Free Trial

GOP No Closer To Agreement On Reconciliation Strategy

US

The GOP is no closer to agreeing on 2025 legislative strategy, following a meeting between President-elect Donald Trump and Republican Senators yesterday. 

  • Trump said ahead of the Capitol Hill meeting: “We’re looking at the one bill versus two bills, and whatever it is, it doesn’t matter.”
  • Trumpexited the meeting with the same message: “One bill, two bills, doesn’t matter,” signalling that House and Senate Republicans must resolve their conflict independently of Trump.
  • Two prominent conservatives in the Senate, Ron Johnson (R-WI) and Rand Paul (R-KY), indicated momentum, and Trump's backing, is leaning towards one huge reconciliation bill, but such a strategy risks dropping support from House conservatives who will baulk at approving what could be the biggest legislative package in American history.
  • The lack of a coherent strategy is a warning the GOP’s razor-thin majority in the House will make legislation far more fraught than Trump’s first term when a robust majority outnumbered the hardline House conservative bloc.
  • As a further complication, Congress must legislate FY2025 spending bills before government funding expires in just over two months and address the federal debt ceiling before a summer default risk emerges.
  • Including a debt ceiling hike in reconciliation will test the loyalty of deficit hawks who have never voted to raise the debt limit. As a reminder, just two or three lawmakers have the power to torpedo the entire Republican agenda.
  • Trump will meet House Republican factions, including the House Freedom Caucus, the pragmatic Main Street Caucus, and SALT-focused blue-state Republicans, on the weekend.
251 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The GOP is no closer to agreeing on 2025 legislative strategy, following a meeting between President-elect Donald Trump and Republican Senators yesterday. 

  • Trump said ahead of the Capitol Hill meeting: “We’re looking at the one bill versus two bills, and whatever it is, it doesn’t matter.”
  • Trumpexited the meeting with the same message: “One bill, two bills, doesn’t matter,” signalling that House and Senate Republicans must resolve their conflict independently of Trump.
  • Two prominent conservatives in the Senate, Ron Johnson (R-WI) and Rand Paul (R-KY), indicated momentum, and Trump's backing, is leaning towards one huge reconciliation bill, but such a strategy risks dropping support from House conservatives who will baulk at approving what could be the biggest legislative package in American history.
  • The lack of a coherent strategy is a warning the GOP’s razor-thin majority in the House will make legislation far more fraught than Trump’s first term when a robust majority outnumbered the hardline House conservative bloc.
  • As a further complication, Congress must legislate FY2025 spending bills before government funding expires in just over two months and address the federal debt ceiling before a summer default risk emerges.
  • Including a debt ceiling hike in reconciliation will test the loyalty of deficit hawks who have never voted to raise the debt limit. As a reminder, just two or three lawmakers have the power to torpedo the entire Republican agenda.
  • Trump will meet House Republican factions, including the House Freedom Caucus, the pragmatic Main Street Caucus, and SALT-focused blue-state Republicans, on the weekend.