President-elect Trump pointed to a strategic benefit of the one-bill approach to budget reconciliation that he's said he prefers during a closed-door meeting with Republican senators on Wednesday evening at the Capitol.
By combining legislation relating to both the southern border crisis and taxes into one reconciliation bill, Trump suggested that one issue could potentially force some lawmakers to make a difficult decision. For example, if a Republican doesn't support a piece of the tax component, they would also have to vote against the border provisions because they are in one measure.
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With portions of Trump's 2017 Tax Cuts and Jobs Act expiring this year, the party is looking to act quickly. But the tax debate in 2025 is expected to be more divided among Republicans than that regarding the border. In particular, there is some disagreement in the party on state and local tax (SALT) deductions, which can benefit some states more than others and have been hit by some Republicans as inefficient.
"If somebody, for example, in the House is balking because there's not SALT in the tax agreement or some other provision they want, if that also means they'd be holding out and voting against the border, it might make it harder for them to do so," Sen. John Hoeven, R-N.D., told Fox News Digital. "That's a very valid point."
While SALT was not posed as an example of this by Trump himself, it was mentioned by a GOP senator in a side conversation among other attendees as they went over the advantages of a one-bill approach, Hoeven said.
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A source familiar told Fox News that Republicans are preparing to go with Trump's one-bill preference, but they are also keeping the potential for two bills, one on the border and another to address taxes, in their back pocket in the case of any significant obstacles.
Senate Majority Leader John Thune, R-S.D., told Trump that if one bill is what he wanted, that is what they are going to try first, the source said.
A number of senators have their own preferences for two separate reconciliation bills instead, and some made their cases to Trump during the meeting. However, the conference is set to move forward with Trump's one-bill approach.
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Greenland, Canada and the Panama Canal came up during the discussion following Trump's remarks about each. Trump has recently said he wants U.S. to take back control of critical trade medium the Panama Canal, while also expressing interest in making Greenland and Canada part of the U.S.
Sources familiar told Fox News that Trump brought these up himself during the meeting, telling senators at one point that these countries "were screwing with" the U.S.
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The senators believe his approach to Canada is already managing to change the country's "behavior" and could have even contributed to the recent resignation of Canadian Prime Minister Justin Trudeau, the sources added.
