The GOP’s budget battle begins

​Senate Majority Leader John Thune (R-SD) speaks with reporters following the Senate Republicans' weekly policy lunch on Capitol Hill in Washington, D.C., U.S., March 11, 2025.
Senate Majority Leader John Thune (R-SD) speaks with reporters following the Senate Republicans' weekly policy lunch on Capitol Hill in Washington, D.C., U.S., March 11, 2025.
REUTERS/Nathan Howard/File Photo
House Speaker Mike Johnson and Senate Majority Leader John Thune will meet on Tuesday to try to bridge the massive schism between budget reconciliation packages in the House and Senate. At stake: Donald Trump’s policy agenda.

Wait, didn’t Congress just pass a budget? Well, kinda.Two weeks ago, Congress passed a continuing resolution, a bill to keep the government’s coffers at current levels until the end of September. But that didn’t allocate additional funds for Trump’s legislative goals – like tax cuts and increases in border and defense spending – which require Congress to pass a budget reconciliation package.

Johnson wants to pass the reconciliation before Congress leaves for Easter Break in two weeks so that he can have the bill on Trump’s desk by Memorial Day.

Key details: Budget reconciliations only require a simple majority to pass. The Republicans have that in the House and the Senate, so they don’t need Democratic votes. The Byrd Rule limits what can be in the bill to just things that affect spending, which in theory keeps reconciliation from being used as a loophole for passing nonbudgetary policies without bipartisan support. Still, parties have been known to push the envelope to get things passed that wouldn’t otherwise.

But right now, each chamber is backing very different bills. The House’s includes $1.5 trillion in spending cuts – which many in the Senate worry will affect Medicaid – and $4.5 trillion for tax cuts. Meanwhile, the Senate’s bill is far less ambitious: It calls for less spending and fewer cuts and is heavily focused on defense, allocating $325 billion in new military and border security spending.

And the debt ceiling is looming. The House’s reconciliation package would increase the debt limit by $4 trillion, meaning that Congress would also have to vote to raise the debt ceiling, something that Senate Republicans have opposed in the past but may cave on, especially if Trump starts applying pressure to get the bill over the finish line.

More from GZERO Media

A 3D-printed miniature model depicting US President Donald Trump, the Chinese flag, and the word "tariffs" in this illustration taken on April 17, 2025.

REUTERS/Dado Ruvic

The US economy contracted 0.3% at an annualized rate in the first quarter of 2025, while China’s manufacturing plants saw their sharpest monthly slowdown in over a year. Behind the scenes, the world’s two largest economies are backing away from their extraordinary trade war.

A photovoltaic power station with a capacity of 0.8 MW covers an area of more than 3,000 square metres at the industrial site of the Chernobyl Nuclear Power Plant, Kyiv region, Ukraine, on April 12, 2025.
Volodymyr Tarasov/Ukrinform/ABACAPRESS.COM

Two months after their infamous White House fight, the US and Ukraine announced on Wednesday that they had finally struck a long-awaited minerals deal.

Indian paramilitary soldiers patrol along a road in Srinagar, Jammu and Kashmir, on April 29, 2025.
Firdous Nazir via Reuters Connect

Nerves are fraught throughout Pakistan after authorities said Wednesday they have “credible intelligence” that India plans to launch military strikes on its soil by Friday.

Palestinian Hamas and Islamic Jihad fighters form a human chain in front of the crowd gathered near the family home of slain Hamas leader Yahya Sinwar, where the Hamas militant group prepares to hand over Israeli and Thai hostages to a Red Cross team in Khan Yunis, on January 30, 2025, as part of their third hostage-prisoner exchange..
Photo by Majdi Fathi/NurPhot

Israel hunted Yahya Sinwar — the Hamas leader and mastermind of the Oct. 7 attack — for over a year. He was hidden deep within Gaza’s shadowy tunnel networks.

A gunman stands as Syrian security forces check vehicles entering Druze town of Jaramana, following deadly clashes sparked by a purported recording of a Druze man cursing the Prophet Mohammad which angered Sunni gunmen, as rescuers and security sources say, in southeast of Damascus, Syria April 29, 2025.
REUTERS/Yamam Al Shaar

Israel said the deadly drone strike was carried out on behalf of Syria's Druze community.

Britain's King Charles holds an audience with the Prime Minister of Canada Mark Carney at Buckingham Palace, on March 17, 2025.

Aaron Chown/Pool via REUTERS

King Charles is rumored to have been invited to Canada to deliver the speech from the throne, likely in late May, although whether he attends may depend on sensitivities in the office of UK Prime Minister Keir Starmer.

Getting access to energy, whether it's renewables, oil and gas, or other sources, is increasingly challenging because of long lead times to get things built in the US and elsewhere, says Greg Ebel, Enbridge's CEO, on the latest "Energized: The Future of Energy" podcast episode. And it's not just problems with access. “There is an energy emergency, if we're not careful, when it comes to price,” says Ebel. “There's definitely an energy emergency when it comes to having a resilient grid, whether it's a pipeline grid, an electric grid. That's something I think people have to take seriously.” Ebel believes that finding "the intersection of rhetoric, policy, and capital" can lead to affordability and profitability for the energy transition. His discussion with host JJ Ramberg and Arjun Murti, founder of the energy transition newsletter Super-Spiked, addresses where North America stands in the global energy transition, the implication of the revised energy policies by President Trump, and the potential consequences of tariffs and trade tension on the energy sector. “Energized: The Future of Energy” is a podcast series produced by GZERO Media's Blue Circle Studios in partnership with Enbridge. Listen to this episode at gzeromedia.com/energized, or on Apple, Spotify,Goodpods, or wherever you get your podcasts.