Fiscal conservatives are concerned that altering the budget rules could undermine fiscal discipline and worsen the already large deficit.
WASHINGTON—The pressure is mounting for Republicans in Congress. They face a critical, high-stakes few weeks ahead as they work to resolve key challenges in advancing President Donald Trump’s legislative agenda. At the top of their list is making permanent the tax cuts enacted during the president’s first term.
This promise was a cornerstone of Trump’s 2024 campaign, but bringing it to life comes with hurdles. The price tag is hefty, and Republicans in both the House of Representatives and the Senate remain divided on how to fund it, all while striving to keep the budget balanced.
“We need Congress to pass the largest tax cuts in American history,” Trump said during remarks at a White House event on March 26.
“We want one big, beautiful bill. Just put it all in that bill, and we’ll figure out a way to have it passed.”
To pass new tax cuts and advance Trump’s other agenda items, Republicans plan to use the budget reconciliation process, which will allow them to bypass the Senate 60-vote filibuster threshold and approve legislation with a simple majority vote.
In February, the Senate and House passed separate budget resolutions for fiscal year 2025 to pave the way for reconciliation legislation. A budget resolution establishes overall levels of spending, revenue, the deficit or surplus, and public debt. Now, the two chambers must agree on a concurrent budget resolution to formally kick off the reconciliation process.
However, one of the main hurdles they must address is whether Republicans can use the “current policy baseline” method to score the bill and make tax cuts permanent without adding to the deficit.
‘Budget Gimmick’
The 2017 tax cuts are set to expire at the end of 2025. The budget resolution passed by Republicans in the House on Feb. 25 authorized $4.5 trillion in tax cuts over the next decade, setting a cap on the amount that the federal government can lose in revenue. The House plan also includes $2 trillion in spending cuts to partially offset the loss.
By Emel Akan
