox News Digital was told. The conservative lawmakers presented the plan to Trump at Mar-a-Lago last Friday, but it is unclear how he responded. REPUBLICANS GIVE DETAILS FROM CLOSED-DOOR MEETINGS WITH DOGE'S MUSK, RAMASWAMY  Senate Majority Leader John Thune, R-S.D., previously backed a two-bill approach in public comments.&nbsp; Opponents of that plan, which include Republicans on the House Ways &amp; Means Committee, have warned that leaving Trump's tax cuts for a second bill would all but guarantee that provisions he passed during his previous term would expire by the end of the year, raising taxes for millions of Americans. Committee Chairman Jason Smith, R-Mo., previously pointed out to FOX Business host Maria Bartiromo that two reconciliation bills have not been passed in one term since the 1990s. However, GOP negotiators have not decided whether to include action on the debt limit in their reconciliation bill, with both measures known to require difficult political maneuvering.&nbsp; The Freedom Caucus' expected plan is a way for fiscal hawks who have traditionally scorned action on the debt limit to agree to do so. JOHNSON BLASTS DEM ACCUSATIONS HE VOWED TO END OBAMACARE AS 'DISHONEST'  That same group is also concerned that putting all the agenda items into a single bill will not result in sufficient cuts to offset the added spending.&nbsp; CLICK HERE TO GET THE FOX NEWS APP With two House Republicans departing for the Trump administration on Jan. 20, Speaker Mike Johnson, R-La., will have to navigate a razor-thin majority until special elections are expected in April. Until then, just one Republican "no" vote will be enough to derail any piece of legislation that does not get Democratic support. Fox News Digital reached out to the Trump transition team and the House Freedom Caucus for comment.