GOP Senators Push to Expand Budget Bill Over Iran Economic Fears
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- Iran announced over the weekend it would keep the Strait of Hormuz closed, raising the prospect of high fuel prices through Election Day and triggering fresh GOP anxiety about the political fallout.
- John Thune acknowledged Republicans could do more in a new budget reconciliation bill to address the economy, telling reporters he's "certainly open" to expanding it beyond its current narrow focus on immigration enforcement funding.
- John Kennedy warned on Fox News's "The Big Weekend Show" that Republicans will lose the midterms if they fail to address cost-of-living concerns, framing the internal budget debate as a choice between a "skinny" and "chunky" reconciliation package.
- Ted Cruz has floated using the reconciliation bill to index capital gains taxes to inflation, arguing it would have a "massive positive stimulus effect" and help with housing affordability, while cautioning leaders against repeating the 2018 midterm mistake.
- John Cornyn, who is running for reelection against a tough primary challenger, said he hopes the Iran situation stabilizes so Republicans can pivot to pocketbook issues in the summer and fall.
- The current reconciliation package is the GOP vehicle for funding ICE and Border Patrol over the next 3½ years; Thune said Senate Republicans would discuss potential expansion Tuesday but warned it could be difficult to build consensus in both chambers.
Why it matters: The internal GOP fight between a 'skinny' and 'chunky' reconciliation approach carries real midterm stakes: expanding the bill gives vulnerable senators like Cornyn more campaign ammunition, but risks bogging down the must-pass immigration funding vehicle that leadership prioritized. With Thune signaling openness but warning of consensus trouble in both chambers, Tuesday's budget discussion is the first concrete test of whether Republicans can pivot from foreign crisis to kitchen-table politics before November.
