Graham's plan for Trump tax cuts

Business & Economy

The Big Story

Graham rolls out plan to tackle Trump agenda

Senate Budget Committee Chair Lindsey Graham (R-S.C.) rolled out a resolution laying the groundwork for Republicans to ramp up work on President Trump’s agenda.

Senate Republicans are seeking to pass a special budget reconciliation bill that would provide $175 billion to secure the southern border and $150 billion to beef up national defense.

If the Senate and House adopt the resolution, which Graham plans to mark up Wednesday morning, it would allow Senate Majority Leader John Thune (R-S.D.) to bring a reconciliation package to the Senate floor focused on border security, energy reform and defense spending that would be immune from a Democratic filibuster.

The legislation would increase annual spending by $85.5 billion and be fully paid for by $85.5 billion in budgetary offsets.

Graham did not reveal what spending cuts would be used to pay for the proposal, leaving it for Republican leaders and committee chairman to decide at a later date.

The proposal calls for finishing the wall along the U.S.-Mexico border and upgrading technology for ground and aerial support to secure the border.

It also calls for increasing the number of detention beds to hold migrants arrested in the United States and to increase the number of Immigration and Customs Enforcement officers to “conduct mass detention and removal of criminal illegal aliens,” according to a summary provided by Graham’s office.

Funding would go toward increasing the number of Border Patrol agents to “regain operational control of the border” and assistant U.S. attorneys to prosecute violent crime, organized crime and immigration-related offenses. It would also fund additional immigration judges to clear the backlogs in immigration courts.

House Republicans hope to unveil their own budget measure, with members in the lower chamber pushing for an extension of tax cuts to be included in the first major bill Congress advances under Trump.

The Hill’s Alex Bolton has more here.

Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.

Did someone forward you this newsletter? Subscribe here.

Essential Reads

Key business and economic news with implications this week and beyond:

Musk says he’ll bring back DOGE staffer under fire for racist posts

Elon Musk said Friday he will rehire a former Department of Government Efficiency (DOGE) staffer who resigned after several of the aide’s racist social media posts were exposed.

Full Story

Trump delayed tariffs on low-cost packages from China

President Trump signed an executive order this week that temporarily prevents low-cost packages from China from being slapped with his new tariffs.

Full Story

Trump to direct Musk to review Pentagon, Education spending

President Trump on Friday said he plans to direct Elon Musk to review spending at the Defense and Education departments as the new administration works to overhaul the federal government.

Full Story

Trader Joe’s limits egg purchases at all stores

Trader Joe’s patrons nationwide have taken to social media to comment on a new policy that limits the amount of eggs shoppers can buy.

Full Story

Tax Watch

Welcome to Tax Watch, a new feature in The Hill's Business & Economy newsletter focused on the fight over tax reform and the push to extend the 2017 Trump tax cuts this year.

Republicans to hunker down Super Bowl weekend amid stalemate

Speaker Mike Johnson (R-La.) said House Republicans will continue discussions into Super Bowl weekend over how to advance President Trump’s tax agenda.

“We may have a little bit more work on Saturday and Sunday at the Super Bowl, but we are very, very close, and I’m very optimistic and happy with how things are going,” Johnson told reporters on Thursday.

Johnson expressed optimism that Republicans could begin marking up a budget resolution as early as next week.

“We’re continuing to make progress,” House Majority Leader Steve Scalise (R-La.) told reporters. “Obviously, you know, get to a point where we can bring this to the Budget Committee is our goal for next week, and we’re going to keep working tomorrow through the weekend to iron out the final details.”

Johnson is expected to attend the Super Bowl, along with Trump, in New Orleans.

The development comes as lawmakers are racing to complete the final details of the sprawling package as the Senate threatens to move on its contrasting strategy.

The Hill’s Emily Brooks and Mychael Schnell have more here.

COMING UP

The Hill's Evening Report breaks down the day's big political stories and looks ahead to tomorrow. Click here to sign up & get it in your inbox

The Ticker

Upcoming news themes and events we're watching:

The consumer price index (CPI) for January drops next Wednesday at 8:30 a.m. ET.

In Other News

Branch out with more stories from the day:

Trump says US Steel will get investment from Nippon Steel, instead of being bought by it

WASHINGTON (AP) — President Donald Trump on Friday suggested that Nippon Steel would no longer buy …

Full Story

Good to Know

Business and economic news we've flagged from other outlets:

DOGE targets Consumer Financial Protection Bureau as Musk says ‘RIP’ (The Washington Post)
The Mood of the American Consumer is Souring (The Wall Street Journal)
The Super Bowl Ads, Ranked (The New York Times)

What Others are Reading

Top stories on The Hill right now:

Trump to name himself new Kennedy Center board chair

President Trump said Friday he would end the terms of multiple members of the Kennedy Center board and make himself chair of a new board, putting himself at the helm of the Washington, D.C., cultural institution. Read more

Trump revokes Biden’s security clearance: ‘Joe, you’re fired’

President Trump said he will be revoking former President Biden’s security clearance and stopping the former commander-in-chief’s daily intelligence briefings. Read more