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11 December 2024

Prospects for budget reconciliation in 2025

The 2024 election, and control of the House, Senate, and White House, will have a big impact on what happens with the many tax provisions that are scheduled to expire or increase in 2025. With a Republican sweep and total control of Congress and the presidency in 2025, GOP leaders have said they will use a process called “budget reconciliation” to enact that party’s favored approach to taxes. If the House and Senate approve a budget resolution providing for reconciliation instructions, the process permits legislation impacting revenues and mandatory spending to pass the Senate with 51 votes rather than the normal 60-vote filibuster threshold required for most other legislation — if it meets the strict budget reconciliation rules. There is no similar process benefit to using reconciliation in the House of Representatives, but since tax legislation must originate in the House, leaders there are laying the groundwork for how the chambers may work together. 

Learn more in this EY article.

Document ID: 2024-2253

 

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