GOP wary of new immigration battle

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Senate GOP leadership is staying away from a proposal to ensure illegal immigrants don’t get tax break payouts from the government, with the party still smarting from a battle over Department of Homeland Security funding.

Senior Republicans generally say they support the goals of the bill from Senate Judiciary Committee Chairman Chuck GrassleyCharles (Chuck) Ernest GrassleySenate approves border bill that prevents shutdown Grassley raises voice after McConnell interrupts Senate speech Senate confirms Trump pick William Barr as new attorney general MORE (R-Iowa) that seeks to keep immigrants protected from deportation by President Obama’s executive actions from claiming several years’ worth of earned income tax credits. 

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But with the most recent immigration fight having just finished, Senate Finance Committee Chairman Orrin HatchOrrin Grant HatchOrrin Hatch Foundation seeking million in taxpayer money to fund new center in his honor Mitch McConnell has shown the nation his version of power grab Overnight Health Care — Presented by PCMA — Utah Senate votes to scale back Medicaid expansion | Virginia abortion bill reignites debate | Grassley invites drug execs to testify | Conservative groups push back on e-cig crackdown MORE (R-Utah) has said he’s still examining the legislation, and even GOP leaders who openly back the measure say now is not the right time to push hard for the measure.

“It’s more of a longer-term project,” said Senate Majority Whip John CornynJohn CornynPoll shows competitive matchup if O’Rourke ran for Senate again On The Money: Trump declares emergency at border | Braces for legal fight | Move divides GOP | Trump signs border deal to avoid shutdown | Winners, losers from spending fight | US, China trade talks to resume next week How the border deal came together MORE (Texas), one of the 10 GOP co-sponsors of the bill.

Conservative lawmakers and outside groups are still angry that the GOP didn’t continue the fight to withhold Department of Homeland Security funding, which they viewed as the best avenue to combat Obama’s decision to shield millions of immigrants in the U.S. illegally from deportation.

“I’m clearly one of those who thinks that we need to continue to push very aggressively and that we should have pushed harder earlier,” said Sen. Mike CrapoMichael (Mike) Dean CrapoOn The Money: Lawmakers race to pass border deal | Trump rips 'stingy' Democrats, but says shutdown would be 'terrible' | Battle over contractor back pay | Banking panel kicks off data security talks Hillicon Valley: Lawmakers press officials on 2020 election security | T-Mobile, Sprint execs defend merger before Congress | Officials charge alleged Iranian spy | Senate panel kicks off talks on data security bill Senate Banking panel kicks off talks on data security bill MORE (R-Idaho), another co-sponsor on the tax credit bill. 

But with a federal court having blocked Obama’s executive actions, Senate Republicans have increased their focus on other issues, including an anti-human-trafficking bill and nuclear negotiations with Iran. 

Top Senate Republicans say lawmakers will have to deal with immigration again but now are less sure about when the matter will return as a central focus on Capitol Hill. The Senate is scheduled to deal with its budget at the end of March, and leadership aides have simply said Grassley’s measure is in the Finance Committee’s hands now.

“It’s an issue that’s always going to be with us,” Sen. John ThuneJohn Randolph ThunePolls: Hiking estate tax less popular than taxing mega wealth, income Will Trump sign the border deal? Here's what we know Key GOP senator pitches Trump: Funding deal a 'down payment' on wall MORE (S.D.), the third-ranking Republican in the Senate, said about immigration.

Grassley’s bill would bar unauthorized immigrants shielded by Obama from claiming the earned income tax credit, a refundable tax break aimed at working families, for the years they worked in the U.S. illegally. 

Immigrants protected by Obama’s executive actions late last year could potentially receive work permits and a Social Security card, which also allows them to claim the tax credit. And the IRS has made it clear that those workers would be able to seek payments of the credit for up to three previous years, which Grassley calls a loophole that should be closed.

Grassley said Wednesday that he had yet to press his case with leadership about his bill and that his first priority would be talking up the measure with Hatch. But the Iowa Republican also said that any reluctance GOP leaders might have about his bill might fade, when they’re trying to cobble together packages for Medicare’s “doc fix” and the Highway Trust Fund, both of which face deadlines in the coming months.

“I don’t know very many people in the Republican Party that want to fritter away $1.7 billion,” Grassley said, pointing to how much congressional scorekeepers say his measure will raise over a decade.

The proposal also underscores the challenges Republicans face heading into the 2016 election season, after support for the GOP among Hispanics continued to plummet in the last presidential election.

Republican strategists and some lawmakers have said the party has to repair its relationship with Hispanic voters ahead of 2016, and some of the leading contenders for the GOP nomination, including former Gov. Jeb Bush (Fla.), have more centrist records on the issue. 

But the GOP’s base is also full of hard-liners on immigration who oppose congressional efforts to broadly revamp immigration laws. And potential presidential hopefuls like Sen. Ted CruzRafael (Ted) Edward CruzPoll shows competitive matchup if O’Rourke ran for Senate again Democrats veer left as Trump cements hold on Republicans O’Rourke heading to Wisconsin amid 2020 speculation MORE (Texas) were among those pressing the hardest for Republicans to keep up the fight on Homeland Security funding.

Hatch, who supported the Senate’s 2013 immigration bill, said this week that he’d “certainly take an interest in” the measure introduced by Grassley, a former Finance panel chairman, and six other members of the tax-writing committee. 

The Utah Republican has pressed the Obama administration on a related issue, seeking more information from the Social Security Administration about how many new numbers they plan to assign because of Obama’s immigration actions. 

But Hatch also acknowledged that he wanted to take a deeper look at Grassley’s bill and that finding common ground on immigration remained a challenge for Republicans.

“I don’t know that I’d call it a divide,” Hatch said. “But there are different attitudes and different feelings and different bills even.”

Thune said Grassley’s bill could get “a good amount of support” if it hit the Senate floor, given Republicans’ past concern about the amount of fraud connected to the earned income credit and other refundable tax credits.

But other Republicans also wondered about pushing a measure that would almost certainly run into a wall of Democratic opposition.

“I think they could get behind it,” Sen. Richard BurrRichard Mauze BurrThe Hill's 12:30 Report — Presented by Kidney Care Partners — Lawmakers scramble as shutdown deadline nears Drama hits Senate Intel panel’s Russia inquiry Cohen to testify before three congressional panels before going to prison MORE (N.C.) said of his fellow Republicans. “The question is, can you get it through the Senate?”