Republicans Present Conflicting Strategies for Advancing Trump’s Agenda
Congressional Republicans are split on how to push forward President-elect Donald Trump’s agenda, with tax policy debates taking center stage in the lead-up to his inauguration.
As they prepare to assume unified control of Washington in January, Republicans are grappling with competing legislative priorities. Incoming Senate Majority Leader John Thune (R-SD) has suggested securing a swift legislative win on energy and border security by bundling these measures with a broader defense bill. According to the Washington Examiner, Thune unveiled this plan on Tuesday.
However, Thune’s proposal has met with a tepid response in the House, especially from members of the Ways and Means Committee. They worry that postponing tax reform discussions until later in the year—a preference of the South Dakota Republican—might sideline their efforts entirely.
Timing is crucial, as Republicans may only have two opportunities to pass their agenda without requiring Democratic support. By using reconciliation, a process that circumvents the Senate filibuster, they can pass spending measures with a simple majority of 51 votes.
In theory, Republicans could address tax reform in October, at the start of the new fiscal year. However, House tax writers view this as a risky move, given that the Trump-era tax cuts from 2017 are set to expire at the end of 2025.
Led by Rep. Jason Smith (R-MO), the chairman of the House Ways and Means Committee, lawmakers are advocating for combining border security and energy reforms into a comprehensive tax package instead.
“House Republicans are unified that we’ve got to deal with border, energy, and taxes. I think reasonable people are trying to figure out, tactically, what’s the right way to deliver that,” a House GOP lawmaker involved in the discussions told the Examiner.
“Frankly, it all comes down to this central question: Is it better to have a narrow package that puts points on the board right away? Or is it better to spend a few more months putting together a comprehensive package?” the lawmaker added.
This debate underscores the challenge Republicans will face in maintaining unity next year. With limited time to advance Trump’s agenda, the party has little room for error if they opt to proceed without bipartisan cooperation, the outlet noted.
Republicans will begin the year with a slim majority in the House, the same narrow margin that previously hindered efforts to pass a budget without bipartisan support. In the Senate, they hold just a three-seat majority.
Thune’s plan, introduced during a Senate GOP policy retreat, aims to deliver an early legislative win for President-elect Trump on a cornerstone campaign issue: border security.
Although reconciliation cannot be used to enact sweeping policy changes, it can address measures with a direct deficit impact under Senate rules. This could allow Republicans to allocate funds for border wall construction or additional hiring of agents.
“House tax writers, for their part, are worried their package will lose votes if it does not include deal-sweeteners on the border or energy reform. Restoring the state and local tax deduction, in particular, will be a point of contention for Republicans in higher-income states,” the Examiner reported. Speaker Mike Johnson (R-LA) has yet to endorse a specific strategy, stating on Tuesday that there are “pros and cons” to both approaches.
Meanwhile, Thune is working to rally support for his proposal in the Senate. Opinions were varied during Tuesday’s retreat.
“I don’t think there was any consensus on what the sequencing should be,” said Sen. John Cornyn (R-TX), a senior member of the Finance Committee. “There’s going to have to be a whole lot more consultation and socializing the issues,” he added.
Sen. Steve Daines (R-MT), another Finance Committee member, described the meeting as an opportunity to “digest what’s in front of us and to find the smartest path forward.”