Scoop: Key conservative caucus draws red line on House budget plan

The House's Republican Study Committee is drawing a red line in the GOP's budget reconciliation talks.

The Republican Study Committee, led by Rep. August Pfluger, is taking an official policy stance on reconciliation talks

They have been negotiating for weeks on how to use their razor-thin majorities in the House and Senate to pass massive conservative policy changes through the budget reconciliation process.

By reducing the threshold for Senate passage from 60 votes to a 51-seat simple majority, reconciliation allows a party in control of both congressional chambers to enact sweeping changes, provided they are relevant to budgetary and fiscal policy.

At 178 members, RSC is House Republicans' largest inter-conference group. It often acts as the House GOP's de facto "think tank" on policy matters.

The group is being led this year by Rep. August Pfluger, R-Texas. Its previous chairman is Rep. Kevin Hern, R-Okla., who was recently elected House Republican Policy Committee chair – an example of RSC's close ties to GOP leadership.

Republican lawmakers have their work cut out for them this year as they work to unify for congressional leaders' preferred timeline for the reconciliation process.

\Speaker of the House Mike Johnson has said he is aiming for a reconciliation bill that will be deficit-neutral (AP Photo/J. Scott Applewhite, File)

"Anything we do, is going to be deficit-neutral at least, and hopefully deficit-reducing, because we think we've got to change that trajectory," he said on Wednesday. "So that is part of the healthy discussion we've been having. And everyone has lots of opinions about that, of course. And, the opinions are welcomed."

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The U.S. is running a cumulative deficit of $710 billion in fiscal year 2025 so far, according to the Bipartisan Policy Center. It's $200 billion more than the same period in FY 2024.

Meanwhile federal revenues were $1.1 trillion through December, a decrease of 2% from the same period prior, the group said.

Elizabeth Elkind is a politics reporter for Fox News Digital leading coverage of the House of Representatives. Previous digital bylines seen at Daily Mail and CBS News.

Follow on Twitter at @liz_elkind and send tips to elizabeth.elkind@fox.com

https://www.foxnews.com/politics/key-conservative-caucus-draws-red-line-house-budget-plan