The House Freedom Caucus is set to draw battle lines on reconciliation after presenting a plan to Trump.

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First on Fox: The conservative House Freedom Caucus is preparing to release a conservative policy reform proposal from Republicans that would raise the debt limit by two years or $4 trillion, Fox News Digital has learned.

Congressional Republicans are gearing up for major conservative policy reforms in the budget reconciliation process. By lowering the threshold for passage in the Senate from 60 votes to 51, the reconciliation would allow the party that controls Congress and the White House to pass a wide range of policy changes — as long as they don’t touch on the budget and other fiscal issues.

However, there have been some disagreements about whether to pass all of their goals — border security, defense, spending cuts, tax cuts and energy — in a single bill, or to split the priorities into two. Identify legal components to ensure early victory on at least some measures.

House Freedom Caucus Republicans

Rep. Chip Roy, R-Texas, speaks at a House Freedom Caucus news conference against the debt ceiling deal outside the U.S. Capitol on May 30, 2023. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

President-elect Donald Trump has said he favors a one-bill approach, but would be open to two. They also tasked Republicans with raising or suspending the debt limit, and the U.S. Treasury is expected to run out of money to pay off the debt by mid-June.

Members of the Freedom Caucus are among the Republicans calling for two separate bills. The plan unveiled Thursday calls for border security, defense and major spending cuts to be included in the first bill.

Those cuts would be used to offset the tax breaks that would be extended in the second bill, Fox News Digital was told.

Conservative lawmakers presented the plan to Trump last Friday at Mar-a-Lago, but it’s unclear what his response was.

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Trump Mar-a-Lago

Conservative lawmakers have pitched the plan to President-elect Donald Trump. (AP Photo/Evan Vucci)

Senate Majority Leader John Tune, RS.D. He has previously supported a two-bill approach in public comments.

Opponents of that plan, which includes Republicans on the House Ways & Means Committee, have warned that Trump’s second tax cut bill would guarantee that provisions passed by his previous administration would expire at the end of the year and raise taxes. For millions of Americans.

Committee Chairman Jason Smith, R-Mo., previously told FOX Business host Maria Batiromo that two reconciliation bills have not been passed at the same time since 1990.

However, GOP negotiators have not decided to include action on the debt limit in their reconciliation bill, as both measures are known to require difficult political maneuvering.

The Freedom Caucus’ expected plan is a way for fiscal hawks who scornfully oppose action on the debt limit to agree.

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House Ways and Means Chairman Jason Smith, R-Mo., supports a bill approach.

House Ways and Means Chairman Jason Smith, R-Mo., supports a bill approach. (Tom Williams)

That group also worries that putting all of the agenda into one bill won’t produce enough cuts to offset the extra spending.

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On January 20, two House Republicans left for the Trump administration, Speaker Mike Johnson, R-La. , will have to navigate a slim-to-thin vote until special elections are expected in April.

Until then, just one Republican “no” vote would be enough to derail any piece of legislation that doesn’t have Democratic support.

Fox News Digital reached out to Trump’s transition team and the House Freedom Caucus for comment.