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

The conservative House Freedom Caucus is gearing up to unveil a proposal for the upcoming conservative policy overhaul that Congressional Republicans are planning to implement through the budget reconciliation process. This proposal includes raising the debt limit by two years or approximately $4 trillion, Fox News Digital has learned.

The budget reconciliation process allows the party in control of Congress and the White House to pass significant policy changes by lowering the threshold for passage in the Senate from 60 votes to 51. This process is limited to matters dealing with budgetary and fiscal issues.

However, there is a debate within the Republican party on whether to include all their priorities – such as border security, defense, spending cuts, tax cuts, and energy – in a single bill or to split them into two separate pieces of legislation. Some members, including the Freedom Caucus, are advocating for two separate bills to ensure early victories on at least some measures.

The proposed plan by the Freedom Caucus includes incorporating border security, defense, and substantial spending cuts in the first bill. These cuts will then be utilized to offset tax breaks that will be extended in the second bill. The group presented this plan to President-elect Donald Trump at Mar-a-Lago last Friday, although his response remains unclear.

Senate Majority Leader John Thune has previously expressed support for a two-bill approach, while opponents, including Republicans on the House Ways & Means Committee, have warned that separating Trump’s tax cuts into a second bill could lead to expiration by the end of the year, resulting in tax increases for many Americans.

The House Freedom Caucus, known for its conservative fiscal stance, is also considering action on the debt limit, which they have traditionally opposed. This proposed plan is a compromise for the group to agree to raise or suspend the debt limit.

With the possibility of two House Republicans leaving for the Trump administration on January 20, Speaker Mike Johnson will be navigating a fragile majority until special elections are held in April. This means that just one Republican vote against any legislation could derail it if it does not receive Democratic support.

As negotiations continue, the Republicans are still undecided on whether to include action on the debt limit in the reconciliation bill. This decision, along with the overall strategy for the conservative policy overhaul, will require careful political maneuvering.

Fox News Digital reached out to the Trump transition team and the House Freedom Caucus for comment, and more details on the proposed plan are expected to be revealed in the coming days. Elizabeth Elkind, a politics reporter for Fox News Digital, is leading the coverage of the House of Representatives and can be followed on Twitter at @liz_elkind for the latest updates.