Before leaving Washington D.C. for Memorial Day recess, the U.S. House of Representatives passed a budget reconciliation package by a vote of 215-214. The bill now heads to the Senate, where it will face additional scrutiny when Congress returns next week. Specifically, several Republican Senators have voiced concerns about proposed cuts to Medicaid contained in the bill. Questions also linger over making certain business tax provisions permanent, which are currently temporary and set to expire under current law; Senate Finance Chairman Mike Crapo (R-ID) has named this as a top priority. Other changes anticipated in the Senate include increasing the child tax credit, and closing the carried interest tax loophole.
Another key hurdle in the Senate is the Byrd Rule, which prevents lawmakers from including non-budgetary provisions into reconciliation. Senate Democrats plan to use the Byrd Rule to challenge provisions they believe fail to satisfy the Byrd standard.
Of particular interest, the House bill includes reauthorization of the Secure Rural Schools (SRS), and RCRC will continue working diligently to ensure that SRS remains in the measure passed by the Senate.
While there is talk amongst Republicans of aiming to get a final bill to the President’s desk by July 4th, Treasury Secretary Scott Bessent has suggested that the Senate needs to advance the bill by late July at the latest, and Senate Finance Chairman Crapo has declined to give a timeline. Any changes made in the Senate will need to be reconciled with the House before it reaches the Oval Office for Presidential action.
For additional information, contact RCRC Senior Vice President of Government Affairs, Mary-Ann Warmerdam.