Budget Reconciliation Process Underway
The budget reconciliation process is currently underway in Congress (read more about the reconciliation process here). In a narrow 217-215 vote, the U.S. House of Representatives passed a budget resolution which authorizes $4.5 trillion in tax cuts through 2034 (with all but one Republican voting in favor and all Democrats voting against). To offset the cost of these tax cuts, House committees are tasked with identifying $2 trillion in government spending reductions. In order to move the budget resolution forward, the Senate and House must adopt the same version of the bill.
From the outset, the House and Senate have been at odds over their approach: the House setting out to pass “one big, beautiful bill” and the Senate hoping to pass two separate budget bills. The Senate is still uncertain about how to proceed and has expressed various disagreements with the House's proposal. However, House Republicans are forging ahead with their version of the bill, irrespective of the Senate’s concerns or potential changes. Another strategic divergence is the timing of the bill; House Republicans have set a goal of getting the bill to the President’s desk by Memorial Day, while Senate leaders are targeting an August timeline. While most Senate Republicans agree on extending the 2017 Trump Tax Cuts, some are more hesitant on the extent of further funding cuts. The House’s version of the bill, however, would make it impossible to meet the targets without slashing Medicaid, a provision that has raised concerns among Senate Republicans and is, in part, to blame for the delay on the Senate side.
It still remains unclear whether commuter tax benefits will be among the cuts selected by Republicans. They are currently holding meetings to decide which items from a 50-page list of potential cuts will be chosen to fund the proposed tax reductions. Now is the time to take action! ACT has provided a variety of resources to help you contact your member of Congress. Whether speaking on behalf of your organization or as an individual, ACT encourages members to advocate for the protection of commuter tax benefits.