Budget reconciliation process in U.S. Congress

Budget reconciliation in U.S. Congress

A comprehensive resource on the process and use of budget reconciliation with details on the laws and rules governing the process, summaries and analysis of historical use, and coverage of reconciliation bills during the second Trump administration

Most recent budget reconciliation bill: The One Big Beautiful Bill Act is a major legislative package that was passed through budget reconciliation by Republicans during the first year of President Donald Trump's (R) second term. It was signed into law on July 4, 2025.

What is budget reconciliation?
Budget reconciliation is a legislative process that can be used to override the filibuster and expedite the approval of a package of legislation in Congress that changes spending, revenues, or the debt limit. Usually, a three-fifths majority (60 votes) is needed in the Senate to bring bills to a vote. Budget reconciliation bills require a simple majority (51 votes) instead of the three-fifths majority in the Senate because of the time limit on debate.

The reconciliation process occurs if Congress passes a budget resolution for the fiscal year that gives reconciliation instructions. The provisions of reconciliation bills are crafted by committees or added through amendments. The Congressional Budget Act of 1974 and the budget resolution limit the content of the reconciliation bill. Those limitations are enforced through the Byrd Rule.

Why does it matter?
Since budget resolutions and budget reconciliation bills have limits on debate, they cannot be filibustered in the Senate; the package of bills passed through reconciliation requires support from 51 senators instead of 60.

Between 2010 and 2025, Democratic trifectas passed three budget reconciliation bills, Republican trifectas passed two, and one was passed by a Republican-controlled Congress and vetoed by a Democratic president in a divided government. Reconciliation is most frequently used when one party has trifecta control of the House, the Senate, and the Presidency, but does not have a 60% majority in the Senate.

What is the background?
The budget reconciliation process was created by Title III of the Congressional Budget and Impoundment Control Act of 1974. The law, in addition to the budget reconciliation process, created congressional budget committees and the Congressional Budget Office. President Richard Nixon (R) signed the law into effect on July 12, 1974. The Byrd Rule, which provides senators with a mechanism to attempt to remove or block provisions from a reconciliation bill by raising points of order against them, was adopted in the 1980s and formally included in the Congressional Budget Act in 1990. The Byrd Rule, added in the 1980s, restricts what can be included in reconciliation bills and empowers the Senate Parliamentarian to advise on its enforcement.

Explore the topics below for detailed information:

• How does reconciliation work and why are 51 Senate votes needed instead of 60?
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• What limitations do reconciliation bills have and what is the Byrd Rule?
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• How often can the reconciliation process be used?
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• What are the roles of the Vice President and the Parliamentarian in the Byrd Rule?
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• What can and cannot be included in budget reconciliation bills?
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• How was the 2025 budget reconciliation bill passed, and what is in it?
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• What have Democrats and Republicans done through reconciliation?
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• How and when was the budget reconciliation process created and how has it changed?
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• What significant laws have been passed through budget reconciliation in the past?
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Budget reconciliation process

Budget reconciliation is a legislative process that can be used to expedite the passage of a package of legislation related to spending, taxes, and the debt limit. It requires a simple majority (51 votes) instead of the 60 votes usually needed in the Senate to bring a bill to a vote and pass it.

How does the reconciliation process begin and what are reconciliation instructions?

This process is only conducted if it is called for in a budget resolution passed by the House and the Senate. A budget resolution can give reconciliation directives to specific committees. These instructions initiate the reconciliation process and set limitations on the content of the reconciliation bill.

The process for budget resolutions limits debate time to 50 hours, preventing filibuster, and can be brought to a vote and approved by a simple majority in both the House and the Senate, similar to reconciliation bills.

What are the limitations on reconciliation bills?

The budget resolution that provides reconciliation instructions limits the content of a reconciliation bill. Budget resolutions can provide reconciliation instructions for legislation that changes federal spending, changes federal revenue, changes the federal debt limit, or some combination of the three. Provisions addressing spending, revenue, or the debt limit can be combined into one bill, but multiple separate bills cannot be used to satisfy the same budget resolution instructions. It also prohibits changes to social security through the reconciliation process.

The restrictions on reconciliation are enforced through the Byrd Rule, through which senators claim provisions are extraneous and should be removed or excluded from the omnibus reconciliation bill, and the Vice President as presiding officer of the Senate makes a determination. The Vice President can be overruled by a 60% Senate vote.

The Senate Parliamentarian advises the Vice President on Byrd Rule points of order. Through what is referred to as the Byrd Bath, the Senate Parliamentarian can also preemptively advise committees and legislators on the content of reconciliation bills and whether they are likely to meet the requirements of the Byrd Rule before the legislation comes to the floor.

Chronological process for

Budget Reconciliation

The House and Senate pass the same budget resolution

Reconciliation instructions (directives) in the budget resolution start the process.
• Reconciliation directives. • 2025 resolution

Committees draft legislation based on reconciliation directives in the resolution

Senate and House budget committees compile proposals from the other committees into budget reconciliation bill packages (one in each chamber). Occasionally, the Senate has skipped the committee process, moving the House bill straight to the floor (e.g., 2021 and 2017).
• Role of Committees • Byrd Baths • 2025 reconciliation

Reconciliation bills are debated on the floor of both chambers

After and during debate, amendments can be proposed and points of order seeking removal of provisions can be raised under the The Byrd Rule.
Reconciliation bills in the Senate • Reconciliation bills in the House • Amendments and vote-a-ramas

The House and Senate pass the same reconciliation bill

To complete the reconciliation process, both chambers need to pass identical reconciliation packages by a simple majority. Debate is limited in the Senate, preventing filibusters.
• Examples from history

The president signs or vetoes the reconciliation bill

After the budget reconciliation bill passes both chambers, it is sent to the president to be signed or vetoed.
• Historical usage • Analysis of past bills

• Click here for a detailed explanation of the Byrd Rule.
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• Click here for examples of the Byrd Rule in practice.
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• Click here for a detailed explanation of the Byrd Bath.
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How often can reconciliation be used?

The budget reconciliation process and resulting legislation packages originate with budget resolutions. Since there is generally only one budget resolution per fiscal year, this means that in most cases, there can only be one reconciliation process per fiscal year. The Senate Parliamentarian has advised, however, that reconciliation could be conducted more than once for the same fiscal year if Congress passed a revised budget resolution due to changed economic conditions or an emergency and the revised budget resolution also called for reconciliation.

Each reconciliation process can result in up to three separate bills: a maximum of one each for budget resolution instructions on (1) spending, (2) taxes and revenues, and (3) the debt limit. More frequently, provisions are combined into a single bill addressing all three topics of the resolution instructions. Multiple reconciliation bills cannot be used to satisfy the same instruction.

How are reconciliation bills drafted and how are committees involved?

Budget resolutions call for reconciliation using clauses called reconciliation directives. If these directives are included in the budget resolution, the House and Senate committees that receive them draft bills to change laws within their jurisdiction that affect spending, tax, and debt limits so that the proposed budgetary goals can be accomplished. Reconciliation directives are not specific as to what types of legislation the committees are supposed to draft; rather, they provide guidelines for what sort of monetary effect the legislation should have. Reconciliation instructions can be specific or general. Instructions on revenue and spending have been combined to provide instructions to decrease or increase the deficit. The reconciliation bill must follow the instructions of the reconciliation directive.

Budget resolutions can be drafted specifically to allow intended reconciliation legislation by anticipating spending and revenue levels or by authorizing the levels in the resolution to be adjusted to fit a reconciliation bill that meets other requirements.

After the committees draft their legislative recommendations, all of the committees' reconciliation bills are then sent to the House and Senate Budget Committees, who compile them into an omnibus budget reconciliation bill. This is only necessary if multiple committees have received reconciliation directives. If reconciliation instructions were given to one committee, the Budget Committee has no need to compile any legislation and the lone reconciliation bill goes directly from its committee to the floor.

Occasionally, the Senate has skipped the committee process and has taken the House reconciliation bill straight to the floor. This occurred in 2021 and 2017, for example.

Through what is called a Byrd Bath, the Senate Parliamentarian can also preemptively advise committees and legislators on the content of reconciliation bills and whether they are likely to meet the requirements of the Byrd Rule before the legislation comes to the floor.

What are reconciliation rules in the House?

The reconciliation process does not affect procedures in the House as much as in the Senate because the House does not have the 60% vote requirement for ending debate and bringing a bill to a vote as the Senate does. During the consideration of reconciliation bills as with other significant legislation, the House Rules Committee usually sets limitations for debate and amendments.

What are reconciliation rules in the Senate and why are only 51 votes needed?

Reconciliation bills are unique in the Senate because they can be moved to a floor vote and passed by a simple majority, bypassing the 60% cloture requirement. This is because they are not subject to the filibuster due to the 20-hour time limit on floor debate and the requirement that any proposed amendments be relevant. The filibuster is a strategy of preventing or delaying action on a bill in the Senate by speaking at length on a proposal, introducing multiple procedural motions, or engaging in other obstructive actions. 60% of the Senate has to vote in favor to end debate on a non-reconciliation bill or to end a filibuster, which can be continued indefinitely.

In the Senate, provisions can be struck from reconciliation bills and proposed amendments according to the Byrd Rule.

• Click here for a detailed explanation of the Byrd Rule.
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• Click here for examples of the Byrd Rule in practice.
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How do amendments work for reconciliation bills and what are vote-a-ramas?

See also: Vote-a-ramas in the U.S. Senate

After debate is over in the Senate, amendments to a reconciliation bill can still be proposed and voted on. Senators briefly explain the amendment before the Senate proceeds to a 10-minute roll call. This process, sometimes called the vote-a-rama, has no limit on the number of amendments that can be proposed. Amendments are supposed to be germane (relevant to the contents of the bill). Points of order under the Byrd Rule can still be made during this time. As of July 2025, there had been 46 vote-a-ramas, defined as instances of budget reconciliation bills or budget resolutions receiving 15 or more votes in one day, in the Senate from 1977 to 2025.

How are reconciliation bills enacted after amendments are finalized?

After all amendments have been proposed and voted on, the House and Senate have to adopt the same version of the reconciliation bill. If different versions of the bill have been adopted by the House and Senate, then a either House-Senate conference committee is required or the two chambers could exchange amendments until they are in agreement.

Budget reconciliation bills, unlike the budget resolutions that precede them, are sent to the president to be either signed or vetoed. If a budget reconciliation bill is vetoed, then the process is over. A new budget resolution would have to be drafted in order to trigger the budget reconciliation process again.

The Byrd Rule

What is the Byrd Rule?

The Byrd Rule is found in 2 U.S. Code § 644 and provides senators with a mechanism to attempt to remove or block provisions from a reconciliation bill. If any senators believe provisions in the reconciliation omnibus bill or in proposed amendments to the bill are irrelevant to the reconciliation directives, they can raise a point of order under the Byrd Rule. A point of order under the Byrd Rule is a motion to delete the specified provision before consideration is resumed. The vice president as the presiding officer of the Senate rules on Byrd Rule points of order. The Senate Parliamentarian advises the vice president on Byrd Rule points of order.

What provisions can be removed under the Byrd Rule?

The Byrd Rule states that any provision that meets one of the following criteria can be excluded from a reconciliation bill:

• it does not make any changes to spending or revenue or to the terms and conditions under which spending or revenues are accomplished;
• it makes changes to spending or revenue, but the changes are not in compliance with the reconciliation instructions in the budget resolution;
• the provision is not within the jurisdiction of the committee that submitted it;
• the changes in spending or revenue are merely incidental to the nonbudgetary policy changes of the provision;
• it increases the deficit for a fiscal year after the 10 fiscal years covered by the specific budget resolution; or
• it makes changes to Social Security.

The three most common reasons that provisions have been removed according to the Byrd Rule are:

• no change in outlays or revenues,
• budgetary changes merely incidental to non-budgetary components, and
• outside committee’s jurisdiction.

How are provisions removed by Byrd Rule points of order?

A point of order is a motion to delete an extraneous provision before consideration of the bill is resumed. Any senator can raise a point of order under the Byrd Rule. The vice president determines whether to sustain the point of order as the presiding officer of the Senate. When the vice president sustains the point of order, the specified material is excluded from the reconciliation bill and consideration of the legislation resumes.

Points of order can be made concerning any number of provisions; there is no limit to a single point of order. The presiding officer can sustain a point of order under the Byrd Rule for all or some of the provisions challenged through a point of order.

Points of order are the only enforcement method for the Byrd Rule and the removal of extraneous provisions. For example, Congress has passed changes to the budget process itself through a reconciliation bill even though the changes were not designed to change revenue or outlays directly. Since no point of order was made against the provisions, no determination regarding whether they should be removed was made.

What is the role of the Senate Parliamentarian?

See also: Senate Parliamentarian

The Senate Parliamentarian is a nonpartisan advisor to the chamber on procedural issues, interpretation of Senate rules, and legislative activity. For budget reconciliation and the Byrd Rule specifically, the Senate Parliamentarian advises the Vice President about whether a provision challenged through a point of order is extraneous under the Byrd Rule.

When has the Vice President ruled contrary to the Parliamentarian's advice?

Vice President Nelson Rockefeller overruled the Parliamentarian in 1975 regarding procedures for voting to change the Senate's filibuster rules. Vice President Hubert H. Humphrey ruled contrary to the Parliamentarian's determination regarding the filibuster threshold in 1967 and 1969.

In March 2021, 24 Democratic members of Congress wrote a letter to President Joe Biden (D) and Vice President Kamala Harris (D) requesting that Harris overrule the Senate Parliamentarian's determination that a provision raising the national minimum wage to $15 per hour proposed for the 2021 reconciliation bill was extraneous and had to be removed according to the Byrd Rule. Ultimately, Harris ruled in accordance with the Parliamentarian and removed the provision.

The Senate majority leader has twice dismissed the Senate Parliamentarian. Sen. Robert Byrd (D) dismissed Parliamentarian Robert B. Dove in 1987. Dove was reinstated in 1995. Sen. Trent Lott (R) again dismissed Dove in 2001. Click here to read more details.

How do motions to waive the Byrd Rule work?

Senators can move to waive the Byrd Rule for a provision, allowing inclusion in the reconciliation bill whether or not it is extraneous. Senators can also move to overrule the Vice President's determination on a Byrd Rule point of order. Motions to waive the Byrd Rule or overrule the Vice President require a 60% vote in the Senate, which means they need the same number of votes as would be required to end a filibuster and bring a bill to the Senate floor normally.

From 1985 to 2022, 69 motions to waive were made during the 27 reconciliation processes that made it through both the House and the Senate, and nine of them (13%) were approved with the required 60%, while 60 (87%) were rejected.

What does Byrd Bath refer to?

The Senate Parliamentarian can also preemptively advise committees and legislators on the content of reconciliation bills and whether they are likely to meet the requirements of the Byrd Rule before the legislation comes to the floor. This is referred to as a Byrd Bath. During a Byrd Bath, decisions regarding what to include or not include in a reconciliation bill are made by a small number of senators and Senate staff with determinations about whether or not a provision will likely be deemed in compliance with the Byrd Rule made by the Parliamentarian. This means provisions are not put before the Vice President for an official determination through points of order and that proposed provisions and decisions regarding noncompliance made during a Byrd Bath are not published in records or available to the public.

What are examples of provisions removed or kept based on Byrd Rule determinations?

Point of order rejected: provisions kept

• In 1993, a provision of the Omnibus Budget Reconciliation Act of 1993 was challenged on the basis that it caused no changes in budgetary outlays or revenues to its nonbudgetary components. The provision was designed to require each state to establish a program to distribute pediatric vaccines and to require the Secretary of State to negotiate contracts with companies to provide vaccines to the state programs. The budgetary component was that the Secretary could not accept contracts on behalf of the states if the CDC had a contract for the same vaccine from the same company at a lower price.

The point of order was initially sustained, and the provision was rejected. Similar provisions accompanied by a Congressional Budget Office estimate that they would have some unquantified effect on prices for the federal government were again considered and again challenged by a Byrd Rule point of order on the basis that it caused no changes in budgetary outlays or revenues and that its budgetary changes were merely incidental. The point of order was rejected and the motion to appeal the ruling was rejected with 43 votes in favor and 57 against. The provision remained in the bill. This could have an effect on the price the CDC pays for vaccines and therefore makes a budgetary change even though the extent of that change couldn't have been known at the time the legislation was enacted.

• Another point of order was raised against a section of the Omnibus Budget Reconciliation Act of 1993 designed to create a tobacco tax assessment. Section 1106(a) created an assessment for cigarette manufacturers that imported more than 25% of the tobacco they used. Money was collected from these companies under the assessment at a rate that made triggering the assessment unprofitable. The revenue from the assessment was estimated at $6 million. This provision was challenged on the basis that its budgetary changes were merely incidental to its nonbudgetary components. As advised by the Parliamentarian, the Vice President rejected the point of order. The motion to appeal the ruling on this section, Section 1106(a), was rejected by a 43-57 vote margin.

• A point of order was raised against four provisions of the Deficit Reduction Act of 2005 on the basis that the provisions would result in no change in budgetary outlays or revenues and that the budgetary changes made by these provisions were merely incidental. The point of order was sustained against three of the provisions in question but was not sustained against Section 7404, which remained in the reconciliation bill. Section 7404 was designed to require states that accept Medicaid funds to make foster care maintenance payments on behalf of each child who has been removed from the home of a relative and to expand adoption assistance.

• In 2015, the Senate Parliamentarian advised that Republicans could not use budget reconciliation to repeal the individual and employer mandates that were established by the Affordable Care Act. The budget reconciliation bill was instead used to set the penalties for noncompliance with the individual and employer mandates to $0, which the Parliamentarian did not advise against.

Point of order sustained: provisions struck

• In 1995, a point of order was raised under the Byrd Rule against Section 7191(a) of the Balanced Budget Act of 1995 on the basis that the provision in question would result in no change in budgetary outlays or revenues. This section of the reconciliation bill would have banned the use of federal funding for abortions under Medicaid. Robert Dove, the Senate Parliamentarian at the time, advised that the provision was extraneous, and the point of order was sustained. A motion to waive the Byrd Rule for this provision was defeated with 55 votes in favor and 45 against. Dove said, "In my view, that was not there to save money but to implement a huge social policy. It was knocked out of the bill. But such calls are incredibly difficult, because you’re going into motive. It’s not just what a provision does, but why was it put there.”

