The Senate is poised to take the lead over House Republicans next week in enacting President Trump's agenda through the budget reconciliation process. Senate Budget Committee Chairman Lindsey Graham unveiled a plan to push for a committee vote next week on an initial bill, followed by a second reconciliation bill later this year. This two-bill strategy differs from the House's preferred single-bill approach.

The first Senate bill would encompass Trump's priorities on border security, energy, and national defense, while the second would focus on extending the Tax Cuts and Jobs Act (TCJA). This move comes as House Republicans grapple with internal disagreements over spending cuts to offset the costs of Trump's proposals. A House vote on a budget resolution, initially planned for this week, is now expected next week.

The Senate's action would require the House to address the Senate's version of the bill rather than originating their own. This shift to a two-bill reconciliation plan contrasts with the preference of the House Ways & Means Committee and House GOP leadership, who favor a single bill to address all priorities at once, including the expiring TCJA provisions. Concerns exist about the feasibility of passing two reconciliation bills in a single year, a feat not accomplished since the 1990s.

While former President Trump has expressed a preference for a single comprehensive bill, he has indicated openness to a two-bill approach. Senator Graham has been in discussions with House Freedom Caucus leaders, who support the two-bill strategy. The reconciliation process allows the ruling party to bypass the 60-vote threshold in the Senate, requiring only a simple majority, but the narrow Republican margins in both chambers leave little room for dissent.

Disagreements within the House Budget Committee regarding the extent of spending cuts have caused delays. Fiscal conservatives are pushing for a baseline of at least $2 trillion in cuts and are seeking a concrete plan from House GOP leadership. Multiple House Republicans have expressed frustration with the potential for the Senate to preempt their actions, fearing a loss of control over the process and the level of spending cuts.

House Speaker Mike Johnson has previously stated that the House would initiate the reconciliation process. However, the Senate's move to act first could force the House to react to the Senate's bill. This inter-chamber maneuvering highlights the challenges faced by the Republican party in advancing their legislative agenda with slim majorities and internal divisions.