Trump budget bill standoff prompts GOP rebels to mutiny House leaders

The hard-line conservative House Freedom Caucus has released its own proposal to enact President Donald Trump’s agenda via the budget reconciliation process.

The plan would pair a debt ceiling increase and increased border security funding with deep spending cuts through welfare work requirements and rollbacks on progressive Biden administration initiatives.

It’s a sign that House GOP leaders have still not found consensus within the conference on a path forward, despite ambitious plans to get a bill through the chamber at the end of the month.

House and Senate Republicans are aiming to use their congressional majorities to pass a massive conservative policy overhaul via the budget reconciliation process.

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By reducing the Senate’s threshold for passage from one-third to a simple majority, where the House already operates, Republicans will be able to enact Trump’s plans while entirely skirting Democratic opposition, provided the items included relate to budgetary and other fiscal matters.

GOP lawmakers want to include a wide swath of Trump priorities from more funding for border security to eliminating taxes on tipped and overtime wages.

But fiscal hawks have also demanded the package be deficit-neutral or deficit-reducing. Congressional leaders can afford little dissent with their razor-thin majorities and guaranteed lack of Democratic support.

The Freedom Caucus’s plan would follow through on conservatives’ pleas for deep spending cuts, pairing $200 billion in annual new spending for the border and national defense with $486 billion in spending cuts for the same 10-year period.

It would also include a $4 trillion increase in the debt ceiling, something Trump demanded be part of Republicans’ fiscal negotiations.

Spending cuts would be found in codifying rollbacks to the Biden administration’s electric vehicle mandates and imposing Clinton administration-era work requirements for certain federal benefits, among other measures.

Republicans are working to pass President Trump’s agenda via reconciliation. (ROBERTO SCHMIDT/AFP via Getty Images)

The legislation leaves out one critical component of Trump’s reconciliation goals – the extension of his 2017-era Tax Cuts and Jobs Act.

House GOP leaders and Republicans on the Ways & Means Committee had pushed for them to be included alongside border security, debt ceiling, defense and energy measures in one massive reconciliation bill. 

They argued that leaving them for a second bill, which the House Freedom Caucus plan would do, will allow Trump’s tax cuts to expire at the end of this year before Congress has time to act.

The two-track approach is also favored by Senate Republicans, who are moving forward with their own plan this week.

Conservatives on the House Budget Committee pushed back against GOP leaders’ initial proposals for baseline spending cuts to offset new spending in the reconciliation plan, forcing the House to punt on plans to advance a resolution through the House Budget Committee last week.

Senate Budget Committee Chair Lindsey Graham, R-S.C., later announced plans to advance his own proposal through his committee by Thursday.

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“”The biggest loser this weekend wasn’t at the Super Bowl, but rather the American people,” Rep. Andy Ogles, R-Tenn., told Digital. “The clock is ticking, and we are no closer to a budget deal, which is why the House Freedom Caucus released our Emergency Border Control Resolution Budget to secure our border and address Trump’s America First Agenda.”

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House Freedom Caucus Chair Andy Harris, R-Md., said in a statement, “Given the current delay in the House on moving a comprehensive reconciliation bill, moving a smaller targeted bill now makes the most sense to deliver a win for the President and the American people.”

Rep. Michael Cloud, R-Texas, said, “The American people voted for Donald Trump to see action – not for Congress to sit on its hands while our short window to pass his America-First agenda closes.”

Supporters of the two-bill approach have said it would secure early wins on issues Republicans agree most on while leaving more complex matters like tax cuts for the latter half of the year.