LET US SPEND A MINUTE SEPARATING SIGNAL from noise here this afternoon when it comes to Covid relief talks between @SpeakerPelosi and @stevenmnuchin1
@SpeakerPelosi@stevenmnuchin1 NOISE: @SpeakerPelosi saying she is “hopeful” for an agreement to emerge from Covid relief talks. That hope, she said, is based on “the needs of the American people.”
@SpeakerPelosi@stevenmnuchin1 SIGNAL: PELOSI saying at her news conference today that the two sides are “far apart” on state and local funding; they have fundamental disagreements about business tax provisions and the the Child Income Tax Credit; …
@SpeakerPelosi@stevenmnuchin1 more SIGNAL: they are in the midst of a major “values debate” and “dollar debate” with the administration; she does not believe some bill is better than no bill; and the GOP offer is not a “half a loaf, this is the heel of the loaf,” as she told Bloomberg.
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After speaking all day to top House Republicans, here's are the options for reconciliation.
stay the course -- and pull a rabbit out of a hat.
Johnson is an optimist. You gotta give him that. The Louisiana Republican has maintained that the mess that we’re seeing right now is all part of what he calls the “deliberative process.” Fair enough. There’s certainly a lot of deliberating going on.
But there’s a path — a narrow path — for House Republicans to get a budget resolution allowing “one big beautiful bill” to move forward.
Following a very long meeting in the speaker’s office Tuesday night that included GOP leadership, committee chairs and some of the hardliners, there were signs of progress, although no agreement yet.
“I think when you look at where we are, we’re close to a trillion [dollars in cuts] and still working,” House Majority Leader Steve Scalise told reporters afterward.
Scalise added that House GOP leaders “are focused on” trying to mark up a budget resolution next week.
They’ve also directed all the committees involved in this process to come up with more spending cuts. “We’re working on details for each committee,” Scalise said. “But we have gone back to each committee to increase those numbers. We’re not done on it.”
Plus, Republicans will think expansively about how to count savings — DOGE, projected 3% economic growth and a juiced economy from slashing regulations.
Then there’s Trump.
Can Trump, who has had limited legislative success during his first term, get Reps. Chip Roy (R-Texas) and Ralph Norman (R-S.C.) to back Johnson’s plan? Trump hasn’t yet leaned on lawmakers to get the reconciliation process going. By next week, he may have to.
Switch to two bills.
Hold onto your hat, Rep. Jason Smith (R-Mo.). There are House Republicans talking about the Budget Committee switching course and marking up the dual-track reconciliation process that Smith, the Ways and Means Committee chair, has railed against for months.
Trump says he doesn’t care if there’s one bill or two bills as long as his agenda gets approved. There are plenty of senior aides in the White House who want two bills. And the House Freedom Caucus wants two also.
The first reconciliation package would have defense spending, energy policy and border security provisions. The second reconciliation package — the tax-cut portion — would be punted until later. When exactly is unclear.
Smith doesn’t like the two-bill approach. In his view, that puts tax cuts at risk. Yet if the Budget Committee remains stuck, House Republicans may not have a choice.
Chip Roy, the floor is yours.
There’s always an inclination in House Republican leadership to say something like this: “OK, Freedom Caucus. If you think your idea is so great, give it a shot, and let’s see how it goes.”
Play this out with us for a moment. What if Johnson tells Roy, Norman and the other conservative holdouts that they should write whatever budget resolution they want, try to push it through the Budget Committee and the full House, and then see what the Senate will do with it?
Of course, a Freedom Caucus-favored package may not get through the Budget Committee. If it does, it could fail on the House floor. And it will certainly get ripped to shreds in the Senate.
But there’s utility in that exercise to show that hardliners need to drop their draconian spending-cut demands and embrace a bill that can actually become law. That’s the real goal of legislating, right?
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