As noted last month, Congressional Republicans are planning an ambitious strategy using budget reconciliation early in the 119th Congress. It is unclear if they will attempt to pass one bill or two separate packages. Initial reports suggested a two-bill approach, with an initial defense, energy, and border package in the first month of the new administration, followed by a second package that would lift the debt limit and renew the 2017 tax cuts that are scheduled to expire at the end of 2025.

President-elect Trump and House Speaker Mike Johnson (R-LA) prefer a single reconciliation package, while Senate GOP leaders generally prefer the two-pronged approach. Republican senators met with Trump earlier this week to discuss how to advance his agenda through Congress and the budget reconciliation process.

The reconciliation process allows for expedited consideration of certain changes in law related to spending, revenue, and the debt limit. It allows the Senate to advance legislation more easily, as it cannot be filibustered. The process was first made available by the 1974 Congressional Budget and Impoundment Control Act. It has been used 23 times since it was first used in 1980; most recently it was used to pass the 2022 Inflation Reduction Act. For more information about the budget reconciliation, visit the Congressional Budget Office.

In the House, Majority Leader Steve Scalise suggested earlier in the week that it may take several weeks for congressional leaders to agree on a strategy. "We're moving forward under the guise of one bill," Scalise said on Tuesday. "Obviously, how we do it is a discussion, but what we're doing is not under discussion. Everybody's focused on the same thing."

"Once we get into February, we're going to be bringing a budget resolution to the floor and it's going to lay out all the things that are going to be in that bill," Scalise said. "So, by February you'll know the definitive answer."

Senator John Hoeven (R-ND) addressed the difference in strategy, but not policy, in remarks late this week. “Ultimately, if the House has to do it as one bill, we’ll do it as one bill. So, it’s not like it’s mutually exclusive . . . We’ll get as far as fast as we can, and that might help.”

Stay tuned for future developments on the reconciliation package(s) and other legislative updates.