Budget Resolution

Late Tuesday evening the House passed its version of the FY 25 budget resolution by a vote of 217-215. This budget resolution sets the stage for budget reconciliation, but it will require coordination with the Senate. As a reminder, last Friday the Senate, by a vote of 52-48, adopted its version of the FY’25 budget resolution (S Con Res 7).  There are no immediate impacts on appropriations through these budget resolutions.

This is seen as a major victory for the Speaker and the President, though things will get even more difficult with the House and Senate having to resolve a wide gap in their approaches to budget reconciliation. The House plan calls for tax cuts, steep reductions in spending, a two-year debt hike, new money for border security and energy production, spending cuts and a two-year debt hike, as well as new money for border security and energy production. The Senate’s plan, however, contains only national security and energy money, while punting on tax cuts and other controversial issues for their second bill.

FY2025 Appropriations: Senate Appropriations Chair Susan Collins (R-ME) stated that she has been instructed by the Trump administration and GOP leadership to start prepping a continuation resolution (CR) to fund the government through the end of the fiscal year.  As a reminder, the current CR runs through March 14.

Democrats want assurances that the administration will respect Congress’ power of the purse and are still demanding that Republicans agree to put guardrails on the Administration’s actions to freeze and claw back funding Congress has already approved in any government funding package — and Republicans say they will not agree to those conditions. Votes from Democrats will be needed to get past the 60-vote hurdle in the Senate, so there are still things to be negotiated.