119th Congress: must-pass legislation vs. GOP’s high priority legislation

There are currently two critically important things Congress must do in the next few months to avoid crippling the national economy and government services.

1. FY 2025 Appropriations

At the end of the 118th Congress, instead of completing work on and approving appropriations for the remainder of the current fiscal year, GOP leadership decided to extend FY 2024 funding another couple of months. The continuing resolution that was passed expired on March 14, giving the current Congress five weeks to reach an agreement. This will have to be bipartisan since it will need to reach the 60-vote threshold in the Senate.

2. Debt Ceiling Increase or Suspension

President Trump had hoped the previous Congress would take care of this thorny issue before he took office, but there was dissension among both Democrats and Republicans, and it was dropped from the continuing resolution that kept the government funded. The debt ceiling had been suspended since June 2023 but was reinstated on Jan. 2, 2025, at $36.1 trillion. As of Jan. 21, the Treasury has been drawing on cash reserves and implementing “extraordinary measures” to avoid default.

It’s expected those measures will keep the nation out of default at least through the end of the first quarter, but lifting or suspending the debt ceiling must be done—the consequences of failing to do so would be economic havoc. This will have to be bipartisan.

There is not yet full agreement among Republicans, who hold slim majorities in both the House and Senate, as to their strategy for pursuing the implementation of President Trump’s agenda, but it is clear that they plan to use a special parliamentary tool called Budget Reconciliation to pass these items. This would allow them to pass a large legislative package with simple majorities in both the House and Senate; they would need no Democratic support, provided all of the Republicans are in agreement. There are likely four basic components of the reconciliation package, which could be passed in two separate bills (one this spring and one next fall) or “one big, beautiful bill,” as President Trump has been quoted as saying.

1. Tax Policy- The tax cuts that were implemented in the 2017 Tax Cuts and Jobs Act are scheduled to expire at the end of 2025. So, unless they are extended, many Americans would see their taxes go up in the 2026 tax year. Republicans want to extend many of those tax provisions, as well as add in some new ones, like lowering the corporate tax rate to 15% and exempting tips and overtime pay from taxes.
2. Border Security- There’s been no bigger issue for Republicans and specifically for Donald Trump than upgrading security at the Southern Border. Senate Budget Committee Chair Lindsey Graham said the committee “will be moving forward next week to give the Trump Administration’s Border Czar, Tom Homan, the money he needs to finish the wall, hire ICE agents to deport criminal illegal immigrants, and create more detention beds so that we do not release more dangerous people into the country.” He said the reconciliation bill “will be the most transformational border security bill in the history of our country.”
3. Defense Spending- While Republicans are eager to make cuts in the government’s discretionary budget, defense is one area where they want to spend more, not less. Under one proposal being floated right now, the Pentagon would get an additional $150 billion over the next 4 years through reconciliation.
4. Energy Dominance- Making America totally energy-independent is a goal shared by many Republicans and they see reconciliation as a key step toward achieving that goal. They will look to expand domestic energy production while possibly clawing back portions of the Democrats’ 2022 climate law (Inflation Reduction Act), which promoted and incentivized Green energy. The bill might also include policies to open the Arctic National Wildlife Refuge for drilling and easing environmental regulations for energy permitting.