• In 2015, a point of order was raised and sustained against Section 105(b) of the Restoring Americans' Healthcare Freedom Reconciliation Act of 2015. This section would have repealed Section 1342 of the Affordable Care Act, which had to do with the establishment of risk corridors from 2014 to 2016. It was ruled that the budgetary changes made by this section were merely incidental to its non-budgetary components. A motion to waive the Byrd Rule was defeated with 52 votes in favor and 47 votes against.
  • The Congressional Research Service also lists four amendments to the Restoring Americans' Healthcare Freedom Reconciliation Act of 2015 that had points of order raised and sustained against them. The first three of these amendments all had to do with firearm regulation. The other amendment had to do with the Protect America Act. All four points of order were raised on the basis that the proposed amendments were outside the committee's jurisdiction. None of the motions to waive the Byrd Rule for these amendments were successful.

• In 2017, the Senate considered an amendment to the Tax Cuts and Jobs Act with provisions that would make it out of order to consider any legislation that would cut Medicare, Medicaid, or Social Security. If an action is out of order in the Senate, that means that it is against Senate rules and Senators can make points of order against the action. A Byrd Rule point of order was raised and sustained against the amendment on the basis that it made no change in budgetary outlays or revenues. The motion to waive the Byrd Rule failed with 46 votes in favor and 54 against.

• Amendment no. 972 of the American Rescue Plan Act of 2021 sought to raise the federal minimum wage. A point of order was raised against the amendment on the basis that its budgetary changes were merely incidental to its non-budgetary components. The point of order was sustained and the motion to waive the Byrd Rule was defeated with 42 votes in favor and 58 against.

Baselines: financial projections

What is a baseline?

A baseline is a projection of the nation’s finances—including spending, revenue, and debt—assuming no changes to current law. For budget reconciliation, the baseline is typically concerned with the next 10 years. The Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) are required by the Congressional Budget and Impoundment Control Act of 1974 to produce current law baselines annually, but Congress has the power to change the way baselines are calculated. Congress could decide to instruct the OMB and CBO to produce current policy baselines instead.

Congressional rules require the cost of certain legislation to be offset. Which type of baseline Congress uses can determine the amount that needs to be offset.

What is a current law baseline?

A current law baseline considers budgetary changes scheduled in law, including sunset clauses, when projecting costs and revenue.

In a case of extending tax cuts that were implemented with a sunset clause, a current law baseline would determine that extending the tax cuts would cost the government revenue because the tax cuts are scheduled to expire in existing law, meaning that the government is not required to continue them.

What is a current policy baseline?

A current policy baseline does not consider scheduled changes such as sunset dates.

A current policy baseline would determine that extending tax provisions past their sunset date, or making them permanent, would cost the government nothing because the method ignores scheduled changes and accounts only for the current budget policy. This determination is made because extending the provision doesn’t cost the government any more than it is currently spending.

Why does it matter for budget reconciliation (2025)?

In amendments to the 2025 House budget resolution, Senate Republicans sought to address the sunset provisions of certain tax cuts from the Tax Cuts and Jobs Act of 2018. These tax cuts originally needed sunset provisions to pass because they were part of a reconciliation package, meaning that they couldn't contain provisions that would increase the deficit for a fiscal year outside of the 10-year window.

Senate Republicans addressed these provisions using a current policy baseline. This method of accounting would allow Congress to extend these cuts or make them permanent without counting as much toward the deficit as if they were to use a current law baseline:

• According to the current policy calculation method, extending the 2018 tax cuts, and instituting new ones, in the Senate's amended version of the budget resolution will cost the government $1.5 trillion.
• The House's original version of the bill used a current law baseline to determine the cost of its tax cuts to be $4.5 trillion.
• The cost of the tax cuts in the Senate's amended version is $5.3 trillion according to calculations made using a current law baseline.

The use of a current policy baseline has sparked debate over its legitimacy and whether the Senate Parliamentarian can rule it out under the Byrd Rule. Determinations about the Senate Parliamentarian's authority in this case may have implications as to whether or not provisions relying on a current policy baseline can be struck from the bill under the Byrd Rule on the basis of their calculation.

Arguments regarding the use of a current policy baseline

Arguments supporting the use of a current policy baseline

Current policy baselines better reflect reality.

Proponents of current policy baselines argue that this method of financial projection better represents the effects a policy change would have on the affected people or entities.

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Consider a family that paid $10,000 in federal taxes for 2025 but for whom, under existing law, tax rates are scheduled to double in 2026, meaning the family would have to pay $20,000 in federal taxes that year. A current-law baseline would assume this scheduled change in the law. But if Congress later decides to increase tax rates by only 50%, using a current-law baseline would count the family as having received a $5,000 tax cut. Of course, in the real world, the family didn’t receive a tax cut at all; they got a $5,000 tax increase.

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Current policy baselines could provide greater opportunities for spending reductions by providing congressional committees increased flexibility.

Proponents of current policy baselines argue that the use of this accounting method wouldn't prevent Congress from using the reconciliation process to reduce spending. They further argue that using this method would provide more opportunities for spending reductions by increasing the flexibility that could be afforded to congressional committees.

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In the past, budget resolutions have instructed committees to achieve rather modest levels of deficit reduction—say, $1 billion—with the understanding that they would find additional savings. This [current policy] approach ensures that the focus is on deficit reduction, provides flexibility for Congress to come up with additional savings, and protects the reconciliation process from getting derailed by technical violations of the committee allocation rules.

”

Arguments opposing the use of a current policy baseline

Current policy baselines do not reflect reality.

Opponents of current policy baselines argue that because this method assumes all policies are permanent, even if they are scheduled to be temporary, it does not accurately reflect reality.

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A common excuse for using a current policy baseline – which assumes that all temporary policies are actually permanent – is that it better reflects the 'reality' of what will happen. However, this argument is nihilistic, ahistorical, and inaccurate. Assuming anything that is likely to happen will happen effectively assumes Congress has little autonomy or decision-making power and establishes a type of circular logic where any policy that lawmakers want to enact is assumed to be costless because it already reflects 'reality.'

”

Current policy baselines would make spending cuts less likely.

Opponents of current policy baselines argue that their use would disincentivize spending cuts because Congress would no longer be required to offset budgetary items that would require offset under a current law baseline.

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Some argue that using a current policy baseline does nothing to prevent lawmakers from reducing deficits via spending cuts. While it is true that this gimmick wouldn’t prevent spending cuts, it would make spending cuts much less likely to occur because offsets would no longer be necessary to prevent increases in the debt.

”

Arguments regarding who decides if Congress can use a current policy baseline

The Senate Parliamentarian has the authority to decide if Congress can use a current policy baseline. Democrats in the Senate stated they would ask for the parliamentarian to rule that a current law baseline, not a current policy baseline, must be used for the budget resolution and reconciliation process.

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My sense is they’re going to need a ruling from the parliamentarian. I don’t think they can bypass the parliamentarian. I think they’re going to need the ruling. That would be unheard of.

”

The budget committee chairman has the authority to decide if Congress can us a current policy baseline. Republicans in the Senate stated that they believe the law is very clear that the determination as to whether to use a current law baseline or a current policy baseline is supposed to be made by the budget committee chairman rather than the Senate Parliamentarian.

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...The law seems to me to be very clear: It’s not a ruling by the parliamentarian. The budget chair gets to decide which baseline to use. It happened when Democrats were in the majority. [Former Senate Budget Committee Chair] Kent Conrad [D-N.D.] years ago used that.

”

Overview of budget reconciliation bills in 2025

See also: One Big Beautiful Bill Act

Budget reconciliation bills are drafted by committees according to reconciliation directives contained in the budget resolution. These directives initiate the reconciliation process and set limitations on the content of the legislation included in a reconciliation bill. Republican party leaders said they would use the budget reconciliation process in 2025 to pass priority policies, including provisions concerning taxes, the border and immigration, and the debt limit.

The One Big Beautiful Bill Act (2025) is the legislative package that was passed through budget reconciliation by Republicans during the first year of President Donald Trump's (R) second term. It was signed into law on July 4.

Summary of the bill

The following bill summary was prepared by the Congressional Research Service for the final version of the bill. The full text is available in the 2025 budget reconciliation detailed timeline section below.

