Republicans Aim for Comprehensive Legal Reforms with Congress Control
The Republican Party is on the brink of controlling both the Senate and the House of Representatives, preparing to advance a comprehensive policy agenda that includes tax and spending cuts, rollbacks of energy regulations, and increased border security measures. This potential shift in legislative power implies that Republicans may have the ability to implement their policies without significant opposition for the first time in eight years.
The Republicans have secured a 52-48 majority in the U.S. Senate and are on the path to increasing their presence in the House, although results for 51 seats are still pending. Among the party's early priorities are the extension of the tax cuts introduced during Donald Trump's presidency in 2017, funding for the U.S.-Mexico border wall, reductions in unspent funds allocated by Democrats, the elimination of the Department of Education, and curtailing the influence of regulatory bodies such as the Consumer Financial Protection Bureau.
These policy proposals, particularly tax cuts like the extension of the 2017 tax reductions and the elimination of taxes on tips, overtime, and Social Security benefits, could potentially add an estimated $7.5 trillion to the national debt over the next decade, according to the nonpartisan Committee for a Responsible Federal Budget. The federal deficit has already reached $1.833 trillion in the fiscal year 2024, and interest on the debt surpassed $1 trillion for the first time.
House Speaker Mike Johnson has expressed readiness to begin efforts that reflect the party's willingness to implement its agenda. Trump's influence on the party's direction was significant even during his absence from office, and it is expected to grow with his return to the Oval Office.
Majority Leader Steve Scalise indicated that Republicans are coordinating with Trump to swiftly implement a bold conservative agenda, aiming to replicate the economic growth seen in the early years of Trump's first term. The party argues that further tax cuts will sustain the trend of increased federal tax revenues, potentially helping to reduce the deficit.
However, the revenue growth the Republicans reference is attributed to inflation and economic expansion, indicating a decline when considering the size of the economy. Critics like Marc Goldwein, senior policy director at the CRFB, argue that contrary to Republican claims, Trump's tax cuts actually reduced tax revenues.
Despite their majority, Republicans may face legislative challenges due to the Senate's filibuster rule, which requires a 60-vote majority for most legislation to pass. A procedure known as "budget reconciliation" allows for budget-related subjects to be passed by a simple majority, but its scope is limited to proposals directly related to revenue and spending.
Former Senate Republican leader Mitch McConnell maintained the filibuster rule despite pressure to abolish it during Trump's previous term. Likely successors John Thune and John Cornyn have expressed their intent to preserve the filibuster, but they have not yet faced direct pressure from Trump's renewed power position. McConnell recently reaffirmed his belief that the filibuster remains secure.
The expectation of the Republican Party controlling Congress may signal a significant period of legislative activity that could reshape key aspects of U.S. policy and governance.