State of the Union: Trump to announce plans for new tax cuts through budget reconciliation

Advancing any legislation through this process is now significantly more challenging given House Speaker Mike Johnson's shrinking margin in the lower chamber.

President Donald Trump is set to call for a new tax cut proposal during his State of the Union speech on Tuesday night, he said during a pre-address meeting with news anchors at the White House.

CNBC's Joe Kernen attended the gathering and reported on CNBC's "Power Lunch" that the president laid out his plans to advocate for new personal and corporate tax cuts, which will Trump wants to be advanced using a second party-line budget reconciliation effort in Congress.

Reconciliation is a parliamentary process that allows a party in control of the House, Senate and White House to skirt the Senate filibuster's 60-vote threshold and advance certain legislation along party lines. Congressional Republicans passed tax cuts and a swath of other domestic policies through reconciliation last year in a package known as the one big beautiful bill. The process also requires the Senate parliamentarian to rule that the legislation pertains to the budget.