“

This bill reduces taxes, reduces or increases spending for various federal programs, increases the statutory debt limit, and otherwise addresses agencies and programs throughout the federal government. It is known as a reconciliation bill and includes legislation submitted by several congressional committees pursuant to provisions in the FY2025 congressional budget resolution (H Con. Res. 14) that directed the committees to submit legislation to the House or Senate Budget Committee that will increase or decrease the deficit and increase the statutory debt limit by specified amounts. (Reconciliation bills are considered by Congress using expedited legislative procedures that prevent a filibuster and restrict amendments in the Senate.) TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY This title addresses a wide range of Department of Agriculture (USDA) programs, including by changing the Supplemental Nutrition Assistance Program (SNAP) and extending programs authorized by the Agriculture Improvement Act of 2018 (commonly known as the 2018 farm bill). Subtitle A--Nutrition (Sec. 10101) This section prohibits USDA from increasing the cost of the Thrifty Food Plan (TFP) based on a reevaluation of the contents of the TFP (i.e., the market basket of goods). Further, any annual adjustment to the cost of the plan must be based on the Consumer Price Index for All Urban Consumers. As background, USDA created the TFP (the cost of purchasing a nutritionally adequate low-cost diet), which is used to determine maximum monthly benefits under the Supplemental Nutrition Assistance Program (SNAP). USDA calculates the cost of the TFP each year to account for food price inflation. Maximum allotments are set at the monthly cost of the TFP for a four-person family, adjusted for family size. Under a provision of the 2018 farm bill, USDA must reevaluate the market basket of goods every five years based on current food prices, food composition data, consumption patterns, and dietary guidance. (Sec. 10102) This section expands the applicability of work requirements for SNAP recipients who are able-bodied adults without dependents (ABAWDs). As background, these SNAP recipients have work-related requirements in addition to the general SNAP work registration and employment and training requirements. SNAP law limits benefits to ABAWDs to 3 months out of a 36-month period, unless the participant meets the additional work-related requirements. Specifically, the section amends the exemptions to this requirement. First, the section applies the work requirements for ABAWDs to adults who are not over 65 years old, whereas these requirements currently apply to adults who are not over 55 years old. Second, the ABAWD exemption for a parent or household member with responsibility for a dependent child is restricted to a dependent child under the age of 14. Currently, those with a child under the age of 18 are exempt from the requirements. This section includes an exception for individuals who are Indians, Urban Indians, or California Indians (as these terms are defined by the Indian Health Care Improvement Act). In addition, the section eliminates the current exemptions from the ABAWD work requirements for homeless individuals, veterans, and certain foster care individuals (those who are 24 years old or younger and were in foster care on the date of attaining 18 years of age or a higher age). Finally, this section modifies the ABAWD waiver program's allowable state exemptions. Under current law, an ABAWD waiver program allows state exemptions based on an area having an unemployment rate of over 10% or an insufficient number of jobs. The section allows Alaska and Hawaii to qualify for the state exemption with an unemployment rate that is at or above 1.5 times the national unemployment rate. Further, the section repeals the provision that allows a state exemption if that area does not have a sufficient number of jobs. (Sec. 10103) This section limits the availability of the Standard Utility Allowance (SUA) for determining SNAP income eligibility. Specifically, only households that include an elderly or disabled member may be considered automatically eligible for the SUA based on participation in the Low Income Home Energy Assistance Program (LIHEAP) or a similar energy assistance program. As background, when determining a household’s eligibility for SNAP, states consider the total shelter costs for a household, including the cost of utilities. States can use SUAs, which are standard amounts that represent low-income household utility costs in the state or local area. Currently, all LIHEAP participants who receive a minimum benefit are eligible for the SUA for determining SNAP income eligibility. (Sec.10104) This section prohibits any service fee associated with an internet connection from being used in computing the excess shelter expense deduction for the purposes of determining the size of household SNAP benefits. (Sec. 10105) This section establishes state-matching fund requirements for the cost of SNAP program allotments beginning in FY2028. The state contribution ranges from 0% to 15% for the cost of SNAP program allotments and is based on the state’s SNAP payment error rate. Currently, the state match is 0%. For FY2028, a state may elect either the FY2025 or FY2026 payment error rate to calculate its state-matching fund requirement. For FY2029 and each fiscal year thereafter, the state match is calculated using the payment error rate that is three fiscal years prior. Any state that has a payment error rate that is less than 6% will have a state match of 0% (i.e., the state does not have to contribute). A state with a payment error rate that is at least 6% but less than 8% must contribute 5%, at least 8% but less than 10% must contribute 10%, and 10% or greater must contribute 15%. (Sec. 10106) This section reduces the amount that USDA may pay a state agency for administrative costs for the operation of SNAP to 25% of all administrative costs beginning in FY2027 and for each fiscal year thereafter. Currently, USDA must pay 50% of all administrative costs, thus this section increases the state share of administrative costs from 50% to 75%. (Sec. 10107) This section eliminates funding for the SNAP Nutrition Education and Obesity Prevention Grant Program (SNAP-ED). (Sec. 10108) This section limits SNAP benefits to individuals who reside in the United States and are (1) U.S. citizens or U.S. nationals; (2) aliens lawfully admitted for permanent residence as an immigrant, with exceptions; (3) aliens who have been granted the status of Cuban or Haitian entrant; or (4) individuals who are lawfully residing in the United States in accordance with the Compacts of Free Association between the United States and Micronesia, the Marshall Islands, and Palau. Currently, SNAP eligibility extends to additional individuals who are classified as an alien under federal law, including an alien who has qualified for conditional entry under the asylum and refugee laws. Subtitle B-- Forestry (Sec. 10201) This section rescinds certain funds provided to the Forest Service as part of the Inflation Reduction Act of 2022. For example, this includes the rescission of funds for the protection of old-growth forests on National Forest System land, grants for nonfederal forest landowners for climate mitigation or forest resilience practices, grants for state and private forestry conservation programs for tree planting, and administrative costs for the National Forest System to implement these and other related programs. Subtitle C--Commodities This subtitle amends and extends commodity support programs. For example, the subtitle extends the Price Loss Coverage Program, the Agricultural Risk Coverage Program, and Dairy Margin Coverage through crop year 2031. It also modifies various requirements for the programs. (Sec. 10313) This section provides for a number of changes to Dairy Margin Coverage (DMC), which include changing the definition of production history to remove the consideration of production at the time the dairy operation first registered to participate in the DMC program; setting production history for the DMC program as the highest annual milk marketings for participating dairies during calendar year 2021, 2022, or 2023; raising the coverage limit to the first 6 million pounds for both Tier I and Tier II premiums, from the first 5 million pounds; and allowing producers to receive a 25% premium discount for a one-time premium election covering calendar years 2026-2031. Subtitle D--Disaster Assistance Programs This subtitle expands the types of eligible losses covered under the permanently authorized agricultural disaster assistance programs, which include the Livestock Indemnity Program; the Livestock Forage Disaster Program; the Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program; and the Tree Assistance Program. This subtitle also increases coverage levels and lowers the threshold for triggering payments for certain eligible losses. Subtitle E--Crop Insurance This subtitle increases certain crop insurance premium subsidies and increases additional premium subsidies available for beginning farmers and ranchers. The subtitle also increases coverage levels for Supplemental Coverage Option and Whole Farm Revenue Protection policies, increases support for administrative and operating costs incurred by approved crop insurance providers, and increases funds available for program compliance and integrity. In addition, this subtitle provides for the establishment of a Poultry Insurance Pilot Program in order to provide index-based insurance for contract poultry growers. Subtitle F--Additional Investments in Rural America (Sec. 10601) This section reauthorizes or modifies the funding levels for the following programs through FY2031: Agriculture Conservation Easement Program (ACEP), Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP), Regional Conservation Partnership Program (RCPP), Grassroots Source Water Protection Program, Voluntary Public Access and Habitat Incentive Program, Watershed and Flood Prevention Operations Program, and Feral Swine Eradication and Control Pilot Program. This section also rescinds the unobligated funds that were provided for the ACEP, EQIP, CSP, and RCPP conservation programs as part of the Inflation Reduction Act of 2022. (Sec. 10602) This section directs USDA to carry out a program to encourage the accessibility, development, maintenance, and expansion of commercial export markets for U.S. agricultural commodities. This section also provides $285 million in mandatory funding for the program for FY2027 and each fiscal year thereafter. (Sec. 10603) This section extends funding for the Emergency Food Assistance Program (TEFAP) through FY2031. TEFAP provides food commodities (and cash support for storage and distribution costs) through states to local emergency feeding organizations (e.g., food banks). (Sec. 10604) This section reauthorizes and provides funding for a number of USDA research initiatives. For example, this section provides specified funds to the 1890 National Scholars Program for FY2026 for student scholarships. This National Institute of Food and Agriculture program provides grants to 1890 Institutions (i.e., historically Black colleges and universities that belong to the U.S. land-grant university system) for students who intend to pursue a career in the food and agricultural sciences. This section provides the Specialty Crop Research Initiative with $175 million in mandatory funding for FY2026. Currently, the program is funded at $80 million for each fiscal year. This section also provides funding for competitive grants to assist in the construction, alteration, acquisition, modernization, renovation, or remodeling of Agricultural Research Facilities. (Sec. 10605) This section reauthorizes, and extends funding for, the bioenergy program for advanced biofuels (i.e., Advanced Biofuel Payment Program) through FY2031. The program provides payments to fuel producers to support and expand production of advanced biofuels (i.e., not derived from corn starch). (Sec. 10606) This section provides additional funding for the Plant Pest and Disease Management Disaster Prevention Program for FY2026 and each fiscal year thereafter. This section provides additional funding for the Specialty Crop Block Grant Program for FY2026 and each fiscal year thereafter. Under the block grant program, USDA provides grants to the state departments of agriculture to enhance the competitiveness of specialty crops (i.e., fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops, including floriculture). The section also reauthorizes, and extends funding for, organic production and market data initiatives through FY2031. This section reauthorizes, and extends funding through FY2026, for USDA to carry out the modernization and improvement of international trade technology systems and data collection on imports of organically produced agricultural products accepted into the United States. The section also reauthorizes through FY2031 the Organic Certification Cost Share Program, which provides cost share assistance to producers and handlers of agricultural products who are obtaining or renewing their certification under the National Organic Program. This section reauthorizes, and extends funding through FY2026, for the multiple crop and pesticide use survey of farmers. The USDA Office of Pest Management Policy conducts this survey to collect data for risk assessment modeling and mitigation for an active ingredient. (Sec. 10607) This section increases funding for the National Animal Health Laboratory Network. Specific increases in funding are also provided for the National Animal Disease Preparedness and Response Program and the National Animal Vaccine and Veterinary Countermeasures Bank. This section extends and increases funding for the Sheep Production & Marketing Grant Program through FY2026. This program seeks to strengthen and enhance the production and marketing of sheep and sheep products in the United States. This section also extends the Pima Agriculture Cotton Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on cotton fabric that are higher than tariffs on certain apparel articles made of cotton fabric; Agriculture Wool Apparel Manufacturers Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on wool fabric that are higher than tariffs on certain apparel articles made of wool fabric; Wool Research and Promotion Program through FY2031, which provides grants to assist U.S. wool producers with improving the quality of wool and with developing and promoting the wool market; and Emergency Citrus Disease Research and Development Trust Fund through FY2031, which funds a program that aims to bring together scientists to find scientifically sound and financially sustainable solutions to Huanglongbing (i.e., citrus greening, a bacterial disease spread by an insect that feeds on citrus). TITLE II--COMMITTEE ON ARMED SERVICES (Sec. 20001) This section provides additional funding for FY2025 to the Department of Defense (DOD) for the Marine Corps Barracks 2030 initiative, the Defense Health Program, supplemental payments of Basic Allowance for Housing to military personnel, and tuition assistance and child care assistance for members of the Armed Forces. The section also provides statutory authority to extend from 14 to 21 days eligibility for Temporary Lodging Expense (TLE) for certain servicemembers undergoing a permanent change of station. Additionally, the section temporarily increases authorized investment amounts and provides additional authorization for the acquisition or construction of certain military housing through private contracts. (Sec. 20002) This section provides additional funding for FY2025 for the shipbuilding industrial base and various naval shipbuilding activities. (Sec. 20003) This section provides additional funding for FY2025 for the development of (1) space-based missile intercept capabilities, (2) military space-based sensors, and (3) the continued development of ground-based missile defense systems and related infrastructure. (Sec. 20004) This section provides additional funding for FY2025 for various military weapon systems, including hypersonic, air-to-air, cruise, and anti-ship missiles. The section also provides additional funding for FY2025 for the Industrial Base Fund. (Sec. 20005) This section provides additional funding for FY2025 to expand the small, unmanned aerial system (UAS) industrial base, to advance the use of artificial intelligence in these and other systems, and to support the integration of commercial developments in military technology. The section also provides additional funding to finance loans and loan guarantees by the DOD Office of Strategic Capital. (Sec. 20006) This section provides additional funding for FY2025 to replace current business systems, deploy automation, and deploy artificial intelligence to accelerate audits of DOD financial statements. (Sec. 20007) This section provides additional funding for FY2025 to (1) modernize the capabilities of fighter, transport, and other military aircraft; (2) prevent the retirement of certain fighter aircraft (e.g., F-22); and (3) produce next-generation manned and unmanned aircraft. (Sec. 20008) This section provides additional funding for FY2025 for nuclear defense resources and nuclear forces development and production. This includes additional funding to expand the production capacity of the B-21 long-range bomber aircraft. The section also provides additional funding for FY2025 for the National Nuclear Security Administration. (Sec. 20009) This section provides additional funding for FY2025 for (1) various military exercises and infrastructure in the Indo-Pacific region, and (2) the development and procurement of military satellites. (Sec. 20010) This section provides additional funding for FY2025 to enhance and modernize (1) military depots and shipyards, (2) Special Operations Command (SOCOM) equipment, and (3) Air Force facilities. (Sec. 20011) This section provides additional funding for FY2025 to support border operations, including deployment of military personnel. (Sec. 20012) This section provides additional funding for FY2025 for the DOD Office of Inspector General to monitor the activities for which funding is provided under this title. (Sec. 20013) This section authorizes each military department to use funding under this title for military construction, land acquisition, and military family housing. Each military department must submit a detailed spending plan to Congress. TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS (Sec. 30001) This section reduces funding for the Consumer Financial Protection Bureau. (Sec. 30002) This section rescinds unobligated funds from the Green and Resilient Retrofit Program under the Department of Housing and Urban Development (HUD). The program provides funding for energy efficiency improvements in multifamily properties receiving HUD assistance. (Sec. 30003) This section closes the Securities and Exchange Commission (SEC) Reserve Fund and transfers the remaining amounts to the general fund of the Treasury. The fund pays for SEC expenses and is not subject to annual appropriation. (Sec. 30004) This section provides additional funding to carry out activities under the Defense Production Act of 1950. The act confers on the President a broad set of authorities to influence domestic industry in the interest of national defense. TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION (Sec. 40001) This section provides the Coast Guard with funds for FY2025, to remain available through FY2029, to use expedited processes to (1) procure or acquire new operational assets and systems; (2) maintain existing assets and systems; (3) design, construct, plan, engineer, and improve necessary shore infrastructure; and (4) enhance operational resilience for monitoring, search and rescue, interdiction, hardening of maritime approaches, and navigational safety. This includes specified funds for fixed and rotary wing aircraft, long-range unmanned aircraft and base stations, Offshore Patrol Cutters, Fast Response Cutters, Polar Security Cutters, Arctic Security Cutters, light and medium icebreaking cutters, and depot maintenance. (Sec. 40002) This section renews the authority of the Federal Communications Commission (FCC) to auction licenses for the use of radio frequency spectrum and requires the FCC to auction at least 800 megahertz of spectrum within a specified time frame. Specifically, this section reauthorizes the FCC’s use of competitive bidding (i.e., auctions) to grant licenses for the use of specific frequencies through September 30, 2034. (The FCC’s auction authority must be renewed by Congress periodically. It expired on March 9, 2023, and has not been renewed.) However, the FCC is not authorized to auction certain frequencies used primarily by the Department of Defense. During this period of renewed auction authority, the FCC is required to auction at least 300 megahertz of spectrum, including at least 100 megahertz in specified frequencies (known as the Upper C-Band) within two years of this title’s enactment. Further, within four years of this title’s enactment, the National Telecommunications and Information Administration (NTIA) must identify 500 megahertz of additional spectrum currently allocated to the federal government for reallocation and auction. Specifically, the NTIA must select spectrum at frequencies between 1.3 and 10.5 gigahertz for reallocation to nonfederal use or shared federal use for full-power commercial licensed use cases (e.g., commercial mobile phone service). In selecting spectrum for reallocation, the NTIA must assess the feasibility of reallocating specific frequencies with the goal of maximizing auction proceeds. The FCC must auction the frequencies identified for reallocation within a specified time frame, and must complete auctions for the full 500 megahertz within eight years of this title’s enactment. If necessary to protect U.S. national security, the President must modify or withdraw any frequency identified for reallocation at least 60 days before an auction of that frequency. Finally, this section provides funding for the NTIA to conduct a timely spectrum analysis of certain frequency bands and to publish a report, biennially through 2034, on the value of all spectrum used by federal entities. (Sec. 40003) This section provides the Federal Aviation Administration (FAA) with specified funds for FY2025, to remain available through FY2029. This includes additional funding for telecommunications infrastructure modernization and systems upgrades; radar systems replacement; runway safety technologies, runway lighting systems, and airport surface surveillance technologies; Automated Weather Observing Systems and Visual Weather Observing Systems; the Don Young Alaska Aviation Safety Initiative; a new air route traffic control center (ARTCC) and an ARTCC Realignment and Consolidation Effort; recapitalization and consolidation of terminal radar approach control facilities (TRACONs); the deployment of remote tower technology at untowered airports; and air traffic controller advanced training technologies. The FAA must submit a report to Congress every 90 days on these expenditures. (Sec. 40004) This section requires the FAA to impose a specified fee on each commercial space launch or reentry carried out beginning in 2026. This section also establishes an account within the U.S. Treasury wherein all commercial space launch and reentry fees must be deposited. The FAA must use a certain portion of such funds for (1) expenses of the FAA’s Office of Commercial Space Transportation, which administers commercial space launch and reentry permitting; and (2) a project to expedite the development, acquisition, and deployment of technologies or capabilities to aid in space launch and reentry integration. (Sec. 40005) This section provides specified funding to the National Aeronautics and Space Administration (NASA) for Moon and Mars missions, infrastructure improvements at NASA facilities, and other NASA projects. Specifically, this section includes funding for the procurement of a high-performance Mars telecommunications orbiter; for the procurement and operation of the Space Launch System for Artemis missions IV and V; and for expenses related to the operation and eventual deorbiting of the International Space Station. This section also requires NASA to identify a space vehicle that has carried astronauts and flown in space to be relocated and placed on public display near a NASA field center. The space vehicle must be transported to this new location within 18 months of this title’s enactment. This section provides funding to NASA to carry out this requirement, including certain funds that must be transferred to a selected entity for the construction of a facility to house the space vehicle. (Sec. 40006) This section sets the civil penalty to $0 for a violation by a manufacturer of the Corporate Average Fuel Economy (CAFE) standard. Currently, the National Highway Traffic Safety Administration’s (NHTSA’s) CAFE standards regulate how far vehicles must travel on a gallon of fuel. NHTSA enforces the standards through civil penalties. By reducing the penalty to $0, this section effectively eliminates the civil penalty and the ability of NHTSA to enforce the standards. (Sec. 40007) This section increases the amount of the lease payment that the Metropolitan Washington Airports Authority (MWAA) must pay to the federal government for Ronald Reagan Washington National Airport and Washington Dulles International Airport. Specifically, MWAA must pay $15 million per year (adjusted annually for inflation) beginning in FY2027. This amount must be renegotiated at least once every 10 years to ensure that the amount is not less than $15 million in 2027 dollars. Under current law, MWAA pays $3 million per year (adjusted annually for inflation). For FY2025, the projected payment is approximately $7.5 million. (Sec. 40008) This section rescinds specified funds that were provided to the National Oceanic and Atmospheric Administration (NOAA) for certain facilities, activities, and research. Specifically, this section rescinds funds that were provided to NOAA for (1) the provision of financial or technical assistance to coastal states and other entities for conservation, restoration, and protection of coastal and marine habitats and to enable preparation for extreme weather; (2) NOAA facilities, including piers, fisheries laboratories, and national marine sanctuaries; (3) reviews of planning, permitting, and approval processes; and (4) weather research and forecasting innovations, including a grant program to support climate research. (Sec. 40009) This section reduces funding for the Corporation for Travel Promotion (i.e., Brand USA) to $20 million per year through FY2027 from the current level of $100 million per year. Established by the Travel Promotion Act of 2009, Brand USA is a public-private partnership tasked with promoting tourism in the United States. (Sec. 40010) This section rescinds the unobligated balances for the FAA Alternative Fuel and Low-Emission Aviation Technology Program, which includes the Fueling Aviation’s Sustainable Transition (FAST), that was funded as part of the Inflation Reduction Act of 2022. (Sec. 40011) This section rescinds specified funds that were provided for the Public Wireless Supply Chain Innovation Fund, a competitive grant program administered by the National Telecommunications and Information Administration that funds efforts to accelerate the development, deployment, and adoption of Open Radio Access Networks (Open RAN). (Open RAN is a nonproprietary, standardized network deployment approach that promotes open networks with interoperable equipment and virtualized network operations.) TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES Subtitle A--Oil and Gas Leasing (Sec. 50101) This section generally reduces restrictions on onshore development of oil and gas on federal lands, including by (1) decreasing the minimum royalty rates, (2) reinstating noncompetitive leasing, (3) directing the Department of the Interior to immediately resume onshore quarterly lease sales, and (4) directing Interior to approve applications that allow for the commingling of production from two or more sources (e.g., the area of an oil and gas lease and nonfederal property) before production reaches the point of royalty measurement if certain conditions are met. (Sec. 50102) This section generally reduces restrictions on offshore development of oil and gas on federal lands, including by directing Interior to hold a specified number of offshore oil and gas lease sales on certain submerged lands of the Outer Continental Shelf (OCS), including areas in the Gulf of America and the Cook Inlet Planning Area in Alaska. This section also directs Interior to approve operator requests to commingle production from multiple reservoirs within a single wellbore completed on the OCS of the Gulf of America unless conclusive evidence shows the practice would be unsafe or reduce the recovery of oil. Further, this section decreases the minimum royalty rates for federal leases for offshore development of oil and gas. This section also modifies the Gulf of Mexico Energy Security Act of 2006 to raise the cap on the distribution of OCS revenues from $500 million to $650 million per year for FY2025-FY2034. (Sec. 50103) This section ends royalty payments on methane gas extracted from federal lands. (Sec. 50104) This section modifies provisions concerning the production of oil and gas from the Arctic National Wildlife Refuge (ANWR) in Alaska. (Sec. 50105) This section restores and resumes the National Petroleum Reserve-Alaska (NPR-A) oil and gas program. It also outlines how the revenues derived from the program must be divided between Alaska and the federal government. Subtitle B--Mining (Sec. 50201) This section directs Interior to publish an environmental review, hold certain coal lease sales, and issue the leases for certain coal lease applications within 90 days after enactment. (Sec. 50202) This section temporarily decreases the royalty rate for coal leases on federal lands. (Sec. 50203) This section requires Interior to make available for lease known recoverable coal resources of at least 4 million additional acres on certain federal land. (Sec. 50204) This section authorizes mining of all federal coal reserves located in federal land subject to a previously approved mining plan and adjacent to coal reserves in adjacent state or private lands. Subtitle C--Lands (Sec. 50301) This section directs the Forest Service to annually, beginning in FY2026 and through FY2034, to sell a quantity of timber on National Forest System land that is at least 250 million board feet greater than the quantity that was sold in the previous fiscal year, subject to forest plan limits. The Forest Service must annually enter into at least 40 20-year or longer contracts with private persons or other entities for the sale of national forest materials for FY2025-FY2034. The Bureau of Land Management (BLM) must annually, beginning in FY2026 and through FY2034, sell a quantity of timber on public land that is at least 20 million board feet greater than the quantity that was sold in the previous fiscal year, subject to resource management plan limits. This section also directs the BLM to annually enter into at least five 20-year or longer contracts with private persons or other entities to dispose of vegetative materials on certain federal lands for FY2025-FY2034. (Sec. 50302) This section establishes requirements related to renewable energy fees on federal lands, including by providing statutory authority for annual acreage rent for wind and solar rights-of-way. (Sec. 50303) This section provides a mechanism for states, counties, and the federal government to share revenues from renewable energy projects on public lands. (Sec. 50304) This section rescinds certain funding for Interior to carry out certain projects concerning the conservation, protection, and resiliency of lands and resources administered by the National Park Service (NPS) and the BLM. This section also rescinds funding for (1) certain conservation and ecosystem and habitat restoration projects on lands administered by the NPS and the BLM. and (2) hiring NPS employees. (Sec. 50305) This section provides funding to the NPS for events, celebrations, and activities related to the 250th anniversary of America’s founding. Subtitle D--Energy (Sec. 50401) This section provides funding for the Strategic Petroleum Reserve (SPR). It also repeals a provision that requires the Department of Energy (DOE) to draw down and sell a specified quantity of crude oil from the SPR during FY2026-FY2027. (Sec. 50402) This section reinstates the cap on the total amount of loans that may be provided under the Advanced Technology Vehicles Manufacturing Loan Program, a DOE program that provides loans to facilities that manufacture advanced vehicles that emit either a low amount or no amount of greenhouse gases. This section also rescinds the unobligated funds that were provided by the Inflation Reduction Act for various energy programs, such as State-Based Home Energy Efficiency Contractor Training Grants, the Advanced Technology Vehicles Manufacturing Loan Program, and the Tribal Energy Loan Guarantee Program. (Sec. 50403) This section revises the types of projects eligible for energy infrastructure reinvestment financing. In particular, this financing is no longer available for projects that avoid or reduce air pollutants or greenhouse gas (GHG) emissions. Additionally, fossil fuel projects under this program are no longer required to have controls or technologies to avoid or reduce air pollutants or GHG emissions. The section expands the program to include projects