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Divided Approaches on Budget Resolution Among Republicans
A significant divergence has emerged between Senate and House Republicans regarding the budget resolution essential for advancing President Trump’s domestic agenda.
The recently introduced 70-page resolution by Senate Republicans serves as a framework that outlines how lawmakers will draft a final bill encompassing Trump’s key initiatives. Both chambers had previously passed differing resolutions and have been negotiating to reach a consensus.
At the heart of the disagreement is the proposed increase in the debt limit. Senate Republicans are advocating for a $5 trillion rise, aiming to pass it without any Democratic votes, while their House counterparts suggest a more modest increase of $4 trillion.
Senate proponents argue that a $5 trillion hike is necessary to extend the debt ceiling beyond the 2026 midterm elections. They believe failing to do so could leave the Republican-led Congress vulnerable to having to negotiate further debt increases as the elections approach.
Conversely, House GOP leaders express concern that a greater debt limit may trigger opposition from fiscal conservatives within their ranks, potentially derailing the budget resolution.
The Senate’s budget resolution explicitly tasks the Senate Finance Committee with proposing changes that would raise the statutory debt limit by no more than $5 trillion, while simultaneously incorporating the House’s provision that limits the increase to $4 trillion.
Embedding the debt-limit provision in the resolution would grant Republicans the capability to enhance the nation’s borrowing limit without requiring Democratic support.
Among the Senate Republicans, Sen. Rand Paul (R-Ky.) has voiced his opposition to a resolution that includes a $5 trillion debt increase. He plans to propose an amendment aiming to restrict borrowing to $500 billion.
“We need Congress to uphold its promises to rein in spending. Call your congresspeople to say NO to $5T in new debt!” Paul declared on X, the social media platform.
The implications of the resolution could pave the way for a budget reconciliation package later, which Senate Democrats would be unable to obstruct through filibuster tactics.
Senate Budget Committee Chairman Lindsey Graham (R-S.C.) confirmed that President Trump is “fully on board” with the Senate’s budget strategy.
“Senate Budget Committee Republicans met today with the President. He is fully on board with the Senate’s proposal and process to cut spending,” Graham stated.
A pivotal aspect of the Senate budget resolution is its authorization for Graham to adopt a “current policy” baseline—this would allow an assessment of extending the 2017 Trump tax cuts without reflecting an increase in the deficit.
This provision would ease the burden on Senate Republicans, sparing them from the necessity of proposing severe cuts to entitlement programs or other mandatory areas to balance out the costs associated with prolonging the 2017 Tax Cuts and Jobs Act, which is set to expire soon.
Graham believes that using this baseline approach “will allow the tax cuts to be permanent — which will tremendously boost the economy.”
“Budget committee Chairmen before me have utilized section 312 to determine spending and revenue levels and have also instructed the Congressional Budget Office and Joint Committee on Taxation to adjust scoring,” he elaborated.
The resolution permits the Senate Budget Committee Chairman to employ “more realistic assumptions regarding current tax policy, which may include … extending provisions of the Tax Cuts and Jobs Act … in order to prevent massive tax increases on working families and small businesses.”
Senate Majority Leader John Thune (R-S.D.) defended the proposal allowing Graham to set the budget baseline for projecting the deficit impact of prolonging the 2017 tax cuts.
“The Senate parliamentarian has reviewed the Budget Committee’s substitute amendment and deemed it appropriate for consideration under the Budget Act,” Thune asserted. “It is now time for the Senate to move forward with this budget resolution in order to further advance our shared Republican agenda in Congress.”
However, Democrats within the Senate Budget Committee have expressed skepticism, arguing that the parliamentarian has not authorized the use of a current policy baseline for scoring the extension of the Trump tax cuts as not contributing to the deficit. They plan to challenge this interpretation on the Senate floor over the weekend.
“The Republicans’ budget resolution does not contain language permitting them to use the current policy baseline to measure reconciliation. The Parliamentarian’s decision that this is appropriate for consideration under the Budget Act should not be construed as an approval of the use of a current policy baseline. Any assertion that the Parliamentarian approved the use of a current policy baseline is false,” stated Senate Democrats on the Budget panel.
Source
thehill.com