January 07, 2025 13:55 GMT
US: Two Key Meetings To Determine Republican Legislative Strategy
US
USHomepagemarkets-real-timePolitical RiskPolitical Risk BulletBulletMarketsFixed Income BulletsForeign Exchange BulletsNorth America
US President-elect Donald Trump will hold two key meetings with Republican lawmakers this week amid uncertainty over strategy to legislate Trump's agenda.
- On Wednesday, Trump will huddle with Senate Republicans in Washington. On the weekend, Trump will host a large, diverse group of House Republicans at his Mar-a-Lago resort. The Mar-a-Lago attendees are expected to include members of the conservative House Freedom Caucus, various committee chairs, and 'blue state' Republicans who are pushing to increase the State and Local Tax (SALT) deduction.
- Early statements from the Senate and Trump's transition team indicated a preference for two major filibuster-proof reconciliation bills, with the first to cover immigration and energy and the second to cover tax and spending. However, since the re-election of House Speaker Mike Johnson (R-LA), Trump has appeared to lean toward a single 'mega bill' strategy forwarded by House Republicans.
- A single reconciliation bill is likely the optimum strategy if the GOP is to ensure adequate Congressional time to extend the Trump tax cuts that expire at the end of the year and avoid a confrontation with House conservatives who are likely to resist passing two high-cost reconciliation bills in one year.
192 words