involving critical minerals. Projects that support or enable the provision of known or forecastable electric supply at time intervals necessary to maintain or enhance grid reliability or other system adequacy needs are also now eligible for this financing. The section also provides additional funding for the program. Subtitle E--Water (Sec. 50501) This section provides funding to the Bureau of Reclamation for construction and associated activities that increase the capacity of existing Reclamation surface water storage facilities or conveyance facilities. TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS (Sec. 60001) This section rescinds unobligated funds for the program under which the Environmental Protection Agency (EPA) provides (1) grants and rebates to replace certain medium-duty vehicles (e.g., school buses) and heavy-duty vehicles (e.g., garbage trucks) with zero-emission vehicles, and (2) awards to replace such vehicles in communities located in areas designated as nonattainment areas under the Clean Air Act (e.g., areas that do not meet national air quality standards). (Sec. 60002) This section repeals and rescinds unobligated funds for the Greenhouse Gas Reduction Fund, which provides financial and technical assistance to states and other eligible recipients to help enable low-income and disadvantaged communities carry out activities to reduce greenhouse gas emissions. (Sec. 60003) This section rescinds unobligated funds for an EPA program that gives grants, rebates, and loans under the Energy Policy Act of 2005 to identify and reduce diesel emissions resulting from goods movement (e.g., distribution of raw materials and consumer products) facilities as well as vehicles servicing those facilities in low-income and disadvantaged communities. (Sec. 60004) This section rescinds unobligated funds for a variety of programs that provide incentives to monitor and reduce air pollution and greenhouse gases, including funding for grants and other activities to deploy, integrate, support, and maintain stations, technology, and other methods to monitor air toxins; expand the national ambient air quality monitoring network with new multi-pollutant monitoring stations; replace, repair, operate, and maintain existing monitors; deploy, integrate, and operate air quality sensors in low-income and disadvantaged communities; address emissions from wood heaters; monitor emissions of methane; conduct research and development related to the prevention and control of air pollution; and encourage states to adopt and implement greenhouse gas and zero-emission standards for mobile sources. (Sec. 60005) This section rescinds unobligated funds provided for grants and other activities to monitor and reduce greenhouse gas emissions and other air pollutants at schools in low-income and disadvantaged communities. Further, it rescinds funding for technical assistance to schools in low-income and disadvantaged communities to (1) address environmental issues; (2) develop school environmental quality plans that include standards for school building, design, construction, and renovation; and (3) identify and mitigate ongoing air pollution hazards. (Sec. 60006) This section rescinds unobligated funds for a low emissions electricity program that provides education, technical assistance, and outreach to reduce greenhouse gas emissions that result from domestic electricity generation and use. (Sec. 60007) This section rescinds unobligated funds provided under the EPA’s Renewable Fuel Standard Program for the development and establishment of tests and protocols regarding the environmental and public health effects of a fuel or fuel additive; the collection and analysis of data to update applicable regulations, guidance, and procedures for determining the amount of greenhouse gas emissions from a fuel over the fuel's life cycle (e.g., production, processing, transport); the review, analysis, and evaluation of the impacts of all transportation fuels on the public as well as on low-income and disadvantaged communities; and supporting investments in advanced biofuels. (Sec. 60008) This section rescinds unobligated funding for implementing the American Innovation and Manufacturing Act of 2020, which directs the EPA to address hydrofluorocarbons (HFC). HFCs are greenhouse gases that are used in applications such as air conditioning, refrigeration, fire suppression, and aerosols. (Sec. 60009) This section rescinds unobligated funding for updating the EPA's Integrated Compliance Information System and any associated systems, necessary information technology infrastructure, or public access software tools to ensure access to compliance data and related information. Further, it also rescinds funding for grants to states, Indian tribes, and air pollution control agencies to update their systems to ensure communication with EPA’s system. Finally, it rescinds funding to the EPA for updating inspection software or acquiring such software or devices on which to run the software. (Sec. 60010) This section rescinds unobligated funding provided for the EPA to support (1) enhanced standardization and transparency of corporate climate action commitments and plans to reduce greenhouse gas emissions; (2) enhanced transparency regarding progress toward meeting such commitments and implementing such plans; and (3) progress toward meeting such commitments and implementing such plans. (Sec. 60011) This section rescinds unobligated funding for the EPA program that supports the development, enhanced standardization and transparency, and reporting criteria for environmental product declarations for construction materials and products. The declarations must include measurements of the greenhouse gases associated with all the relevant stages of production, use, and disposal of the construction materials and products. (Sec. 60012) This section rescinds unobligated funding for the methane emissions reduction program under which the EPA provides financial incentives to encourage the reporting of greenhouse gases, the monitoring of methane, and the reduction of methane emissions from petroleum and natural gas systems. The section also postpones to calendar year 2034 the EPA’s imposition and collection of a charge on methane emissions that exceed certain thresholds. (Sec. 60013) This section rescinds unobligated funding for the EPA program that awards grants to states, air pollution control agencies, municipalities, and Indian tribes for developing and implementing plans to reduce greenhouse gas air pollution. (Sec. 60014) This section rescinds unobligated funding for the EPA’s provision of efficient, accurate, and timely reviews, including developing efficient, accurate, and timely reviews for permitting and approval processes through the hiring and training of personnel; developing programmatic documents; procuring technical or scientific services for reviews; developing environmental data or information systems; engaging stakeholders; purchasing new equipment for environmental analysis; and developing geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement. (Sec. 60015) This section rescinds unobligated funds for a program under which the EPA identifies and labels construction materials and products that have substantially lower levels of greenhouse gas emissions associated with all the relevant stages of production, use, and disposal of the materials and products. (Sec. 60016) This section rescinds unobligated funding for environmental and climate justice block grants that benefit disadvantaged communities. (Sec. 60017) This section rescinds unobligated funding for purposes of developing and implementing recovery plans under the Endangered Species Act. (Sec. 60018) This section rescinds unobligated funding for the Council on Environmental Quality, including funding for (1) collecting data related to environmental and climate issues, (2) tracking disproportionate burdens and cumulative impacts, and (3) supporting efforts to ensure that any mapping or screening tool is accessible to community-based organizations and community members. (Sec. 60019) This section rescinds the unobligated balances for the Neighborhood Access and Equity Grant Program of the Federal Highway Administration. (Sec. 60020) This section rescinds the unobligated funding provided to the Federal Buildings Fund for the conversion of General Services Administration (GSA) facilities to high-performance green buildings. (Sec. 60021) This section rescinds the unobligated funding provided to the Federal Buildings Fund for acquiring and installing low-carbon materials and products in the construction of federal buildings. (Sec. 60022) This section rescinds the unobligated funding for the emerging and sustainable technology program of the GSA. (Sec. 60023) This section rescinds the unobligated funding for the Low Carbon Transportation Materials Grants Program of the Federal Highway Administration (FHWA). (Sec. 60024) This section rescinds the unobligated funding for the Environmental Review Implementation Funds of the FHWA. (Sec. 60025) This section provides specified funds for the John F. Kennedy Center for the Performing Arts in Washington, DC, for FY2025, to remain available until September 30, 2029. This funding is for the capital repair, restoration, the maintenance backlog, and security structures of the building and site. (Sec. 60026) This section modifies the environmental review process under the National Environmental Policy Act of 1969 (NEPA), including by allowing a project subject to NEPA review to opt to pay a fee for the preparation and completion of an environmental assessment or environmental impact statement. TITLE VII--FINANCE Subtitle A--Tax Chapter 1--Providing Permanent Tax Relief for Middle-Class Families and Workers This chapter makes permanent multiple individual federal tax provisions enacted in 2017 by the Tax Cuts and Jobs Act. Below are some examples of provisions in this chapter. (Sec. 70101) This section makes permanent the individual tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%. (Sec. 70102) This section permanently increases the base standard deduction amount to $15,750 for single filers, $23,625 for individuals who file as head of the household, and $31,500 for married individuals filing jointly (adjusted annually for inflation). (Sec. 70103) This section permanently repeals the personal exemption tax deduction for most taxpayers and establishes a temporary (for 2025-2028) personal exemption tax deduction of up to $6,000 for individuals who are 65 years or older (subject to income limitations and identification requirements). (Sec. 70104) This section increases the maximum amount of the child tax credit to $2,200 per qualifying child (beginning in 2025) and provides that such amount is to be annually adjusted for inflation beginning in 2026. This section also makes permanent the phaseout threshold of $200,000 (or $400,000 for joint filers), $500 nonrefundable child tax credit for each dependent (who is not a qualifying child), and refundable portion of the child tax credit for taxpayers who meet certain requirements. Further, this section extends the child tax credit identification requirements applicable to qualifying children and expands such identification requirements to include the taxpayer and taxpayer’s spouse (if filing jointly). Beginning in 2025, under this section, a taxpayer must provide a work-eligible Social Security number for themselves, their spouse (if filing jointly), and for each qualifying child. (Sec. 70105) This section makes permanent the qualified business income (QBI) tax deduction, expands the phase-in range of the limitations on the QBI tax deduction to $75,000 for non-joint returns and $150,000 for joint filers (from $50,000 for non-joint returns and $100,000 for joint filers), and establishes a minimum QBI tax deduction of $400 for certain taxpayers. (Sec. 70106) This section increases the base estate tax, gift tax, and generation-skipping transfer tax exemption amount after 2025 to $15 million (from $5 million), adjusted for inflation. (Sec. 70107) This section makes permanent the increased alternative minimum tax exemption amounts and reduces the alternative minimum taxable income threshold amount to $500,000 ($1 million for joint filers) at which the exemption amounts begin to phase out (adjusted annually for inflation beginning in 2026). (For 2025, the alternative minimum taxable income threshold amounts are $626,350 [$1,252,700 for joint filers], as adjusted for inflation.) Further, this section increases the percentage rate to 50% (from 25%) at which the alternative minimum tax exemption amount is phased out for individuals whose taxable income exceeds such threshold amount. (Sec. 70108) This section makes permanent the limit on the itemized tax deduction for home mortgage interest. Under this section, taxpayers who itemize their tax deductions may deduct interest paid on the first $750,000 (or $375,000 for married individuals filing separately) of mortgage debt. (Taxpayers who itemize their tax deductions may deduct interest paid on the first $1 million [or $500,000 for married individuals filing separately] of mortgage debt incurred prior to December 15, 2017.) This section also allows certain mortgage insurance premiums to be included in the itemized tax deduction for home mortgage interest. (Sec. 70109) This section makes permanent a provision that limits the itemized tax deduction for unreimbursed personal casualty losses to such losses associated with a federally declared disaster and expands the tax deduction to include certain state- declared disasters. (Sec. 70110) This section permanently eliminates the itemized tax deduction for miscellaneous expenses except for unreimbursed expenses for books, supplies, and certain other expenses incurred by an individual who is (for at least 900 hours during the school year) a K-12 teacher, instructor, counselor, principal, school aide, interscholastic sports administrator, or coach. (Sec. 70111) This section replaces the overall limitation on itemized tax deductions applicable for 2025 and after (commonly known as the Pease limitation) with a modified limitation on itemized tax deductions. (Sec. 70120) This section temporarily increases the limit on the federal tax deduction for state and local taxes (commonly known as the SALT deduction cap) and phases out the tax deduction for individuals with a modified adjusted gross income exceeding a certain threshold amount. The SALT deduction cap increases in 2025 to $40,000 from $10,000 (or to $20,000 from $5,000 for married individuals filing separately). The SALT deduction cap increases in 2026 to $40,400 ( $20,200 for married individuals filing separately) and, then, by 1% each year after 2026, through 2029. In 2030, under this section, the SALT deduction cap reverts to $10,000 (or $5,000 for married individuals filing separately). Further, under this section, the amount of state and local taxes allowed as a federal tax deduction is reduced (but not below $10,000 or $5,000 for married individuals filing separately) by 30% of the amount that an individual’s modified adjusted gross income exceeds the threshold amount. The threshold amount in 2025 is $500,000 ( $250,000 for married individuals filing separately). The threshold amount increases in 2026 to $505,000 ($252,500 for married individuals filing separately) and, then, increases by 1% each year after 2026, through 2029. Chapter 2--Delivering on Presidential Priorities to Provide New Middle-Class Tax Relief This chapter establishes new tax deductions for qualified tips, qualified overtime, and some interest paid on a passenger vehicle loan. This chapter also establishes a new type of tax-advantaged account, called a Trump account. Below is a summary of the provisions in this chapter. (Sec. 70201) This section establishes a new above-the-line tax deduction, through 2028, of up to $25,000 for qualified tip income, which begins to phase out for individuals whose modified adjusted gross income exceeds $150,000 ($300,000 for joint filers). (Above-the-line deductions are subtracted from gross income to calculate adjusted gross income.) To be eligible for the tax deduction for qualified tip income, individuals must provide a work-eligible Social Security number for themselves and, if married, must file a joint federal tax return. (Sec. 70202) This section establishes a new above-the-line tax deduction, through 2028, of up to $12,500 ($25,000 for joint filers) for qualified overtime compensation, which begins to phase out for individuals whose modified adjusted gross income exceeds $150,000 ($300,000 for joint filers). To be eligible for the tax deduction for qualified tip income, individuals must provide a work-eligible Social Security number for themselves and, if married, must file a joint federal tax return. (Sec. 70203) This section establishes a new tax deduction of up to $10,000 for interest paid on indebtedness incurred in 2025 through 2028 to buy a passenger vehicle (for personal use and subject to certain requirements). The tax deduction phases out for taxpayers with modified adjusted gross income that exceeds $100,000 (or $200,000 for joint filers). (Sec. 70204) This section establishes a new type of tax-advantaged account, called a Trump account, which is an individual retirement account (IRA) (but not a Roth IRA) for individuals under 18 years old. Up to $5,000 (adjusted for inflation) may be contributed to a Trump account in each year before the account beneficiary reaches the age of 18 years old. (Certain rollovers and qualified general contributions do not count towards the annual contribution limit.) Distributions from a Trump account may be made once the account beneficiary reaches the age of 18 years old. (Some exceptions apply.) This section also authorizes a one-time federal government deposit of $1,000 into a Trump account for individuals born after December 31, 2024 and before January 1, 2029 (subject to certain other requirements). Chapter 3--Establishing Certainty and Competitiveness for American Job Creators Subchapter A--Permanent U.S. Business Tax Reforms and Boosting Domestic Investment This subchapter makes a number of changes to business-related federal tax provisions. Below are some examples of provisions in this subchapter. (Sec. 70301) This section permanently extends 100% bonus depreciation for property acquired and placed into service (and for certain plants planted or grafted) on or after January 19, 2025. (Sec. 70302) This section allows taxpayers to deduct domestic research and experimental expenses in the year such expenses are incurred (rather than requiring taxpayers to capitalize and amortize such expenses over 5 years or, if elected, over 10 years). However, under this section, taxpayers must continue to capitalize and amortize over a 15-year period foreign research and experimental expenses. Under this section, taxpayers may elect to capitalize and amortize over at least 60 months domestic research and experimental expenses. (Some exclusions apply.) Further, under this section (1) small business taxpayers (with average annual gross receipts of $31 million or less) may claim a tax deduction for domestic research and experimental expenses retroactively to tax years beginning after December 31, 2021, and (2) taxpayers may elect to accelerate amortization attributable to domestic research and experimental expenditures paid or incurred after December 31, 2021 and before January 1, 2025. (Sec. 70303) This section reinstates the exclusion of the tax deduction for depreciation, amortization, or depletion from the calculation of adjusted taxable income for purposes of the limitation on the tax deduction for interest expenses for tax years beginning after December 31, 2024. This section also expands the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses to include interest on floor plan financing of any camper or trailer designed to (1) provide temporary living quarters for recreational, camping, or seasonal use; and (2) be towed by, or affixed to, a motor vehicle. (Sec. 70306) This section increases to $2.5 million (from $1.25 million in 2025 and adjusted annually for inflation) the maximum amount that may be deducted (expensed) for certain depreciable business assets. This section also increases to $4 million (from $3.13 million in 2025 and adjusted annually for inflation) the dollar amount at which the tax deduction begins to phase out. Both amounts continue to be annually adjusted for inflation. (Sec. 70307) This section provides for an elective 100% depreciation allowance for nonresidential real property that is placed into service before January 1, 2031, and that meets certain other requirements. (Some limitations apply.) (Sec. 70308) This section increases the advance manufacturing tax credit to 35% (from 25%) for property placed into service after December 31, 2025. Subchapter B--Permanent America-First International Tax Reforms Part I--Foreign Tax Credit This part makes multiple changes to the foreign tax credit. Below is an example from one provision in this part. (Sec. 70311) This section limits the tax deductions a domestic corporate shareholder may allocate to income in the global intangible taxable income (GILTI) category for purposes of determining limit on the foreign tax credit to (1) the tax deduction for 40% of the GILTI amount included by such corporation in gross income and amounts treated as dividends attributable to such amounts and (2) any other deduction directly allocable to such income. Part II--Foreign-Derived Deduction Eligible Income and Net CFC Tested Income This part makes multiple changes to the tax deduction allowed to a domestic corporation for foreign-derived intangible income and GILTI. Below is a summary of the provisions in the part. (Sec. 70321) This section increases the tax deduction allowed to a domestic corporation for foreign-derived intangible income and GILTI to the sum of (1) 33.34% such corporation’s foreign-derived intangible income, and (2) 40% of such corporation’s GILTI and amounts treated as dividends attributable to such amounts. Under current law, a domestic corporation is allowed a tax deduction equal to the sum of (1) 37.5% (or 21.875% for tax years beginning in 2026) of such corporation’s foreign-derived intangible income, and (2) 50% (or 37.5% for tax years beginning in 2026) of such corporation’s GILTI and amounts treated as dividends attributable to such amounts. (Some limitations apply.) (Sec. 70322) This section excludes from deduction-eligible income for purposes of calculating foreign-derived intangible income (and the tax deduction for such income) income or gain from the sale or other disposition (including the deemed sale or other disposition) occurring after June 16, 2025, of (1) property of a type that gives rise to rents or royalties, and (2) any other property that is subject to depreciation, amortization, or depletion by the seller of such property. Further, under this section, deduction-eligible income must be reduced by expenses and deductions directly related to such income. (Sec. 70323) This section eliminates the use of a domestic corporation’s deemed tangible income return in determining foreign-derived intangible income and such corporation’s net deemed tangible income return in determining GILTI. As a result, under this section, the term foreign-derived intangible income is renamed foreign-derived deduction eligible income and the term GILTI is renamed net CFC tested income. (In this context, CFC refers to controlled foreign corporation.) Part III--Base Erosion Minimum Tax This part makes changes to the base erosion and anti-abuse tax (BEAT). Below is a summary of the provision in this part. (Sec. 70331) This section decreases the BEAT rate to 10.5% (from 12.5%) for tax years beginning after 2025. (Under current law, the BEAT rate is 10% for 2025 and 12.5% for tax years after 2025.) Part IV--Business Interest Limitation This part makes changes to the calculation of the limitation on the tax deduction of business interest expenses. (Under current law, the tax deduction for business interest expenses is limited to the sum of (1) business interest income for the tax year in which the tax deduction is being claimed, (2) 30% of the taxpayer’s adjusted taxable income, and (3) the taxpayer’s floor plan financing interest.) Below is a summary of the provisions in this part. (Sec. 70341) This section provides that limitation on tax deduction of business interest is calculated before capitalizable interest is calculated. (Some exceptions apply.) (Sec. 70342) This section excludes subpart F income and GILTI from adjusted taxable income for purposes of calculating limitation on tax deduction of business interest. Part V--Other International Tax Reforms This part makes permanent and modifies multiple federal tax provisions that impact foreign corporations. Below are some examples of the provisions in this part. (Sec. 70351) This section permanently extends of the CFC look-through rule. (Under the CFC look-through rule, certain interest expenses, dividends, rents, and royalties received by one CFC from a related CFC are not treated as foreign personal holding company income [for purposes of calculating subpart F income] if certain other requirements are met.) (Sec. 70352) This section requires specified foreign corporation (generally a CFC or any foreign corporation with respect to which one or more domestic corporations is a U.S. shareholder) to use the taxable year of their majority U.S. shareholder. (Under current law, a specified foreign corporation may elect a tax year beginning one month earlier than the majority U.S. shareholder.) Chapter 4--Investing in American Families, Communities, and Small Businesses Subchapter A--Permanent Investments in Families and Children This subchapter makes multiple changes to federal tax provisions related to children and dependents. Below are some examples of the provisions in this subchapter. (Sec. 70401) This section increases the tax credit for employers that provide child care to their employees. Under this section, the portion of the tax credit for qualified child care expenses increases to 40% (from 25%) or to 50% for eligible small businesses. This section also increases the maximum amount of the tax credit to $500,000 (from $150,000) or $600,000 for eligible small businesses (adjusted for inflation). (Sec. 70404) This section increases to $7,500 or $3,750 for a married individual filing separately (from $5,000 or $2,500 for a married person filing separately) the exclusion from gross income for amounts paid or incurred by an employer to an employee as part of a dependent care assistance program. (Sec. 70405) This section increases the non-refundable tax credit for expenses paid by an individual for the care of a child or dependent that enable such individual to be gainfully employed. Subchapter B--Permanent Investments in Students and Reforms to Tax-Exempt Institutions This subchapter makes multiple changes to federal tax provisions related to education and certain educational institutions. Below are some examples of the provisions in this subchapter. (Sec. 70411) This section establishes a nonrefundable tax credit of up to $1,700 for cash contributions made by an individual who is a citizen or resident of the United States to a tax-exempt organization that provides scholarships for qualified elementary and secondary school expenses to eligible students (scholarship granting organization), subject to limitations. (Sec. 70413) This section expands the expenses eligible for tax-free withdrawals from qualified tuition programs (529 plans) to include certain additional expenses related to elementary, secondary, or homeschool education. This section also increases to $20,000 (from $10,000) the limit on distributions from a 529 plan used in connection with enrollment or attendance at an elementary or secondary school. (Sec. 70414) This section expands the expenses eligible for tax-free withdrawals from 529 plans to include tuition, fees, books, supplies, equipment, and other expenses related to the enrollment or attendance in a recognized postsecondary credentialing program. (Sec. 70415) This section replaces the excise tax of 1.4% imposed on the net investment income of certain private university and college endowments with a new rate structure of 1.4%, 4%, or 8%, depending on several variables including the value of the endowment and the number of full-time students who meet certain other requirements. Subchapter C--Permanent Investments in Community Development This subchapter makes multiple changes to certain federal tax incentives related to investing in certain communities and tax deductions for charitable contributions. Below are examples from this subchapter. (Sec. 70423) This section permanently extends the New Markets Tax Credit (a tax credit for certain investments in eligible, low-income communities). (Sec. 70424) This section makes permanent and increases to $1,000 for single filers (from $300) or $2,000 for joint filers (from $600 for joint filers) the tax deduction for charitable contributions made by individuals who do not itemize their federal income tax deductions. Subchapter D--Permanent Investments in Small Business and Rural America This subchapter modifies certain reporting requirements related to third-party settlement organizations and makes changes to several other federal tax provisions. Below are some examples of the provisions in this subchapter. (Sec. 70432) This section modifies the reporting requirements applicable to third-party settlement organizations (e.g., certain online platforms, apps, and card payment processors). Under this section, such organizations are required to issue Internal Revenue Service (IRS) Form 1099-K to payees who receive more than $20,000 from more than 200 separate transactions. (This section reverses a provision in the American Rescue Plan Act of 2021 that lowered the reporting threshold to $600 with no minimum on the number of transactions, the implementation of which was delayed and phased in by the IRS. For 2025, under current law, such organizations are required to issue IRS Form 1099-K to payees who receive more than $2,500, regardless of the number of transactions.) (Sec. 70434) This section expands the federal tax deduction for certain film, television, and theatrical production costs to allow a deduction of up to $150,000 of qualified sound recording production costs in the tax year such costs are incurred. A qualified sound recording production is a sound recording that is produced and recorded in the United States. (Under current law, up to $20 million of film, television, and theatrical production costs incurred before 2026 may be deducted.) The section also extends bonus depreciation to qualified sound recording production costs. (Under current law, taxpayers may claim a bonus depreciation allowance of between 20% to 100% of the cost of qualified property depending on when such property is placed into service. Section 70301 of the bill extends 100% bonus depreciation through 2029 [or 2030 for some types of property].) (Sec. 70436) This section eliminates the $200 excise tax imposed on the transfer of certain firearms other than machine guns and destructive devices. As a result, the $200 excise tax is not applicable to silencers, short-barreled rifles and short-barreled shotguns. Chapter 5--Ending Green New Deal Spending, Promoting America-First Energy and Other Reforms Subchapter A--Termination of Green New Deal Subsidies This subchapter terminates multiple energy-related federal tax credits. Below are some examples of the provisions in this subchapter. (Sec. 70501) This section terminates the previously-owned clean vehicle tax credit. (Under current law, taxpayers may claim a tax credit of up to $4,000 for the purchase of a qualified previously-owned clean vehicle before 2033.) (Sec. 70502) This section terminates the clean vehicle tax credit. (Under current law, taxpayers may claim a tax credit of up to $7,500 for the purchase of a qualified new clean vehicle before 2033.) (Sec. 70503) This section terminates the qualified commercial clean vehicle tax credit. (Under current law, businesses may claim a tax credit of up to $40,000 for the purchase of a commercial clean vehicle before 2033.) (Sec. 70504) This section terminates the alternative fuel refueling property tax credit. (Under current law, tax credit of up to $1,000 for individuals or up to $100,000 for businesses is allowed for the installation of property before 2033 that is used to store or dispense clean-burning fuel or to recharge electric vehicles.) (Sec. 70505) This section terminates the energy efficient home improvement tax credit. (Under current law, taxpayers may claim a tax credit of up to $3,200, for certain energy-efficient property purchased and installed into a primary residence before 2033.) (Sec. 70506) This section terminates the residential clean energy tax credit. (Under current law, taxpayers may claim a tax credit for certain renewable energy equipment for a principal residence before 2034.) (Sec. 70507) This section terminates the energy efficient commercial buildings tax deduction. (Under current law, taxpayers may claim a deduction for certain energy efficient commercial property placed into service after 2005.) (Sec. 70508) This section terminates the new energy efficient home tax credit. (Under current law, contractors may claim a business tax credit for constructing an energy-efficient home that is acquired by a person for use as a residence before 2033.) (Sec. 70511) This section terminates the clean hydrogen production tax credit. (Under current law, a tax credit is available for the production of clean hydrogen by a qualifying facility for which construction begins before 2033.) Subchapter B--Enhancement of America-First Energy Policy This subchapter modifies