Congress Sets Up Fast-Track for Tax Bill, Spending Cuts

Congress has passed a budget resolution that sets up accelerated consideration of a tax bill, which will also be paired with significant federal spending cuts. 

Absent action by Congress, the nation faces a $4 trillion tax increase starting next year as most provisions of the 2017 Tax Cuts and Jobs Act (TCJA) expire. President Trump has made extending TCJA his top legislative priority.

Alongside extending the TCJA tax cuts, Congress is also seeking $1.5 trillion in cuts to federal spending. Congress will also include an increase to the federal debt ceiling. 

By agreeing to this budget resolution, Congress is relying on a procedural process known as reconciliation, which will allow Republicans to pass this tax and spending bill on a party-line basis.

The House is expected to move quickly, with committees moving out legislation in early May. The House hopes to pass a final bill by Memorial Day. 

This process will take longer in the Senate and likely spill into late summer.

Although Congress has agreed on a framework for this process, with the narrow Republican majority in the House, passage will be challenging and the timeline remains uncertain. 

NAHB remains fully engaged with lawmakers as the legislative process moves forward.