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Republican fiscal hawks are raising concerns that key Trump-era tax policies could expire at the end of 2025 if congressional leaders proceed with a plan to divide a major conservative budget package into two parts.
Reconciliation—a legislative process allowing bills on taxes, spending, and the debt limit to bypass the Senate’s 60-vote threshold and pass with a simple majority of 51 votes—is typically used only once per year. However, incoming Senate Majority Leader John Thune, R-S.D., has proposed splitting reconciliation priorities into two bills: one focused on border security and defense and the other on implementing President-elect Donald Trump’s tax policies. This approach, also supported by Trump adviser Stephen Miller, has sparked concern among Republicans on the House Ways & Means Committee, including Chairman Jason Smith, R-Mo.
These lawmakers worry the plan could jeopardize efforts to preserve the 2017 Tax Cuts and Jobs Act, a key achievement of the Trump administration.
“I think because we’ve already had some of the provisions expire or sunset, and the remainder of the legislation expires at the end of 2025, that waiting toward the second half of the year puts a lot of it at risk. And there’s no way we can allow these rates to expire,” Rep. Nicole Malliotakis, R-N.Y., told Fox News Digital. “Americans across the board will see a tax increase, and it really jeopardizes our quest to bring manufacturing home.”
Malliotakis also expressed concern over the Republicans’ narrow majority in Congress. “I do get nervous that, you know, one person can hold it up, or two people could hold it up, and I think it’s best to try to do it as early as possible. I think that’s a belief that’s shared by many of the members on Ways & Means,” she said.
Smith highlighted on Fox Business’ Mornings With Maria that Congress has not passed two reconciliation bills in the same year since 1997.
“I am saying we need a reconciliation bill that has border, energy, permitting, and tax. You put all four of those things together, we can deliver on that,” Smith said. He also emphasized to Fox News Digital, “My focus all along is to make sure that we are best positioned to deliver on President Trump’s tax proposals and policies.”
The proposal has created tension among top Republicans tasked with shaping fiscal policy, despite their shared commitment to advancing Trump’s agenda.
Rep. Greg Murphy, R-N.C., praised Smith’s efforts but acknowledged the challenges posed by the slim majority. “I think it is a big challenge. We have a very slim majority, and there are at least, I believe, two people, if not three of the Republicans, who voted against it are still here,” he said.
Supporters of the two-track plan, like Thune, argue that tax policy is complex and requires more time. House Speaker Mike Johnson, R-La., told Special Report host Bret Baier, “There probably will be at least two reconciliation packages. So, the determination right now is where does the tax piece fit and do we do that first out of the gates, or do you wait a couple of months to get all that done? Because it can be very complicated.”
House Freedom Caucus Chairman Andy Harris, R-Md., echoed this sentiment, saying, “I think we need to prove to the American people that we can actually defend our borders… The bottom line is I think they need to be on almost parallel tracks. But I do believe that taxes are much more complicated.”
A senior House GOP aide, however, questioned the complexity. “It’s confusing—given that extending the Trump tax cuts has been on the agenda for seven years and is a central campaign promise of [Trump’s], how can including them in a reconciliation bill require extra time and consideration by Senate Republicans, many of whom have already pledged their support?” the aide asked.
If Republicans fail to act, Americans could face higher taxes. Ways & Means member Rep. Adrian Smith, R-Neb., acknowledged that separating the tax provisions from the first reconciliation bill “could be more difficult” but expressed confidence in GOP unity.
Rep. Ron Estes, R-Kan., also voiced support for a single reconciliation bill, stating it would be “a much better solution for us to work and get that process done.” Meanwhile, Rep. Drew Ferguson, R-Ga., remained optimistic despite the debate, saying, “I think this reconciliation process will be very different than what we did back in 2017, because I think members are better prepared, committees are better prepared, and I think the president’s going to be much better prepared. So I wouldn’t get too worked up over a division of the plans right now.”
The debate offers a glimpse into how Republicans will navigate legislative priorities when they hold control of both Congress and the White House next year.
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