multiple energy-related federal tax provisions and makes changes to the calculation of the corporate alternative minimum tax. Below are some examples of the provisions in this subchapter. (Sec. 70521) This section extends the clean fuel production tax credit through 2029 and requires that clean fuels produced from feedstock use feedstock sourced from the Unites States, Canada, or Mexico; excludes emissions attributable to an indirect land use change from the calculation of lifecycle emissions estimates (used in part of the calculation of the clean fuel production tax credit); and requires the Department of the Treasury to provide distinct emission rates for specific feedstocks used to produce clean fuels, including dairy manure, swine manure, and poultry manure. This section also disallows the clean fuel production tax credit for certain foreign entities and foreign-influenced entities (e.g., taxpayers that make certain types of payments to certain foreign entities). (Sec. 70523) This section allows corporations to reduce their adjusted financial statement income (for purposes of calculating the corporate alternative minimum tax) to account for certain intangible costs related to oil, gas, or geothermal well drilling and development. (Sec. 70525) This section provides for a refund of previously imposed and paid excise taxes upon the transfer of nontaxable, indelibly dyed diesel fuel or kerosene used for agricultural, off-road, or other nontaxable purposes. Subchapter C--Other Reforms This subchapter eliminates the de minimis exemption for certain imports into the United States and establishes a new civil penalty for using such exemption in a manner that violates U.S. customs laws. Below is a summary of the provision in this subchapter. (Sec. 70531) This section eliminates the exemption from certain duties, fees, and processes for imports of up to $800 (commonly referred to as the de minimis exemption), effective July 1, 2027. Further, this section establishes a civil penalty for entering, introducing, facilitating, or attempting to introduce an article into the United States using the de minimis exemption in a manner that violates U.S. customs laws. The amount of the civil penalty is up to $5,000 for the first violation and up to $10,000 for subsequent violations. Chapter 6--Enhancing Deduction and Income Tax Credit Guardrails, and Other Reforms This chapter modifies various federal tax deductions and credits. Below are examples of the provisions in this subchapter. (Sec. 70604) This section establishes a 1% excise tax on transfers of payments from one country to another (also known as remittance transfers). (Some exceptions apply). (Sec. 70606) This section requires a Social Security number to be eligible for the American Opportunity and Lifetime Learning tax credits. (Sec. 70607) This section directs the Internal Revenue Service to deliver a report to Congress on the cost of enhancing and establishing public-private partnerships that provide for free tax filing for up to 70% of all taxpayers (calculated by adjusted gross income), the cost to replace any direct e-file programs run by the Internal Revenue Service, taxpayer opinions and preferences regarding a taxpayer-funded, government-run tax filing service or a free tax filing service provided by the private sector, assessment of the feasibility of providing simple and consistent options across participating tax filing providers, and the cost of developing and running a free direct e-file tax return system.. Subtitle B--Health Chapter 1--Medicaid Subchapter A--Reducing Fraud and Improving Enrollment Processes (Sec. 71103) This section requires the Centers for Medicare & Medicaid Services (CMS) to establish a centralized system for states to check whether enrollees are simultaneously enrolled in Medicaid or the Children’s Health Insurance Program (CHIP) in multiple states. Beginning no later than 2027, states must regularly obtain the addresses of Medicaid and CHIP enrollees from specified authorized sources. Beginning no later than FY2030, states must report on at least a monthly basis the Social Security numbers of enrollees to the CMS' newly established system. The CMS must notify states on at least a monthly basis of individuals who are enrolled in multiple states so that states may take appropriate action. The section provides funds for FY2026 and FY2029 for the CMS to establish and maintain the new system, respectively. (Sec. 71104) This section requires state Medicaid programs to check, beginning in 2028, the Social Security Administration's Death Master File on at least a quarterly basis to determine whether Medicaid enrollees are deceased. (Sec. 71105) This section provides statutory authority for the requirement that state Medicaid programs check, as part of the provider enrollment and reenrollment process, whether providers are deceased through the Social Security Administration's Death Master File. Beginning in 2028, the section requires states to continue to check this database on at least a quarterly basis after providers are enrolled. (Sec. 71107) This section requires state Medicaid programs to redetermine every six months, beginning with the first quarter after December 31, 2026, the eligibility of individuals who are enrolled in Medicaid as part of the Medicaid expansion population under the Patient Protection and Affordable Care Act. (The act allows states to extend Medicaid coverage to all adults under the age of 65 with incomes of up to 138% of the federal poverty level, including able-bodied adults without dependent children.) The section provides funds for FY2026 for the CMS to implement these provisions. (Sec. 71109) This section generally restricts, beginning in FY2027, federal payment for Medicaid and CHIP to services for individuals who are U.S. residents and are either U.S. citizens, lawful permanent residents, Cuban-Haitian entrants, or Compact of Free Association migrants lawfully residing in the United States. The section provides funds for FY2026 for the CMS to implement these provisions. (Sec. 71110) This section limits, beginning in FY2027, the Medicaid federal matching rate for emergency services provided to individuals who are not lawfully residing in the United States to the same matching rate as would otherwise apply for such services (rather than the enhanced federal matching rate for states that have expanded Medicaid). The section provides funds for FY2026 for the CMS to implement these provisions. Subchapter B--Preventing Wasteful Spending (Sec. 71112) This section specifies that, beginning with the first quarter after December 31, 2026, Medicaid coverage may begin retroactively (1) for individuals in the Medicaid expansion population, one month prior to the application filing date; and (2) for all other individuals, two months prior to the application filing date. Additionally, CHIP coverage may retroactively begin two months prior to the application filing date. (Currently, coverage may begin three months prior to the application filing date.) The section provides funds for FY2026 for the CMS to implement these provisions. (Sec. 71113) This section prohibits federal Medicaid payment for one year to nonprofit health care providers that serve predominantly low-income, medically underserved individuals (i.e., essential community providers) if the provider (1) primarily furnishes family planning services, reproductive health, and related care; (2) offers abortions in cases other than that of rape, incest, or life-threatening conditions for the woman; and (3) in FY2023, received federal and state Medicaid payments totaling more than $800,000. The section provides funds for FY2026 for the CMS to implement these provisions. Subchapter C--Stopping Abusive Financing Practices (Sec. 71114) This section requires states that had not chosen to expand Medicaid pursuant to the Patient Protection and Affordable Care Act prior to March 11, 2021, to do so by January 1, 2026, in order to receive the corresponding enhanced federal matching rate. (Sec. 71115) This section generally limits Medicaid provider taxes beginning in FY2027. Under current law, states may impose a provider tax of up to 6% of net patient service revenues to potentially receive additional federal matching funds. The section precludes states that have not expanded Medicaid from increasing the rate of a provider tax beyond that currently in effect in order to qualify for federal matching funds. For states that have expanded Medicaid, a provider tax may not exceed the current rate or a specified rate, whichever is lower; the maximum rate gradually decreases from FY2028-FY2032, with a maximum rate of 3.5% beginning in FY2032 (these limits do not apply to nursing and intermediate care facilities, which are instead limited to current rates). The section additionally precludes states from imposing a new provider tax if there is not already one in effect. The section provides funds for FY2026 for the CMS to implement these provisions. (Sec. 71116) This section provides funds through FY2033 for the CMS to revise regulations so as to limit state-directed payments for inpatient hospital services, outpatient hospital services, nursing facility services, or qualified practitioner services at an academic medical center under Medicaid managed care contracts to the payment rate for services under Medicare, rather than the average commercial rate. For states that cover the Medicaid expansion population, payment is limited to 100% of the Medicare rate; for other states, payment is limited to 110% of the Medicare rate. Subchapter D--Increasing Personal Accountability (Sec. 71119) This section requires, beginning not later than the first quarter after December 31, 2026 (or earlier, at the option of the state), individuals who are eligible for Medicaid as part of the Medicaid expansion population to engage in community service, work, or other activities in order to qualify for Medicaid. Specifically, the section requires these individuals to, on a monthly basis, (1) work at least 80 hours, (2) complete at least 80 hours of community service, (3) participate in a work program for at least 80 hours, (4) be enrolled at least half-time in an educational program, or (5) engage in any combination thereof for a total of at least 80 hours. Individuals may also qualify if they have a monthly income (or, for seasonal workers, an average monthly income over six months) that is at least as much as the equivalent of minimum wage multiplied by 80 hours. Individuals who are applying for Medicaid must demonstrate compliance with these requirements for one to three months (as determined by the state) consecutively and immediately prior to filing an application; individuals who are already enrolled in Medicaid must demonstrate compliance for one month or more (as determined by the state), whether or not consecutive, during the period between the individual’s last eligibility determination and the next scheduled eligibility determination. States must verify an individual’s compliance upon a determination or redetermination of eligibility but may also choose to verify compliance more frequently. States may not waive the new requirements. However, states may choose to provide an exception for individuals experiencing short-term hardships (e.g., hospitalization). The section excludes certain individuals from these requirements, including those with serious medical conditions or dependent children aged 13 or younger. Upon request, the CMS may exempt a state from fully implementing these requirements until December 31, 2028. States requesting an exemption must demonstrate good faith efforts to comply with the requirements and provide a detailed timeline for implementation. The section provides funds for FY2026 for states and the CMS to implement these requirements. (Sec. 71120) This section requires, beginning in FY2029, states to institute cost-sharing requirements for individuals who are eligible for Medicaid as part of the Medicaid expansion population and whose family income exceeds the federal poverty line. Cost sharing may not exceed $35 for an item or service; total cost sharing for all individuals in a family may not exceed 5% of the family’s income. The requirements do not apply to (1) services for which cost sharing is already prohibited (e.g., emergency services); (2) primary care, mental health, or substance use disorder services; or (3) services provided by federally qualified health centers, certified community behavioral health clinics, or rural health clinics. States may allow providers to condition the provision of services upon the payment of any required cost sharing. The section provides funds for FY2026 for the CMS to implement these provisions. Subchapter E--Expanding Access to Care (Sec. 71121) This section authorizes additional home and community-based services (HCBS) waivers (also known as Section 1915(c) waivers) for state Medicaid programs beginning on July 1, 2028. States may seek waivers to provide HCBS to individuals without the need for certain determinations as to whether an individual requires hospital or institutional care (as is required for current waivers). States must establish other needs-based criteria for such services. The section provides funds for FY2026 for the CMS to implement these provisions. It also provides funds for FY2027 to support state HCBS programs. Chapter 2--Medicare Subchapter A--Strengthening Eligibility Requirements (Sec. 71201) This section generally restricts Medicare eligibility to U.S. citizens, lawful permanent residents, Cuban-Haitian entrants, and Compact of Free Association migrants lawfully residing in the United States. The Social Security Administration must identify Medicare enrollees who do not meet these requirements and terminate their enrollment within 18 months of this section’s enactment. Subchapter B--Improving Services for Seniors (Sec. 71203) This section modifies certain provisions under the Medicare Drug Price Negotiation Program with respect to orphan drugs. The Medicare Drug Price Negotiation Program requires the CMS to negotiate the prices of certain prescription drugs under Medicare beginning in 2026. Among other requirements, drugs must have had market approval for at least 7 years (for drug products) or 11 years (for biologics) to qualify for negotiation. The program does not apply to orphan drugs that are approved to treat only one rare disease or condition. The section modifies these provisions so as to exclude any period in which a drug was an orphan drug from market approval calculations. It also excludes orphan drugs that are approved to treat more than one rare disease or condition from the program. The changes take effect in 2028. Chapter 3--Health Tax Subchapter A-- Improving Eligibility Criteria This subchapter modifies eligibility and verification requirements for the premium tax credit (which may be used to purchase health insurance on an exchange). Below is a summary of the provisions in this subchapter. (Sec. 71301) This section limits a lawfully-present alien’s eligibility for the premium tax credit to an alien who is lawfully admitted for permanent residence; an alien who has been granted the status of Cuban and Haitian entrant; or an individual who is lawfully residing in the United States in accordance with the Compacts of Free Association between the United States and Micronesia, the Marshall Islands, and Palau. (Sec. 71302) This section repeals the rule that allows certain lawfully-present aliens who have a household income of less than 100% of the federal poverty level and are ineligible for Medicaid (based on the individual’s alien status) to claim the premium tax credit. Subchapter B--Preventing Waste, Fraud, and Abuse This subchapter requires verification of certain information supplied by individuals for purposes of determining eligibility for the premium tax credit, limits use of the premium tax credit, and expands recapture of excess advance payments of the premium tax credit. Below is a summary of the provisions of this subchapter. (Sec. 71303) This section requires the verification of certain information for an individual to enroll in a health insurance plan through a health insurance exchange and to generally qualify for the premium tax credit. (Under current law, eligible individuals are allowed a premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges.) Specifically, under this section, the following information must be verified household income and family size, whether the individual is an eligible alien, any health coverage status or eligibility for coverage, place of residence, and any other information required by the Department of the Treasury. (Sec. 71304) This section provides that the premium tax credit is not allowed for any health insurance plan enrolled in through a health insurance exchange during a special enrollment period provided by such exchange (1) on the basis of the relationship between the individual’s expected household income to the federal poverty level and (2) not in connection with with the occurrence of an event or change in circumstances specified by the Department of Health and Human Services for such purposes. (Sec. 71305) This section eliminates the limit on the recapture of excess advance payments of the premium tax credit and, accordingly, allows the full amount of any such excess payments to be recaptured. (Under current law, individuals with incomes below 400% of the federal poverty level may be required to pay back only a portion of any excess advance payment of the premium tax credit.) Subchapter C--Enhancing Choice for Patients This subchapter expands health savings account (HSA) eligibility requirements. Below is a summary of the provisions in this subchapter. (Sec. 71306) This section allows individuals to establish and make tax-deductible contributions to a health savings account (HSA) if covered by a health insurance plan that provides telehealth and other remote care services without requiring a deductible but otherwise meets the requirements of a high-deductible health plan (HDHP). (Sec. 71307) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a bronze-level or catastrophic health insurance plan through a health insurance exchange. (Sec. 71308) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a direct primary care service arrangement with a fixed period fee that does not exceed $150 a month (or $300 a month if the arrangement covers more than one individual). The amounts are adjusted annually for inflation. (Some limitations apply.) Chapter 4--Protecting Rural Hospitals and Providers (Sec. 71401) This section provides funds through FY2030 for a program that supports the provision of health care in rural areas. Under the program, states may apply for financial allotments to improve the access and quality of care of services in rural areas, such as through enhanced technology, strategic partnerships, and workforce training. Subtitle C--Increase in Debt Limit (Sec. 72001) This section increases the statutory debt limit by $5 trillion. (The debt limit is the amount of money that the Department of the Treasury may borrow to fund federal operations.) Subtitle D--Unemployment (Sec. 73001) This section prohibits payments under federal unemployment programs to individuals whose wages are $1 million or more. Such programs must include a method for individuals to certify that their income does not exceed this limit. State agencies that administer such programs must verify income information, to the extent possible, and provide for the recovery of any overpayments. TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS This title makes various changes to higher education, particularly to the federal student loan system. Subtitle A--Exemption of Certain Assets (Sec. 80001) This section includes an exemption for certain family farms, small businesses, and commercial fishing businesses on the Free Application for Federal Student Aid (FAFSA) form. This exemption applies to the net worth of (1) a family farm on which the family resides, (2) a small business with not more than 100 full-time or full-time equivalent employees that is owned and controlled by the family, or (3) a commercial fishing business and related expenses (e.g., fishing vessels and permits) owned and controlled by the family. Subtitle B--Loan Limits This subtitle makes various changes to federal student loans. (Sec. 81001) This section terminates the ability of graduate or professional students to receive Direct PLUS Loans (i.e., Grad PLUS Loans) beginning on July 1, 2026. The section sets annual and aggregate borrowing limits for graduate and professional students. In particular, the section establishes the aggregate loan limit for Direct Unsubsidized Loans as $100,000 for a graduate student (in addition to the amount borrowed for undergraduate education) and $200,000 for a professional student (in addition to the amount borrowed for undergraduate education). The section also places certain restrictions on Parent PLUS Loans beginning on July 1, 2026. In particular, the section sets an annual loan limit of $20,000 that may be borrowed on behalf of a dependent student and a lifetime borrowing limit of $65,000 per dependent student. The section also establishes new annual and aggregate loan limits for borrowers beginning on July 1, 2026. For example, the section sets an overall aggregate lifetime borrowing limit of $257,500 for any single borrower across federal loan types (except for Federal Direct PLUS Loans and Parent PLUS Loans). The section provides an exception to the loan limits described in this section (of up to three academic years) for a student who is already enrolled in a program of study and received a loan for the program. The section allows institutions of higher education (IHEs) to set lower loan limits. Subtitle C--Loan Repayment This subtitle revises loan repayment options for federal student loans. (Sec. 82001) This section terminates all current student loan repayment plans for new loans disbursed on or after July 1, 2026. The Department of Education (ED) may only offer borrowers two options for repayment of federal student loans: a standard repayment plan (with the length of the repayment term determined by the total amount borrowed) and an income-based repayment plan (to be known as the Repayment Assistance Plan). The section includes a transition to income-based repayment plans. Beginning on July 1, 2028, a borrower with a loan that is in a repayment status in accordance with, or an administrative forbearance associated with, an income-contingent repayment plan (e.g., current borrowers on the Saving on a Valuable Education, or SAVE, plan) must begin repaying the loan under a new repayment plan. If a borrower does not select a plan, ED must enroll the borrower in either the Repayment Assistance Plan or the standard repayment plan. (Sec. 82002) This section eliminates economic hardship and unemployment deferments beginning on July 1, 2027. It also reduces the total period a borrower may be in forbearance. (Sec. 82003) This section allows borrowers to rehabilitate a defaulted loan twice (currently, only once). However, beginning on July 1, 2027, the borrower must pay a minimum payment amount of $10. (Sec. 82004) This section allows payments under the new Repayment Assistance Plan to count as qualifying payments for purposes of the Public Service Loan Forgiveness program. (Sec. 82005) This section provides funding to ED for administrative costs, including for the costs of student loan servicing. Subtitle D--Pell Grants This subtitle makes changes to Pell Grants. (Sec. 83001) This section requires foreign income that is exempt from taxation or foreign income for which an individual receives a foreign tax credit to be included in the adjusted gross income calculation for purposes of calculating eligibility for Pell Grants. Students with a student aid index that equals or exceeds twice the amount of the total maximum Pell Grant are ineligible for Pell Grants, regardless of their adjusted gross income. The section’s changes take effect beginning on July 1, 2026. (Sec. 83002) This section requires ED to award Workforce Pell Grants to students enrolled in eligible workforce programs. Eligible programs are those that provide at least 150 clock hours (but less than 600 clock hours) of instruction during a minimum of 8 weeks (but less than 15 weeks). The section’s changes take effect beginning on July 1, 2026. (Sec. 83003) This section increases funding for Pell Grants for FY2026. (Sec. 83004) This section makes a student ineligible for Pell Grants if the student receives grant aid from nonfederal sources (e.g., states, IHEs, or private sources) in an amount that equals or exceeds the student's cost of attendance. The section's changes take effect beginning on July 1, 2026. Subtitle E--Accountability (Sec. 84001) This section requires IHEs participating in federal student loan programs to meet cohort median earning requirements. Specifically, the section prohibits an IHE from using federal funds for student enrollment in low-earning outcome programs. Low-earning outcome programs are educational programs in which the graduating cohorts earn less as working adults compared to those with lesser degrees (e.g., a high school diploma instead of a bachelor's degree). If an educational program does not meet the cohort median earning requirements, the IHE must promptly notify each student enrolled in the program. ED must establish a process for an IHE with an educational program that has lost eligibility for federal funds to be able to apply to regain eligibility for such funds. IHEs must comply with these requirements beginning on July 1, 2026. Subtitle F--Regulatory Relief (Sec. 85001) This section delays until July 1, 2035, ED regulations pertaining to borrower defense to repayment. It restores those regulations that were in effect on July 1, 2020. (Sec. 85002) This section delays until July 1, 2035, ED regulations pertaining to closed school discharges. It restores those regulations that were in effect prior to changes made in November 2022. Subtitle G--Garden of Heroes (Sec. 86001) This section provides additional funding for FY2025 to the National Endowment for the Humanities (1) to establish and maintain a statuary park named the National Garden of American Heroes; (2) to procure statues for the National Garden of American Heroes; and (3) for events, celebrations, and activities related to the 250th anniversary of America’s founding. Subtitle H--Office of Refugee Resettlement (Sec. 87001) This section provides additional funding for FY2025 to the Office of Refugee Resettlement for specified activities, such as background checks and home studies of potential sponsors of unaccompanied children. TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS Subtitle A--Homeland Security Provisions This subtitle provides funding for border security. (Sec. 90001) This section provides funding to U.S. Customs and Border Protection (CBP) for construction, installation, or improvement to barriers; access roads; detection technology; and other work to prepare the ground at or near the U.S. border. (Sec. 90002) This section provides funding for CBP personnel, bonuses, facilities, and fleet vehicles. (Sec. 90003) This section provides funding to the U.S. Immigration and Customs Enforcement (ICE) for increased capacity in detention facilities for the purposes of detaining adults and families who are non-U.S. nationals (aliens under federal law). (Sec. 90004) This section provides funding for CBP inspection and surveillance equipment, screenings (including of unaccompanied children), rapid air and marine response capabilities, vetting, and activities to prevent drug trafficking. (Sec. 90005) This section provides funding to the Federal Emergency Management Agency (FEMA) (1) to assist state and local authorities to detect, identify, track, or monitor unmanned aircraft systems; (2) for security, planning, and other costs related to the 2026 FIFA World Cup; (3) for security, planning, and other costs related to the 2028 Olympics; and (4) for the Operation Stonegarden grant program. The section also establishes a fund in the Department of Homeland Security (DHS) to reimburse states and units of local government for costs associated with border security actions taken on or after January 20, 2021. Specifically, DHS shall provide grants for (1) barriers along the southern U.S. border, (2) the detection and interception of certain individuals and illicit drugs, and (3) the relocation of non-U.S. nationals (aliens under federal law) from small population centers to other domestic locations. (Sec. 90006) This section provides funding to FEMA to reimburse state and local law enforcement for extraordinary costs associated with protecting a residence of the President. (Sec. 90007) This section provides funding to DHS for reimbursement of costs incurred for activities in support of safeguarding U.S. borders. Subtitle B--Governmental Affairs Provisions This subtitle revises the Federal Employees Health Benefits (FEHB) Program. FEHB Protection Act of 2025 (Sec. 90101) This section requires the Office of Personnel Management (OPM) to issue regulations and implement a process to verify (1) the veracity of any qualifying life event through which an enrollee in the FEHB Program seeks to add a family member for coverage under the program; and (2) that, when an enrollee seeks to add a family member to the FEHB program, the individual added is a qualifying family member. The section also requires OPM to conduct a comprehensive audit regarding family members enrolled in the FEHB program. In conducting this audit, OPM must review marriage certificates, birth certificates, and other appropriate documents to determine eligibility. OPM must develop a process to disenroll or remove an individual who is not eligible to participate in the FEHB program. The section allows for some Employees Health Benefits Fund amounts to be available to OPM in FY2026 to carry out eligibility verification requirements and audit activities. (Sec. 90102) This section provides FY2026 funding for the Pandemic Response Accountability Committee to support oversight of the coronavirus response and of funds provided pertaining to the coronavirus pandemic. The section extends the committee to September 30, 2034 (currently, the committee terminates on September 30, 2025). (Sec. 90103) This section provides FY2025 funding to the Office of Management and Budget for purposes of finding budget and accounting efficiencies in the executive branch. TITLE X--COMMITTEE ON THE JUDICIARY Subtitle A--Immigration and Law Enforcement Matters Part I--Immigration Fees This part establishes additional or increased fees for various immigration programs and procedures. These fees include those required for applications for asylum, employment authorizations for asylees, parolees, and individuals granted temporary protected status, individuals paroled into the United States, individuals applying for special immigrant juvenile status, individuals applying for Temporary Protected Status, and individuals issued a nonimmigrant visa. (Sec. 100013) This section establishes various fees for specified judicial and adjudicative filings, including filing in immigration court an application for waiver of grounds of inadmissibility, filing an appeal of a decision of an immigration judge or a DHS officer, and a practitioner filing an appeal in a disciplinary case. Part II--Immigration and Law Enforcement Funding This part provides funding for various immigration agencies and offices for purposes of immigration enforcement, removal, maintenance of facilities, and program operations. This includes the Department of Homeland Security, the Executive Office for Immigration Review, U.S. Immigration and Customs Enforcement, U.S. Customs and Border Protection, the Department of Justice, and the performance of immigration officer functions by state officers and employees. (Sec. 100056) This section provides funding for the Bureau of Prisons for salaries, benefits, and facilities. (Sec. 100057) This section provides funding for the U.S. Secret Service for personnel, bonuses, training facilities, programming, and technology. Subtitle B--Judiciary Matters (Sec. 100101) This section provides funding for the Administrative Office of the U.S. Courts for the purpose of analysis and reporting regarding the state of the dockets of the courts, including metrics regarding judicial orders for non-party relief against the federal government. (Sec. 100102) This section provides funding for the Federal Judicial Center for the purpose of carrying out continuing education and training for personnel of the judicial branch, including training on non-party relief against the federal government. Subtitle C--Radiation Exposure Compensation Matters This subtitle reestablishes and expands a program to compensate individuals who were exposed to radiation during certain nuclear testing or uranium mining and who subsequently developed medical conditions, particularly cancer. This program compensated individuals who were present in a designated geographic area during a period of nuclear testing and certain individuals employed in uranium mining. The subtitle expands the designated areas to include Idaho and New Mexico and additional areas in Nevada and Utah; makes more individuals who worked in uranium mining eligible for the program; increases the amount of compensation awarded to new eligible claimants; and extends through 2028 the fund that supports this program and extends through 2027 the statute of limitations for filing claims (the program expired in 2024). The subtitle also expands this program to compensate individuals located in specified areas of Missouri, Tennessee, Alaska, or Kentucky associated with waste from the Manhattan Project and who subsequently developed specified types of cancer.

