Reconciliation and Funding Update
February 11, 2025
For now, there has been limited public progress to address the upcoming March 14 government funding deadline. The Senate took the first steps to move on two reconciliation bills and House leaders continued to push for one bill.
Why it matters: Republicans will need Senate (and likely House) Democrats to avert a government shutdown. Yet, the national attention has largely been focused on the flurry of executive actions, Department of Government Efficiency (DOGE), agency shutdowns, and the reaction to all of the above.
- The reconciliation discussions are separate from the shutdown deadline, but any course will require virtually all GOP members to agree.
- It is unlikely any Democrats will join the reconciliation efforts, which tend to be a partisan effort.
The big picture: The process arguments remain largely the same. Senate Republicans want to give President Donald Trump early legislative victories with a first reconciliation bill focused on the:
- Border,
- Defense, and
- Immigration.
- Tax would come later
House leaders prefer a bill incorporating both to incentivize holdouts on tax with the trio of electoral priorities. Trump has, thus far, preferred this route.
- But the House has not been able to agree in principle on “top-line” numbers. Deficit hawks want to see a sizable $2 to $5 trillion in cuts. This would be a steep price considering the reauthorization of the 2017 tax law and the addition of Trump’s priorities, which could run well beyond $4 trillion in reduced revenue.
- Senators huddled with Trump at Mar-a-Lago last Friday in an effort to sway him to back two bills. Speaker Mike Johnson joined Trump at the Super Bowl.
- Breaking News: The House Budget Committee scheduled a markup on a reconciliation bill for Thursday, Feb. 13. At time of publication it is unclear what the scope of the markup will include.
By the numbers: Senate Budget Committee Chairman Lindsey Graham (R-SC) initiated the Senate process with an addition $340 billion in spending for defense and the border that would be “paid for” with commensurate funding cuts. Under the bill, the following committees can spend (add to the deficit)
up to the following amounts:
- Senate / House Armed Services: $150 billion
- Judiciary: $175 billion
- House Homeland / Senate Homeland Security and Gov Affairs: $175 billion
- Transportation & Infrastructure / Commerce: $20 billion
Funding cuts would come from other committees with a wide range of jurisdiction.
What’s next: The Senate Budget Committee will mark up its legislation this week, and the House GOP will aim to introduce a plan. Trump may weigh in based on his weekend conversations, or he may choose to continue to wait it out.
Contact
David McCarthy (
dmccarthy@crefc.org) with any questions.
Contact
David McCarthy
Managing Director, Chief Lobbyist,
Head of Legislative Affairs
202.448.0855
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