Overview

• Senate Republicans are pushing a two-step strategy to first pass a border security bill, followed by a tax package, to accommodate a narrow House majority and President-elect Trump's priorities.
• The proposed border bill would allocate up to $85 billion for measures like border wall construction and immigration enforcement, funded by oil and gas revenues and cuts to Inflation Reduction Act programs.
• House Republicans, led by Ways and Means Chair Jason Smith, prefer combining border security, tax reforms, and energy measures into a single legislative package, citing concerns about vote dynamics and efficiency.
• Internal GOP divisions include disagreements over offsets for tax cuts, the scope of proposed tax reforms, and whether to include contentious issues like Medicaid cuts or state and local tax deduction caps.
• The tight timeline to pass a tax bill before the 2025 expiration of Trump-era tax cuts adds pressure, with fears that delays or intra-party conflicts could derail the legislative agenda.