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2025 budget reconciliation timeline

• July 4, 2025

  President Donald Trump (R) signed the One Big Beautiful Bill Act into law, completing the budget reconciliation process.

• July 3, 2025

  The US House of Representatives voted 218 - 214 to pass the Senate-amended version of the One Big Beautiful Bill Act.

• July 1, 2025

  After the Senate's vote-a-rama on June 30, the chamber voted 51-50 to pass the One Big Beautiful Bill Act.

• June 19 - 29, 2025

  The Senate Parliamentarian advised that certain provisions were in violation of the Byrd Rule. A list of the provisions that she determined should be excluded or revised can be found here.

• June 11, 2025

  The US House of Representatives passed edits to the One Big Beautiful Bill Act through a rule resolution (H.Res.492). The edits passed 213-207.

• May 22, 2025

  The US House of Representatives passed the One Big Beautiful Bill Act with a vote of 215-214.

• May 18, 2025

  The House Budget Committee voted 17-16 to advance the One Big Beautiful Bill Act budget reconciliation bill. This bill consisted of all the House committee bills that were required by the reconciliation instructions in H.Con.Res.14.

• April 10, 2025

  The House voted 216-214 to adopt the Senate-amended version of budget resolution HCon.Res.14, completing the budget resolution process.

• April 5, 2025

  The Senate voted 51-48 to pass the amended version of the House budget resolution (H.Con.Res.14) after a vote-a-rama.

• February 25, 2025

  The House voted 217 to 215 to adopt their budget resolution.

• February 13, 2025

  The House released the text of a proposed budget resolution.

2025 budget reconciliation detailed timeline

See also: 2025 Final budget resolution committee instructions

President Donald Trump signs the One Big Beautiful Bill Act

On July 4, President Donald Trump (R) signed the One Big Beautiful Bill Act into law, completing the budget reconciliation process.

House adopts Senate version of the One Big Beautiful Bill Act

On July 3, the House voted 218 - 214 to adopt the Senate-amended version of the budget reconciliation bill. All House Democrats voted against the bill and all but two Republicans voted in favor. Reps. Thomas Massie (R) and Brian Fitzpatrick (R) voted against the legislation package.

Senate votes in favor of the One Big Beautiful Bill Act

On June 30, the Senate began a vote-a-rama on proposed amendments to the reconciliation bill. This began after at least ten days of rulings by the Senate Parliamentarian through the Byrd Bath process. On July 1, the Senate voted 51 - 50 to adopt the act. Vice President J.D. Vance (R) was the tie-breaking vote. All Democrats and three Republicans, Senators Rand Paul (R), Thom Tillis (R), and Susan Collins (R), voted against the bill. All other Republicans voted in favor.

