The House is back in session this week with all eyes on its efforts to advance a budget resolution after the Senate approved a counterproposal that may serve as an accelerant or an alternative to the House's one-bill approach.

Last week, the president threw his support behind House Republican leaders working to line up support for a budget resolution that would authorize a single reconciliation bill that addresses border security, defense, energy production, and tax policy, to the tune of a proposed $4.5 trillion tax package. "We need both Chambers to pass the House Budget to 'kickstart' the Reconciliation process and move all of our priorities to the concept of, "ONE BIG BEAUTIFUL BILL," he posted on social media.

Senate Republicans are pursuing a different strategy, passing a budget plan last week after a marathon vote-a-rama that would set up a first reconciliation bill that focuses exclusively on border security, defense, and energy production, envisioning a second budget resolution and reconciliation bill on tax policy that would come later in the year. As noted above, the House plan is to do it all — border security, defense, energy production, and taxes — in one bill. So far, House Republicans have been struggling to line up enough support to pass a budget plan. With a 218-215 majority and competing internal interests on the state and local tax (SALT) deduction cap and deficit spending complicating the picture, House Speaker Mike Johnson (R-LA) has his hands full finding a path for passage. Nonetheless, a House vote is possible this week.

If House Republicans are able to muster a majority for their budget plan, Senate Republicans appear likely to embrace that approach. "If the House can produce one big beautiful bill, we're prepared to work with them to get that across the finish line," Senate Majority Leader John Thune (R-SD) said, "but we believe the president also likes optionality." In other words, if the Senate's success last week in passing a budget plan doesn't prod the House to take action in the next couple weeks, the Senate's Plan B could become Plan A in the drive to enact the president's legislative agenda. #TaxTake

Upcoming Speaking Engagements and Events

Jorge and Marc will speak at the 49th Annual Federal Bar Association Tax Conference on March 3.

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