House Budget Committee Proposes Budget Resolution

Yesterday, the House Budget Committee released a budget resolution, which is the first step in the reconciliation process. The resolution gives the House Ways and Means Committee instructions to spend $4.5 trillion on tax cuts, which could include Opportunity Zone Program reform and other IPA tax priorities. The resolution also calls for $1.4 trillion in spending cuts over 10 years and House Committees must report by March 27 with proposals to achieve cuts within their respective jurisdictions. The Budget Committee will vote on the resolution this morning, and IPA will continue to advocate for the preservation of 1031 and other beneficial tax programs. 

The House is proceeding, at least right now, with one reconciliation bill. The Senate, however, is proceeding with two reconciliation bills — the first “skinny” reconciliation measure will cover energy, defense and immigration, while the second will cover tax policy later in 2025. The first reconciliation bill, which the Senate Budget Committee approved yesterday, would boost defense and border security funding by more than $300 billion over four years. The entire Senate could vote on this bill in the next couple of weeks.