Scoop: Key conservative caucus draws red line on House budget plan
House GOP’s Largest Caucus Draws Red Line in Budget Talks
In a recent development, the Republican Study Committee’s (RSC) steering group, the largest caucus within the House GOP, has set a red line in congressional Republicans’ budget talks. The RSC is insisting that any budget reconciliation plan must ultimately lead to reductions in the U.S. deficit, which occurs when the federal government’s spending exceeds its revenues in a given fiscal year.
The official position of the RSC, obtained exclusively by Fox News Digital, emphasizes the importance of reducing the federal budget deficit for national security. The RSC leadership met behind closed doors at the House Republicans’ annual retreat, held at Trump National Doral golf course in Florida, to discuss their stance on reconciliation and other fiscal deadlines.
Led by Rep. August Pfluger, the RSC has been actively negotiating on how to leverage their razor-thin majorities in the House and Senate to pass substantial conservative policy changes through the budget reconciliation process. Reconciliation allows a party in control of both congressional chambers to enact sweeping changes with a 51-seat simple majority, as opposed to the usual 60-vote threshold for Senate passage.
With 178 members, the RSC serves as the House GOP’s largest inter-conference group and acts as a key policy advisor on various matters. Rep. August Pfluger, a Republican from Texas, is leading the group this year, following in the footsteps of Rep. Kevin Hern, who recently assumed the role of House Republican Policy Committee chair.
House Republicans face a challenging task this year as they strive to unite for congressional leaders’ preferred timeline for the reconciliation process. Speaker Mike Johnson has indicated plans for a House-wide vote on an initial budget resolution in late February. However, with Rep. Elise Stefanik expected to depart for the Trump administration, House Republicans will need to ensure no defections to pass legislation along party lines. In the Senate, the GOP can afford to lose two lawmakers and still meet the 51-vote threshold.
President Donald Trump has outlined specific policies he wants Republicans to include in their reconciliation legislation, such as no taxes on tips or overtime pay and increased funding for border security. To avoid adding to the federal deficit, Republicans are exploring ways to achieve spending cuts, including implementing work requirements for federal benefits and rolling back progressive regulations enacted during the Biden administration.
Speaker Mike Johnson has expressed the goal of producing a deficit-neutral or deficit-reducing final reconciliation bill. The U.S. currently faces a cumulative deficit of $710 billion in fiscal year 2025, an increase of $200 billion from the previous year. Federal revenues have decreased by 2% compared to the same period in the previous fiscal year.
In conclusion, the House GOP’s largest caucus is taking a firm stand on budget reconciliation, emphasizing the need to reduce the federal deficit for the sake of national security. With key policy decisions looming on the horizon, Republican lawmakers are working diligently to craft a reconciliation bill that is fiscally responsible and aligns with conservative principles.