Removal of bill title

The One Big Beautiful Bill Act's official title became An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14. on July 1 ahead of the Senate vote. Senate Minority Leader Chuck Schumer (D) invoked the Byrd Rule to remove the original bill title, the One Big Beautiful Bill Act, since giving the bill a title did not directly pertain to budgetary matters.

This last occurred in 2022, when Senate Republicans removed the bill title of the Inflation Reduction Act. Senate Democrats also removed the bill title of the Tax Cuts and Jobs Act in 2017.

Politico's Brian Faler wrote that, "Striking the name is a way for lawmakers to attack the other side’s messaging on what is typically their top legislative priority." Faler also wrote, "Deleting the title doesn’t have a lot of practical effect because lawmakers, the news media and others often still use the bill’s name, even if it’s not actually in the measure anymore."

Bill text as amended by the Senate on July 1, 2025

House edits the One Big Beautiful Bill Act through a rule resolution

On June 11, the House passed edits to the reconciliation bill through a rule resolution (H.Res.492). The rule passed 213-207. Representative Thomas Massie (R) was the only Republican to vote against the bill. No provisions were added by the rule; deletions were made to prevent the bill from violating the Senate's Byrd Rule based on statements from the Senate Parliamentarian. Some of the provisions that were removed by the rule are as follows:

• a provision aimed at preventing employee retention tax credit fraud,
• a provision repealing a wilderness protection law that prevents mining leases in the Boundary Waters of Minnesota, and
• provisions providing funding to the military for certain missiles and intelligence programs.

The section below provides the text of the bill as amended by the House on June 11, 2025.

Bill text as of June 11, 2025

House passes H.R.1, the One Big Beautiful Bill Act

On May 22, the US House of Representatives amended H.R. 1, the One Big Beautiful Bill Act, and then passed the amended version with a vote of 215-214. REINS-style provisions that had appeared in a previous version of the bill were amended out before its passage in the House.

The section below provides the text of the bill as passed by the House on May 22, 2025.

Bill text as of May 22, 2025 (click to expand)

Bill text as of May 20, 2025 (click to expand)

House Rules Committee advances reconciliation bill

After more than 21 hours of debate, the House Rules Committee voted 8-4 to advance the reconciliation bill on May 21. Amendments that were made by the committee include:

• setting Medicaid work requirements to begin at the end of 2026 rather than at the beginning of 2029,
• changing the definition of 'qualified alien' with regard to Medicaid,
• allowing states that haven't expanded Medicaid to send supplemental payments to hospitals and other healthcare providers,
• changing the State and Local Tax (SALT) deduction cap to $40,000 for certain brackets,
• ending certain clean energy subsidies from the Inflation Reduction Act of 2022 sooner,
• renaming MAGA child savings accounts to TRUMP accounts,
• striking provisions that would have allowed for the sale of federal lands in Nevada and Utah, and
• removing a firearm suppressor tax.

House Budget Committee advances reconciliation bill

The House Budget Committee voted 17-16 to advance the One Big Beautiful Bill Act budget reconciliation bill on May 18. Rep. Chip Roy (R), Rep. Josh Brecheen (R), Rep. Andrew Clyde (R), and Rep. Ralph Norman (R) voted "present" after having voted against its advancement two days earlier. Rep. Lloyd Smucker (R), who had also voted against the bill on May 16, voted in favor of advancing it to the House floor. Rep. Chip Roy (R) had indicated that some of the reasons for his initial opposition to the bill were that he wanted to see more savings and specifically wanted to see the immediate implementation of Medicaid work requirements and removal of clean energy subsidies that were part of the Inflation Reduction Act of 2022. He stated that he switched his vote “out of respect for the Republican Conference and the President to move the bill forward.”

The House Budget Committee voted 16-21 against advancing the budget reconciliation bill in their markup of the text on May 16. Five Republicans, Rep. Chip Roy (R), Rep. Josh Brecheen (R), Rep. Andrew Clyde (R), Rep. Ralph Norman (R), and Rep. Lloyd Smucker (R) voted against advancing the bill. The full text of the draft of the omnibus bill is below:

Omnibus budget reconciliation bill (May 15, 2025)

Republican Representatives' letter expresses oppositions to reduction of Medicaid coverage for vulnerable populations

Twelve Republican Representatives wrote a letter stating that they, "cannot and will not support a final reconciliation bill that includes any reduction in Medicaid coverage for vulnerable populations." The letter was addressed to Speaker of the House Mike Johnson (R), Majority Leader Steve Scalise (R), Majority Whip Tom Emmer (R), and the Chairman of the House Energy and Commerce Committee, Brett Guthrie (R). The House Energy and Commerce Committee was instructed to find $880 billion in spending cuts by the 2025 budget resolution. Medicaid is within the jurisdiction of the Energy and Commerce subcommittee on Health.

The Representatives who signed the letter are as follows:

• Rep. David Valadao (R),
• Rep. Don Bacon (R),
• Rep. Jeff Van Drew (R),
• Rep. Rob Bresnahan Jr. (R),
• Rep. Juan Ciscomani (R),
• Rep. Jennifer Kiggans (R),
• Rep. Young Kim (R),
• Rep. Rob Wittman (R),
• Rep. Nicole Malliotakis (R),
• Rep. Nicholas J. LaLota (R),
• Rep. Andrew Garbarino (R), and
• Rep. Jeff Hurd (R).

Budget reconciliation provisions related to Ballotpedia's policy coverage areas

The sections below include information about notable provisions from the bill that are related to Ballotpedia's policy coverage areas:

School choice in the One Big Beautiful Bill Act

See also: Private school choice policies in the 2025 budget reconciliation bill (One Big Beautiful Bill Act)

The One Big Beautiful Bill Act included language establishing a private school choice tax credit policy. The tax credit measure became the first federal private school choice policy, providing families in states that elect to participate with federal funding for private school tuition, tutoring, and other expenses.

Click here to view Ballotpedia's analysis of the impact of school choice on rural school districts and communities.

Under the final version, signed into law on July 4:

• Donors could lower their tax liability by $1 for every $1 donated to accredited Scholarship-Granting Organizations (SGOs) of up to $1,700. The total amount of credits the program can offer is not capped.
• The scholarships would be available to families making 300% of the median income in the region. The scholarships could be used to pay private school tuition, hire tutors, and purchase textbooks and other supplies.
• States can elect to participate in the program; they are not required to.
  

Click here to read in detail about school choice provisions in the One Big Beautiful Bill Act.

Medicaid work requirements in the One Big Beautiful Bill Act

See also: Work requirements policies in the 2025 budget reconciliation bill (One Big Beautiful Bill Act)

The 2025 budget reconciliation bill that was signed into law on July 4 requires states to adopt community engagement requirements for able-bodied adults without dependents on Medicaid by January 1, 2027. These community engagement requirements can be met by doing any of the following for 80 hours a month:

• working,
• doing community service,
• participating in a work program, or
• doing a combination of these activities.

An individual could also meet the requirements by enrolling at least part-time in an educational program or by making a monthly income of at least 80 times the federal hourly minimum wage. Failure to comply with the community engagement requirement would result in the denial of an application for Medicaid or disenrollment from the program.

Click here to read in detail about Medicaid work requirements in the One Big Beautiful Bill Act.

SNAP work requirements in the One Big Beautiful Bill Act

See also: Work requirements policies in the 2025 budget reconciliation bill (One Big Beautiful Bill Act)

The 2025 budget reconciliation bill that was signed into law on July 4 changed the able-bodied adult without dependents (ABAWD) work requirement for SNAP. The age range for ABAWDs who are required to work was expanded from ages 18 to 54 to include adults up to age 64. Exemptions were removed for people who are currently homeless, who are veterans, who are responsible for a dependent child over the age of 13, and people who are 24 years old or younger and were in foster care when they became legal adults in their state. Exemptions were added for individuals who are defined as Indian, Urban Indian, or Californian Indian by the Indian Health Care Improvement Act.

Under the new law, the following are exempt from the ABAWD work requirements for the SNAP program:

• People under 18 or over 65 years of age,
• Individuals who are medically certified as physically or mentally unfit for employment,
• Caregivers responsible for a dependent child under 14 years of age,
• People who are exempt from general SNAP work requirements,
• Individuals who are pregnant, and
• People defined as an Indian, Urban Indian, or Californian Indian by the Indian Health Care Improvement Act.

The bill also removed language allowing states to apply for time limit waivers to the ABAWD work requirements if there are insufficient jobs. States other than Alaska and Hawaii may only apply for these waivers if the unemployment rate is above 10%. The bill allows Alaska and Hawaii to acquire these time limit waivers if the unemployment rate is 1.5 times that of the national unemployment rate or more until the end of 2028.

Click here to read in detail about SNAP work requirements provisions in the One Big Beautiful Bill Act.

Federalism-related provisions in the One Big Beautiful Bill Act

See also: Federalism-related policies in the 2025 budget reconciliation bill (One Big Beautiful Bill Act)

The "One Big Beautiful Bill Act" (H.R.1) includes several provisions that significantly reshape the roles and responsibilities between the federal government and individual states. Key areas of proposed change include:

• Supplemental Nutrition Assistance Program (SNAP) adjustments: The One Big Beautiful Bill Act includes major nutrition policy changes that shift financial and administrative responsibilities to states, restrict federal agency discretion, and impose new conditions on state implementation—marking a significant exercise of congressional control over federal-state program design.
• Medicaid program changes: This budget reconciliation bill made significant changes to the Medicaid program, affecting state budgets, eligibility enforcement, and program administration by shifting more responsibility to states and narrowing federal flexibility.
• Education policy changes: This act introduces new cooperative federalism elements in higher education policy by requiring state validation for access to certain federal student aid. While most administrative authority remains with the U.S. Department of Education, the law conditions federal Workforce Pell Grant eligibility on state certification of training programs, linking federal funding to state-defined workforce needs.
• Environmental and climate grant program rescissions: This bill eliminates or rescinds funding for a wide range of environmental programs, many of which were administered through federal-state partnerships. These changes reduce federal financial support for state-led environmental initiatives and rescind block grants and implementation funding that gave states discretion over climate and infrastructure policies.
• Homeland security and border assistance: The bill appropriates billions in new federal homeland security funding, with significant allocations flowing through state-administered grants. While most activities remain federally controlled, the law expands state and local discretion over how security funds are used—particularly for border-related infrastructure and operations—while reaffirming federal authority over immigration enforcement.
• Immigration-related state and local reimbursement: This bill creates a federal reimbursement fund for state and local governments addressing immigration-related criminal activity, reinforcing a model of cooperative federalism tied to law enforcement and judicial support.
• Renewable energy revenue sharing: This bill reinforces principles of fiscal federalism by directing a portion of federal renewable energy revenues to subnational governments.

Click here to read in detail about these federalism-related provisions in the One Big Beautiful Bill Act.

Proposed REINS Act provisions in the One Big Beautiful Bill Act (not included in final bill)

See also: Administrative state policies in the 2025 budget reconciliation bill

Major provisions from the Regulations from the Executive in Need of Scrutiny Act (REINS Act) were included in the House Judiciary Committee's draft of their budget reconciliation bill on April 27, but were not included in the final version of the bill. The provisions were advised against by the Senate Parliamentarian through the Byrd Bath process.

The provisions related to REINS that were located under Subtitle B—Regulatory Matters in the April 27 draft included:

• requirements for agency reports on certain proposed agency actions,
• provisions that task the Comptroller General with determining if agency actions are major rules and requirements for the Comptroller reports on these findings,
• a provision requiring major rules that increase revenues to be approved by a joint resolution of approval before they can take effect,
• provisions allowing review of past agency rules, similarly to the Congressional Review Act, and
• provisions for the review of agency rules currently in effect.

Provisions related to the administrative state that were included in the final budget reconciliation bill signed into law on July 4, 2025 are as follows:

Section 90103 of the bill appropriates $100 million to the Office of Management and Budget, to be used "for purposes of finding budget and accounting efficiencies in the executive branch."

Click here to read more about proposed and included provisions related to the administrative state from the One Big Beautiful Bill Act.

2025 budget resolution (H.Con.Res.14) detailed timeline

See also: Budget resolutions proposed during the 2025 U.S. Congress reconciliation process

House votes to adopt Senate-amended version of H.Con.Res.14

The House of Representatives voted to adopt the Senate-amended version of budget resolution H.Con.Res.14, completing the budget resolution process on April 10. The House voted 216-214 in favor of the resolution, with 216 Republicans voting in favor and Rep. Victoria Spartz (R) and Rep. Thomas Massie (R) joining 212 Democrats in voting against the resolution. After the budget resolution process is complete, committees begin drafting reconciliation bills according to the reconciliation directives in the resolution. Click here to see the details of the final resolution passed by both chambers and the instructions provided to committees in the Senate and the House.

Final version of House Budget Resolution (agreed to April 10, 2025)

Senate passes amended version of H.Con.Res.14

The Senate voted 51-48 to pass the amended version of the House budget resolution (H.Con.Res.14) after a vote-a-rama on April 5. The only Republicans who voted against the bill were Sen. Rand Paul (R) and Sen. Susan Collins (R). The House will have to pass this amended version of the bill before it is sent to the president to be signed or vetoed.

Senate Budget Committee releases amendments to H.Con.Res.14

The Senate Committee on the Budget published an amended version of the House budget resolution proposal in a press release on April 2. Some amendments include reconciliation instructions for Senate Committees, an increase of the debt ceiling, and amendments related to certain provisions of the Tax Cuts and Jobs Act (2017) that are based on a current policy baseline. The Senate Parliamentarian did not make a formal ruling as to whether this use of a current policy baseline is permissible or not.

The Senate voted 52-48 in favor of a motion to begin floor proceedings on the budget resolution on April 3. This began the 50 hours of floor debate that are allowed for budget resolutions. The Senate scheduled consideration of the bill for April 4.

The text of the amended House budget resolution proposal that was under consideration on April 4 is available below:

Proposed Senate amended version of House Budget Resolution (April 2, 2025)

House adopts budget resolution, H.Con.Res.14

The House voted 217 to 215 to adopt their budget resolution on February 25. All Republicans voted in favor except for Thomas Massie (R), who voted against. All democrats voted against the resolution except for Raúl Grijalva (D), who did not vote.

February 19th comments from the president on the budget resolution

President Donald Trump (R) expressed support for the House budget resolution proposal in favor of the Senate proposal.

“

The House and Senate are doing a SPECTACULAR job of working together as one unified, and unbeatable, TEAM, however, unlike the Lindsey Graham version of the very important Legislation currently being discussed, the House Resolution implements my FULL America First Agenda, EVERYTHING, not just parts of it! 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.'

”

House Budget Committee advances budget resolution

The House Budget Committee released a proposal for the budget resolution on February 12, the text of which is provided below. The House Budget Committee voted to advance the resolution to the House floor during their markup meeting on February 13.

The U.S. House budget resolution proposal approved by the House Budget Committee on February 13, 2025, includes taxes, the border, defense, and energy, as some of its main policy areas of focus.

Introduced version of the House 2025 Budget Resolution (February 12, 2025)

2025 Senate budget resolution proposal

The reconciliation process can originate in the House or the Senate. In 2025, two different approaches were proposed and discussed:

• one reconciliation bill addressing as many policy priorities as possible, and
• a two-bill approach that would address energy, border, and immigration with one bill and use a second bill to address taxes.

House Speaker Mike Johnson (R) supported the one-bill approach. Senate Majority Leader John Thune (R) supported separating the effort into two bills.

Senate budget resolution proposal

See also: 2025 U.S. Senate budget resolution proposal

Senate votes to begin floor proceeding on an amended version of the House reconciliation bill

The Senate voted in favor of a motion to begin floor proceedings on an amended version of H.Con.Res.14 on April 3. The amendments were released on April 2.

Senate Budget Committee advances budget resolution

Chairman of the Senate Budget Committee, Lindsey Graham (R) released a proposal for the budget resolution on February 7, the text of which is provided below. Meetings for markup of the budget resolution proposal were scheduled for February 12, and February 13. After the meeting on the 12th, the Senate Budget Committee voted to advance the budget resolution proposal to the Senate floor and cancelled the second scheduled meeting.

The U.S. Senate budget resolution proposal approved by the Senate Budget Committee on February 12, 2025, includes the border, defense, and energy, as some of its main policy areas of focus.

Introduced version of the Senate 2025 Budget Resolution (February 7, 2025)

President Donald Trump and Republican leadership comments on reconciliation plan

January 27th comment from the president

President Trump commented on his plans to include provisions related to the border in the 2025 reconciliation package.

“

In the coming weeks, I’m looking forward to working with Congress on a reconciliation bill that financially takes care of our plan to totally and permanently restore the sovereign border of the United States once and for all. This should include full funding for a record increase in border security personnel and retention bonuses for ICE and border patrol.

”

Trump also said,

“

We don’t want to get hung up on the budget process … whether it’s one bill, two bills, I don’t care. They’re going to work it out one way or the other. But the bottom line, the end result, is going to be the same.

”

Historical usage of budget reconciliation

See also: Uses of budget reconciliation in Congress

In total since 1985, Congress has passed 27 reconciliation bills. Twenty-three (23) of the bills were signed by the president and enacted. Four of the reconciliation bills passed both chambers of Congress but were vetoed by the President.

Between 2010 and 2024, Democratic trifectas passed three budget reconciliation bills, Republican trifectas passed one, and one was passed by a Republican-controlled Congress and vetoed by a Democratic president in a divided government. Reconciliation is most frequently used when one party has trifecta control of the House, the Senate, and the Presidency, but does not have a 60% majority in the Senate.

Democrats used reconciliation to pass the Health Care and Education Reconciliation Act of 2010 -- including the final version of the Affordable Care Act (Obamacare) -- and the Inflation Reduction Act of 2022 -- including funding for environmental and climate-related policies and projects, increased corporate taxes, and the extension of Medicaid expansion.

Republicans used reconciliation in 2018 to pass the Tax Cuts and Jobs Act, including decreased individual income and corporate taxes and allowances for oil and gas drilling on certain federal land.

