Senate GOP Plows Ahead With Budget Plan After Trump Backs Rival House Version

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The Senate plans to pass a budget resolution that would entail two reconciliation bills. President Donald Trump, by contrast, says he only wants one bill.

WASHINGTON—The Republican Conference of the U.S. Senate will proceed with its own budget plan to fund President Donald Trump’s policy initiatives, even after Trump himself rejected the plan on Feb. 19.

To fund many of Trump’s administrative and financial plans—such as constructing a wall along the U.S. border with Mexico, removing all illegal immigrants from the United States, and extending provisions of the Tax Cuts and Jobs Act (TCJA) of 2017—Congress must enact new laws that authorize funding.

The regular procedure in the Senate to pass such bills would require 60 votes in favor of invoking “cloture,” so as to limit debate and end any “filibuster” running out of the clock by opponents. Given that Republicans have just 53 seats in the Senate, support of at least seven Democratic senators will be needed to invoke cloture—an unlikely outcome given the partisan nature of ongoing budget fights in Congress.

In lieu, Republicans in Congress have turned to the “budget reconciliation” process as an alternative mechanism to enact such bills. The process, albeit restrictive, allows Congress to pass financial legislation on which debate in the Senate is limited, thereby obviating the 60-vote cloture requirement.

Reconciliation bills can only affect taxation, spending, and public borrowing—thereby excluding pure policy changes, such as reforming immigration laws—and must not increase the federal budget deficit after 10 years, known as the “Byrd Rule.”

In order to begin a reconciliation process, the Senate and House of Representatives must concurrently pass a “budget resolution” for that Fiscal Year, which states the issue-areas where spending will be increased or cut, and instructs committees to make recommendations for the final bill.

It is at this initial stage where Republicans in the Senate and House have had the most disagreements, which concern strategy for the process.

The Senate seeks to pass two reconciliation bills for this Fiscal Year, with the first one focused on increasing spending on border security and the U.S. military. The reason for this approach is due to a lack of consensus over tax cuts, specifically concerning efforts to extend the TCJA’s provisions.

By Arjun Singh

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