The resolution will next be considered by the full House.
The House Budget Committee last night approved (by a vote of 21-16 along party lines) the 2025 budget resolution released earlier this week. The resolution includes instructions allowing the House Ways and Means Committee to increase the deficit by up to $4.5 trillion over fiscal years 2025-2034 in a possible future reconciliation bill. Read TaxNewsFlash
Next steps
The adoption of a joint House-Senate budget resolution is the first step in the budget reconciliation process. Conforming budget legislation is privileged in the Senate, and is therefore not subject to filibuster and the need for 60 votes for cloture. The resolution will next be considered by the full House.
The Senate Budget Committee approved a different budget resolution. The Senate resolution contemplates more limited reconciliation legislation, addressing border security, defense, and energy issues, but not tax. Instead, it would leave tax legislation to a second reconciliation bill. The Senate could vote on its resolution as soon as next week.
House and Senate must, of course, reach agreement on a budget resolution and approach. They remain divided on deficit effects, length of “Tax Cuts and Jobs Act” (TCJA) extensions, and spending reductions to offset the revenue cost. President Trump has stated his preference for a single bill, but he has largely left Congress to decide on the approach.