Three big developments are poised to give Republican lawmakers long-sought clarity on how they can get moving on President Donald Trump’s legislative agenda — and when they need to finish.
Time to punt: As they rush to settle on a budget framework before Easter recess, Speaker Mike Johnson and Senate Majority Leader John Thune are signaling that they’ll move forward without resolving some major disputes over how to pay for Trump’s tax, border and energy policies — including controversial Medicaid cuts.
They’ll do that by approving a budget resolution that defers to each chamber’s respective committees for how much money they will need to trim from programs under their jurisdictions, and then try to merge the approaches later.
Tax clarity: The Senate parliamentarian is expected to decide in the coming days whether Republicans can use an accounting approach known as “current policy baseline” that would allow them to extend Trump’s 2017 tax cuts in a costless fashion.
Thune said in an interview that Republicans need to know if the parliamentarian will green-light their strategy before taking their budget resolution to the floor, which they want to do as soon as next week.
Separately on Wednesday, House GOP tax writers met in private with Joint Committee on Taxation chief Thomas Barthold to discuss next steps on their tax package. The non-partisan JCT will have to weigh in on the cost of extending tax cuts and Trump’s other tax pledges, including eliminating taxes on tips and overtime work.
X marks the deadline: CBO announced Wednesday that the U.S. will default on its debt around August or September if Congress doesn’t act — in effect setting a new deadline for Republicans to pass Trump’s mega-bill if they stick with a plan to include a debt ceiling increase.
House Republicans are hoping the updated “X-date” lights a fire under the Senate GOP to speed things up.
“We all know Congress needs a deadline to get anything done,” said a senior House GOP aide granted anonymity to speak freely. “This is the new deadline.”
What else we’re watching:
- Schumer’s staying: Despite fury across the party over the shutdown fight, Democratic lawmakers and frustrated donors are making the calculation that Senate Minority Leader Chuck Schumer is here to stay. There’s no obvious alternative nor any appetite among most Senate Democrats for a messy leadership contest. Schumer is working to convince his members that he understands the need to ramp up their tactics, though it’s clear he still has some work to do.
- What’s next for Signalgate: Senate Armed Services Chair Roger Wicker says he and his Democratic counterpart Jack Reed are looking into an expedited probe of the Signal chat breach involving top Trump administration officials. They are requesting a Pentagon inspector general review and a classified briefing for their committee.
- Trump’s SEC pick testifies: Paul Atkins, Trump’s pick to lead the SEC, will tell Senate Banking Thursday that establishing a “firm regulatory foundation” for cryptocurrency would be a top priority of his chairmanship. The nomination hearing is poised to be the latest illustration of the crypto industry’s ascendance in the Trump era, after it faced a regulatory crackdown from the SEC under President Joe Biden. Atkins, a longtime financial industry consultant and former SEC commissioner, is expected to face scrutiny from Democrats over his Wall Street ties.
