House Freedom Caucus to draw battle lines for reconciliation after presenting plan to Trump

FIRST ON FOX: The conservative House Freedom Caucus is preparing to release a proposal for a planned overhaul of conservative Republican policy that would raise the debt limit by two years, or roughly $4 trillion, Fox News Digital has been told.

Republicans in Congress are preparing for a major overhaul of conservative policies through the budget reconciliation process. By lowering the threshold for passage in the Senate from 60 to 51 votes, the reconciliation allows the party that controls Congress and the White House to pass sweeping policy changes — as long as they address budget and other fiscal issues.

However, there has been some disagreement over whether to bring all of its goals — touching on border security, defense, spending cuts, tax cuts and energy — into one bill so as not to risk any item falling behind, or split the priorities into two separate pieces of legislation to ensure early victory on at least some measures.

President-elect Donald Trump said he prefers one account access but would be open to two. He also tasked Republicans with raising or suspending the debt limit, with predictions that the US Treasury will run out of funds to pay its debts by mid-June.

Members of the Freedom Caucus are among Republicans pushing for two separate bills. The plan unveiled Thursday calls for including border security, defense and sharp spending cuts in the first bill.

Those cuts would then be used to offset tax credits that were extended in the second bill, Fox News Digital was told.

Conservative lawmakers presented the plan to Trump last Friday at Mar-a-Lago, but it’s unclear how he responded.

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Senate Majority Leader John Thune, RS.D., previously supported the approach of the two bills in public comments.

Opponents of that planwhich includes Republicans on the House Ways and Means Committee, warned that leaving Trump’s tax cuts for another bill would guarantee that provisions he passed during his previous term would expire at the end of the year, raising taxes for millions of Americans.

Committee Chairman Jason Smith, R-Mo., previously pointed out to FOX Business anchor Maria Bartiromo that two reconciliation bills have not been passed in one term since the 1990s.

However, GOP negotiators have not decided whether to include debt limit actions in their reconciliation bill, with both measures known to require heavy political maneuvering.

The expected Freedom Caucus plan is a way for fiscal hawks who have traditionally scorned debt limit measures to agree to it.

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That same group is also concerned that putting all of the agenda items into one bill will not result in enough cuts to offset the additional spending.

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With two House Republicans leaving for the Trump administration on Jan. 20, Speaker Mike Johnson, R-La., will have to make do with a very slim majority until a special election expected in April.

Until then, just one Republican “no” vote will be enough to derail any bill that doesn’t win Democratic support.

Fox News Digital has reached out to Trump’s transition team and the House Freedom Caucus for comment.