By David Morgan
DORAL, Florida, March 11 (Reuters) – U.S. House Republicans hope to enact one last piece of signature legislation addressing affordability concerns to try to set them apart from Democrats before the November midterm elections, a time when voters traditionally punish the party of the sitting president.
But unifying the party, which holds a slim 218-214 majority in the House, is proving challenging even as they agree that bringing down the cost of living for American families is their No. 1 priority. Concerns about cost may only grow in salience as retail gasoline prices, the most visceral signal of price fluctuations to regular Americans, have spiked to near-two-year highs following the joint U.S.-Israeli attacks on Iran.
Party leaders hope to agree on a legislative package on affordability issues like healthcare and housing that would be able to pass the Senate by a simple majority through a maneuver called “budget reconciliation.” This would allow them to circumvent Democrats and that chamber’s 60-vote filibuster, yet the near-unanimity required is proving elusive.
Legislation on easing housing prices by cutting regulations, encouraging more factory-built housing and limiting how many units investment groups can buy is making progress in Congress, raising hopes of bipartisan success. But members of the hardline House Freedom Caucus have voiced opposition to the legislation, suggesting that House Speaker Mike Johnson may ultimately have to steer a more partisan path through the reconciliation process.
“I would have loved to unveil that package this weekend. But we’re not there yet, because I’ve got a few pockets of people who have concerns about different aspects of it,” Johnson told reporters during a Republican retreat this week at Trump’s Doral golf club near Miami, where lawmakers gathered behind closed doors in hopes of reaching a consensus.
Some top House Republicans doubt their party can find the votes to advance a reconciliation bill focused on affordability issues ahead of the Nov. 3 election.
“I would love that. But I just don’t think it will ever happen,” said Representative Jason Smith, chairman of the House Ways & Means Committee, a key architect of last year’s tax legislation.
“I know the members of my conference,” the Missouri Republican added. “If two Republicans vote against this bill, it won’t pass, because we have a smaller majority.”
TOUTING LAST YEAR’S BILL
Republicans are currently promoting key provisions Congress passed last year as their affordability contribution to American families: tax cuts on tip income and overtime pay, an expanded child tax credit and the creation of Trump savings accounts.
Last year’s bill sought to offset those policies as well as tax breaks for businesses and wealthy individuals by cutting nearly $1 trillion from the Medicaid healthcare program for lower-income Americans over 10 years and more than $180 billion from food assistance for needy families.
Those Americans are more sensitive to higher fuel prices as they have smaller savings balances and less discretionary income. Studies have shown that the rising cost of gasoline can have an outsized effect on household inflation expectations. The retail price of gasoline surpassed $3.50 a gallon on average on Wednesday.
Lawmakers say they are eyeing hundreds of billions of dollars in spending cuts from other segments of the social safety net including unemployment insurance, supplemental security income and temporary assistance for needy families, claiming the programs are subject to “waste, fraud and abuse.”
That effort has stirred concern among moderates who face tight reelection bids in races that will require support from outside the Republican fold.
“More moderate members that are reflective of the more competitive districts have a higher threshold of sensitivity,” said House Budget Committee Chairman Jodey Arrington, a Texas Republican and strong advocate for the reconciliation process.
(Reporting by David Morgan; editing by David Gaffen)
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