Capitol agenda: Reconciliation is revived, Thune says

After a five-week shutdown of a key Cabinet agency, the GOP’s hopes for reconciliation have been revitalized as of Tuesday morning.

Senate Majority Leader John Thune revealed in an interview Monday night that a developing Homeland Security spending agreement is giving fresh energy to the effort for another party-line bill. This legislation aims to finance immigration enforcement and possibly more.

“If we end up going down that route, we’ll try and make the most of the opportunity,” he stated to POLITICO.

Thune’s statement marks a significant shift, as he previously hesitated to support a second reconciliation bill this Congress. The concept seems to have gained approval from President Donald Trump following a meeting at the White House with GOP Senators Katie Britt from Alabama, Steve Daines from Montana, Lindsey Graham from South Carolina, and Bernie Moreno from Ohio.

Border czar Tom Homan, Stephen Miller, James Blair, and Markwayne Mullin, soon-to-be Secretary, also attended the meeting.

— The GOP’s focus: The proposed reconciliation bill would concentrate on ICE enforcement operations and, importantly for the president, incorporate elements of the SAVE America Act.

Trump agreed to separate the bills, provided that provisions from the SAVE Act are included in the reconciliation effort, according to two sources who spoke to POLITICO under anonymity.

While much of the current elections bill on the Senate floor doesn’t align with strict budget regulations, GOP senators are exploring the option of federal funding to encourage states to implement voter ID requirements and other bill aspects, according to two sources.

Republicans might find it challenging to limit themselves to this scope. Additional funding for the Iran war might be considered as a costly add-on, and conservatives in the House have their own ideas to contribute.

— Democratic tripwires: Under the terms discussed Monday night, Democrats are achieving their goal from the previous week—a vote on a bill that finances TSA, FEMA, and other DHS functions without including ICE’s contentious removal operations.

However, there are conditions. The agreement would finance the non-enforcement aspects of ICE, like Homeland Security Investigations, and the Border Patrol, as discussed by senators last week.

This could limit broad Democratic support in the Senate, but it might attract enough senators to ensure the plan’s success.

— What’s next: Both parties are working quickly to finalize an agreement before a two-week recess. Legislative text is being exchanged between appropriators, according to someone familiar with the discussions who spoke to POLITICO.

“I’m more optimistic that by the end of the week, we will fund the Department of Homeland Security,” said Senate Appropriations Chair Susan Collins (R-Maine).

What else we’re watching:

— Mullin sworn in, and his replacement: Mullin resigned from the Senate on Monday night after his 54-45 confirmation vote. The president is set to swear Mullin in as DHS secretary at 1:30 p.m. on Tuesday.

If Oklahoma Gov. Kevin Stitt announces Mullin’s replacement on Tuesday morning, the Senate plans to conduct the swearing-in the same day. Alan Armstrong, an oil executive, is anticipated to be selected to complete Mullin’s term, as first reported by NOTUS and confirmed by two informed sources.

— ‘Modern watergate’: Senate Judiciary Committee Chair Chuck Grassley (R-Iowa) is set to release new records as part of his committee’s investigation into former special counsel Jack Smith, according to an aide who was granted anonymity to describe private planning.

This release will coincide with a scheduled Senate Judiciary subcommittee hearing on Tuesday morning, led by Sen. Ted Cruz (R-Texas). The hearing draws parallels between the investigations into Trump during the Biden administration and the Watergate scandal that led to President Richard Nixon’s resignation.

Meredith Lee Hill and Hailey Fuchs contributed to this report.