Democrats tried to enact gun control measures and increase the federal minimum wage to $15 per hour through reconciliation bills in 2015 and 2021, respectively, but Republican senators filed points of order against the amendments according to the Byrd Rule, and the provisions were removed.

Republicans proposed cutting certain Social Security, Medicare, or Medicaid benefits as part of a reconciliation bill in 2017, but Democrats filed points of order against the amendments according to the Byrd Rule, and the provisions were removed.

The following chart provides an overview of the uses of budget reconciliation since 2010 that passed both chambers, including vetoed bills.

Budget reconciliation bills since 2010 that passed both chambers
Bill name	Bill number	Action date	President	Presidential action	Federal trifecta status
Health Care and Education Reconciliation Act of 2010	S.Con.Res. 13	March 30, 2010	Barack Obama (D)	Signed into law	Democratic
Restoring Americans' Healthcare Freedom Reconciliation Act of 2015	S.Con.Res. 11	January 8, 2016	Barack Obama (D)	Vetoed	Divided
Tax Cuts and Jobs Act of 2018	H.Con.Res. 71	December 22, 2017	Donald Trump (R)	Signed into law	Republican
American Rescue Plan Act of 2021	S.Con.Res. 5	March 11, 2021	Joe Biden (D)	Signed into law	Democratic
Inflation Reduction Act of 2022	S.Con.Res. 14	August 16, 2022	Joe Biden (D)	Signed into law	Democratic

• Click here for an overview of past budget reconciliation use.
  Read more

The creation and development of the budget reconciliation process

How and when was the budget reconciliation process created?

See also: Congressional Budget and Impoundment Control Act of 1974

The budget reconciliation process was created by Title III of the Congressional Budget and Impoundment Control Act of 1974. The law, in addition to the budget reconciliation process, created congressional budget committees and the Congressional Budget Office.

President Richard Nixon (R) signed the law into effect on July 12, 1974, to establish a congressional budget process. The bill, in part, amended the Budget and Accounting Act of 1921, which sponsors of the Congressional Budget and Impoundment Control Act argued "gave too much power to the president, at the expense of Congress."

Click here to read more about the provisions of the law outlining the budget reconciliation process.

How has the budget reconciliation process changed since it was created?

Since its creation in 1974, the budget reconciliation process has changed in several ways. Below are some of those key changes.

Addition of the Byrd Rule

The Byrd Rule was first introduced in 1985 as a Senate rule to prevent non-budgetary provisions from being included in reconciliation bills. Initially, it was a procedural guideline, but it was codified into law in 1990 through the Budget Enforcement Act. The addition and codification of the Byrd Rule created a mechanism — most often employed by the minority party — to challenge and remove provisions not directly focused on budgetary matters. The Byrd Rule is one of the only enforcement mechanisms for limiting the scope of reconciliation bills.

• Click here for a detailed explanation of the Byrd Rule.
  Read more
• Click here for examples of the Byrd Rule in practice.
  Read more

Expansion of Reconciliation Beyond Deficit Reduction

The budget reconciliation process was originally designed to streamline the budget process and focus on deficit reduction. Over time, its use expanded to include broader fiscal policies. In the 1980s, reconciliation was used for both spending cuts and tax increases, which showed a shift in its role in federal budget management. The 2001 tax cuts were one of the first major reconciliation bills focused on reducing revenue rather than cutting spending, signaling a shift in how the process was applied. Since then, reconciliation has been used for a range of fiscal measures, including both tax and spending policies.

Text of statute governing reconciliation and the Byrd Rule

U.S. statute governing reconciliation

2 U.S. Code § 641 details and provides for the execution of the reconciliation process:

“ (a) Inclusion of reconciliation directives in concurrent resolutions on the budget A concurrent resolution on the budget for any fiscal year, to the extent necessary to effectuate the provisions and requirements of such resolution, shall— (1) specify the total amount by which— (A) new budget authority for such fiscal year; (B) budget authority initially provided for prior fiscal years; (C) new entitlement authority which is to become effective during such fiscal year; and (D) credit authority for such fiscal year, contained in laws, bills, and resolutions within the jurisdiction of a committee, is to be changed and direct that committee to determine and recommend changes to accomplish a change of such total amount; (2)specify the total amount by which revenues are to be changed and direct that the committees having jurisdiction to determine and recommend changes in the revenue laws, bills, and resolutions to accomplish a change of such total amount; (3) specify the amounts by which the statutory limit on the public debt is to be changed and direct the committee having jurisdiction to recommend such change; or (4) specify and direct any combination of the matters described in paragraphs (1), (2), and (3) (including a direction to achieve deficit reduction). (b) Legislative procedure If a concurrent resolution containing directives to one or more committees to determine and recommend changes in laws, bills, or resolutions is agreed to in accordance with subsection (a), and— (1) only one committee of the House or the Senate is directed to determine and recommend changes, that committee shall promptly make such determination and recommendations and report to its House reconciliation legislation containing such recommendations; or (2) more than one committee of the House or the Senate is directed to determine and recommend changes, each such committee so directed shall promptly make such determination and recommendations and submit such recommendations to the Committee on the Budget of its House, which, upon receiving all such recommendations, shall report to its House reconciliation legislation carrying out all such recommendations without any substantive revision. For purposes of this subsection, a reconciliation resolution is a concurrent resolution directing the Clerk of the House of Representatives or the Secretary of the Senate, as the case may be, to make specified changes in bills and resolutions which have not been enrolled. (c) Compliance with reconciliation directions (1) Any committee of the House of Representatives or the Senate that is directed, pursuant to a concurrent resolution on the budget, to determine and recommend changes of the type described in paragraphs (1) and (2) of subsection (a) with respect to laws within its jurisdiction, shall be deemed to have complied with such directions— (A) if— (i) the amount of the changes of the type described in paragraph (1) of such subsection recommended by such committee do not exceed or fall below the amount of the changes such committee was directed by such concurrent resolution to recommend under that paragraph by more than— (I) in the Senate, 20 percent of the total of the amounts of the changes such committee was directed to make under paragraphs (1) and (2) of such subsection; or (II) in the House of Representatives, 20 percent of the sum of the absolute value of the changes the committee was directed to make under paragraph (1) and the absolute value of the changes the committee was directed to make under paragraph (2); and (ii) the amount of the changes of the type described in paragraph (2) of such subsection recommended by such committee do not exceed or fall below the amount of the changes such committee was directed by such concurrent resolution to recommend under that paragraph by more than— (I) in the Senate, 20 percent of the total of the amounts of the changes such committee was directed to make under paragraphs (1) and (2) of such subsection; or (II) in the House of Representatives, 20 percent of the sum of the absolute value of the changes the committee was directed to make under paragraph (1) and the absolute value of the changes the committee was directed to make under paragraph (2); and (B) if the total amount of the changes recommended by such committee is not less than the total of the amounts of the changes such committee was directed to make under paragraphs (1) and (2) of such subsection. (2) (A) Upon the reporting to the Committee on the Budget of the Senate of a recommendation that shall be deemed to have complied with such directions solely by virtue of this subsection, the chairman of that committee may file with the Senate appropriately revised allocations under section 633(a) of this title and revised functional levels and aggregates to carry out this subsection. (B) Upon the submission to the Senate of a conference report recommending a reconciliation bill or resolution in which a committee shall be deemed to have complied with such directions solely by virtue of this subsection, the chairman of the Committee on the Budget of the Senate may file with the Senate appropriately revised allocations under section 633(a) of this title and revised functional levels and aggregates to carry out this subsection. (C) Allocations, functional levels, and aggregates revised pursuant to this paragraph shall be considered to be allocations, functional levels, and aggregates contained in the concurrent resolution on the budget pursuant to section 632 of this title. (D) Upon the filing of revised allocations pursuant to this paragraph, the reporting committee shall report revised allocations pursuant to section 633(b) of this title to carry out this subsection. (d) Limitation on amendments to reconciliation bills and resolutions (1) It shall not be in order in the House of Representatives to consider any amendment to a reconciliation bill or reconciliation resolution if such amendment would have the effect of increasing any specific budget outlays above the level of such outlays provided in the bill or resolution (for the fiscal years covered by the reconciliation instructions set forth in the most recently agreed to concurrent resolution on the budget), or would have the effect of reducing any specific Federal revenues below the level of such revenues provided in the bill or resolution (for such fiscal years), unless such amendment makes at least an equivalent reduction in other specific budget outlays, an equivalent increase in other specific Federal revenues, or an equivalent combination thereof (for such fiscal years), except that a motion to strike a provision providing new budget authority or new entitlement authority may be in order. (2) It shall not be in order in the Senate to consider any amendment to a reconciliation bill or reconciliation resolution if such amendment would have the effect of decreasing any specific budget outlay reductions below the level of such outlay reductions provided (for the fiscal years covered) in the reconciliation instructions which relate to such bill or resolution set forth in a resolution providing for reconciliation, or would have the effect of reducing Federal revenue increases below the level of such revenue increases provided (for such fiscal years) in such instructions relating to such bill or resolution, unless such amendment makes a reduction in other specific budget outlays, an increase in other specific Federal revenues, or a combination thereof (for such fiscal years) at least equivalent to any increase in outlays or decrease in revenues provided by such amendment, except that a motion to strike a provision shall always be in order. (3) Paragraphs (1) and (2) shall not apply if a declaration of war by the Congress is in effect. (4) For purposes of this section, the levels of budget outlays and Federal revenues for a fiscal year shall be determined on the basis of estimates made by the Committee on the Budget of the House of Representatives or of the Senate, as the case may be. (5) The Committee on Rules of the House of Representatives may make in order amendments to achieve changes specified by reconciliation directives contained in a concurrent resolution on the budget if a committee or committees of the House fail to submit recommended changes to its Committee on the Budget pursuant to its instruction. (e) Procedure in Senate (1) Except as provided in paragraph (2), the provisions of section 636 of this title for the consideration in the Senate of concurrent resolutions on the budget and conference reports thereon shall also apply to the consideration in the Senate of reconciliation bills reported under subsection (b) and conference reports thereon. (2) Debate in the Senate on any reconciliation bill reported under subsection (b), and all amendments thereto and debatable motions and appeals in connection therewith, shall be limited to not more than 20 hours. (f) Completion of reconciliation process It shall not be in order in the House of Representatives to consider any resolution providing for an adjournment period of more than three calendar days during the month of July until the House of Representatives has completed action on the reconciliation legislation for the fiscal year beginning on October 1 of the calendar year to which the adjournment resolution pertains, if reconciliation legislation is required to be reported by the concurrent resolution on the budget for such fiscal year. (g) Limitation on changes to Social Security Act Notwithstanding any other provision of law, it shall not be in order in the Senate or the House of Representatives to consider any reconciliation bill or reconciliation resolution reported pursuant to a concurrent resolution on the budget agreed to under section 632 or 635 of this title, or a joint resolution pursuant to section 907d of this title, or any amendment thereto or conference report thereon, that contains recommendations with respect to the old-age, survivors, and disability insurance program established under title II of the Social Security Act [42 U.S.C. 401 et seq.]. ”

The Byrd Rule in U.S. statute

Below is the text of 2 U.S. Code § 644, which constitutes the Byrd Rule:

“ (a)In general When the Senate is considering a reconciliation bill or a reconciliation resolution pursuant to section 641 of this title (whether that bill or resolution originated in the Senate or the House) or section 907d of this title, upon a point of order being made by any Senator against material extraneous to the instructions to a committee which is contained in any title or provision of the bill or resolution or offered as an amendment to the bill or resolution, and the point of order is sustained by the Chair, any part of said title or provision that contains material extraneous to the instructions to said Committee as defined in subsection (b) shall be deemed stricken from the bill and may not be offered as an amendment from the floor. (b) Extraneous provisions (1) (A) Except as provided in paragraph (2), a provision of a reconciliation bill or reconciliation resolution considered pursuant to section 641 of this title shall be considered extraneous if such provision does not produce a change in outlays or revenues, including changes in outlays and revenues brought about by changes in the terms and conditions under which outlays are made or revenues are required to be collected (but a provision in which outlay decreases or revenue increases exactly offset outlay increases or revenue decreases shall not be considered extraneous by virtue of this subparagraph); (B) any provision producing an increase in outlays or decrease in revenues shall be considered extraneous if the net effect of provisions reported by the committee reporting the title containing the provision is that the committee fails to achieve its reconciliation instructions; (C) a provision that is not in the jurisdiction of the committee with jurisdiction over said title or provision shall be considered extraneous; (D) a provision shall be considered extraneous if it produces changes in outlays or revenues which are merely incidental to the non-budgetary components of the provision; (E) a provision shall be considered to be extraneous if it increases, or would increase, net outlays, or if it decreases, or would decrease, revenues during a fiscal year after the fiscal years covered by such reconciliation bill or reconciliation resolution, and such increases or decreases are greater than outlay reductions or revenue increases resulting from other provisions in such title in such year; and (F) a provision shall be considered extraneous if it violates section 641(g) of this title. (2) A Senate-originated provision shall not be considered extraneous under paragraph (1)(A) if the Chairman and Ranking Minority Member of the Committee on the Budget and the Chairman and Ranking Minority Member of the Committee which reported the provision certify that: (A) the provision mitigates direct effects clearly attributable to a provision changing outlays or revenues and both provisions together produce a net reduction in the deficit; (B) the provision will result in a substantial reduction in outlays or a substantial increase in revenues during fiscal years after the fiscal years covered by the reconciliation bill or reconciliation resolution; (C) a reduction of outlays or an increase in revenues is likely to occur as a result of the provision, in the event of new regulations authorized by the provision or likely to be proposed, court rulings on pending litigation, or relationships between economic indices and stipulated statutory triggers pertaining to the provision, other than the regulations, court rulings or relationships currently projected by the Congressional Budget Office for scorekeeping purposes; or (D) such provision will be likely to produce a significant reduction in outlays or increase in revenues but, due to insufficient data, such reduction or increase cannot be reliably estimated. (3) A provision reported by a committee shall not be considered extraneous under paragraph (1)(C) if (A) the provision is an integral part of a provision or title, which if introduced as a bill or resolution would be referred to such committee, and the provision sets forth the procedure to carry out or implement the substantive provisions that were reported and which fall within the jurisdiction of such committee; or (B) the provision states an exception to, or a special application of, the general provision or title of which it is a part and such general provision or title if introduced as a bill or resolution would be referred to such committee. (c) Extraneous materials Upon the reporting or discharge of a reconciliation bill or resolution pursuant to section 641 of this title in the Senate, and again upon the submission of a conference report on such a reconciliation bill or resolution, the Committee on the Budget of the Senate shall submit for the record a list of material considered to be extraneous under subsections (b)(1)(A), (b)(1)(B), and (b)(1)(E) of this section to the instructions of a committee as provided in this section. The inclusion or exclusion of a provision shall not constitute a determination of extraneousness by the Presiding Officer of the Senate. (d) Conference reports When the Senate is considering a conference report on, or an amendment between the Houses in relation to, a reconciliation bill or reconciliation resolution pursuant to section 641 of this title, upon— (1)a point of order being made by any Senator against extraneous material meeting the definition of subsections (b)(1)(A), (b)(1)(B), (b)(1)(D), (b)(1)(E), or (b)(1)(F), and (2) such point of order being sustained, such material contained in such conference report or amendment shall be deemed stricken, and the Senate shall proceed, without intervening action or motion, to consider the question of whether the Senate shall recede from its amendment and concur with a further amendment, or concur in the House amendment with a further amendment, as the case may be, which further amendment shall consist of only that portion of the conference report or House amendment, as the case may be, not so stricken. Any such motion in the Senate shall be debatable for two hours. In any case in which such point of order is sustained against a conference report (or Senate amendment derived from such conference report by operation of this subsection), no further amendment shall be in order. (e) General point of order Notwithstanding any other law or rule of the Senate, it shall be in order for a Senator to raise a single point of order that several provisions of a bill, resolution, amendment, motion, or conference report violate this section. The Presiding Officer may sustain the point of order as to some or all of the provisions against which the Senator raised the point of order. If the Presiding Officer so sustains the point of order as to some of the provisions (including provisions of an amendment, motion, or conference report) against which the Senator raised the point of order, then only those provisions (including provisions of an amendment, motion, or conference report) against which the Presiding Officer sustains the point of order shall be deemed stricken pursuant to this section. Before the Presiding Officer rules on such a point of order, any Senator may move to waive such a point of order as it applies to some or all of the provisions against which the point of order was raised. Such a motion to waive is amendable in accordance with the rules and precedents of the Senate. After the Presiding Officer rules on such a point of order, any Senator may appeal the ruling of the Presiding Officer on such a point of order as it applies to some or all of the provisions on which the Presiding Officer ruled. ”

See also

Reconciliation process and details:

• Budget reconciliation in U.S. Congress
• Filibuster and reconciliation in the United States Congress
• The Byrd Rule
• Senate Parliamentarian

Reconciliation origin, historical use, and analysis:

• Uses of budget reconciliation in Congress
• Congressional Budget and Impoundment Control Act of 1974
• Vote-a-ramas in the U.S. Senate
• What happens during Donald Trump's presidential transition process, 2024-2025
• Donald Trump presidential transition, 2024-2025

Related videos from Ballotpedia:

External links

• Congressional Research Services, "The Budget Reconciliation Process: Timing of Legislative Action," accessed December 23, 2024
• Congressional Research Service, "The Budget Reconciliation Process: The Senate’s 'Byrd Rule.'"
• Center on Budget and Policy Priorities, "Introduction to Budget “Reconciliation”, May 6, 2022
• Committee for Responsible Federal Budget, "Reconciliation 101," November 18, 2024
• Brownstein, "Reconciliation 101 and What It Means for 2025," November 13, 2024
• The Center for Children & Families (CCF) at the McCourt School of Public Policy at Georgetown University, "The Budget Resolution and Reconciliation Process Explained," December 11, 2024
• Reuters, "Explainer: How Republicans plan to pass Trump's agenda through 'reconciliation'," December 16, 2024
• Tax Foundation, "Questions About Tax Cuts, Tariffs, and Reconciliation After the Election," November 13, 2024

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