Treasury Assistant Secretary for Tax Policy Ken Kies suggested March 10 that there is a low likelihood of a General Explanations of the Administration's Revenue Proposals document (known colloquially as the "Green Book") to accompany the FY27 Budget document release. Speaking at the U.S. Chamber of Commerce 2026 Tax Policy Summit, Kies suggested that a Green Book would only be necessary if the Administration had many new tax proposals. The comments follow President Trump stating on February 10 that through the "One Big Beautiful Bill Act" (OBBBA), Republicans "have gotten everything passed that we need," and that the remaining task was "perfecting a little bit of what we did." Press reports have suggested the Administration may release a budget at the end of March or beginning of April.

Kies also suggested that IRS will continue to scrutinize partnership transactions even after the March 5 IRS proposal to remove Basis Shifting TOI Proposed Regulations. A story in the Sunday Washington Post questioned whether pulling the regulations was giving up a tool to prevent tax avoidance.

IRS — An EY Tax Alert, "Proposed regulations would clarify elections for Trump accounts and pilot program contributions," is available here.

New this morning: proposed regulations (REG-117298-21) that would update certain arbitrage rules and definitions applicable to tax-exempt and other tax-advantaged bonds.

Senate — On March 10, the Senate approved a bill by Senators Catherine Cortez Masto (D-NV) and John Cornyn (R-TX) to prevent businesses from claiming a foreign tax credit or deduction against taxes paid to the Russian Federation. "It's common sense that we should disincentivize funding our adversaries in Russia … " Senator Cortez Masto said in a news release.

More generally, Semafor reported March 10 that gridlock may be descending upon the Senate due to the positions of both parties, including President Trump saying he will not sign any bills until the Safeguard American Voter Eligibility (SAVE) Act voter ID bill is enacted. He is also calling for a ban related to mail-in voting. "Senate Democrats are threatening to jam up the Senate floor with Iran votes, the Department of Homeland Security is still shut down, and Trump says he'll stop any legislation (except for DHS funding) until he gets ID and citizenship requirements for voting," the report said.

Reconciliation — As expected, there was discussion of a potential follow-on bill to the OBBBA at the House Republican members' policy retreat at President Trump's Doral resort in Florida, where President Trump addressed members Monday night (March 9). Given President Trump's comments about already enacting the party's list of accomplishments in last year's reconciliation bill and Ways and Means Committee Chairman Jason Smith's (R-MO) lingering doubts that the narrowly divided House can pass another party-line bill, the effort was seen as a heavy lift but still of interest to GOP leaders and some members, including the Budget Committee chairmen in the House and Senate.

Punchbowl News reported House Budget Committee Chair Jodey Arrington (R-TX) as saying another reconciliation bill is uncertain but necessary because, heading into the midterm elections, "Our base needs to be extra motivated this time." He said the Budget Committee may hold a markup of a budget resolution in the next 30 days but that reconciliation instructions may not be part of the initial product and won't be added "unless consent is there from the conference."

A March 10 Politico story, "House Budget chair eyes more safety-net cuts for second megabill," cited Arrington as saying "fraud prevention" in federal and state safety-net programs should be the main target of a new Republican reconciliation bill. He called for revisiting Medicaid spending cut provisions omitted from the OBBBA, arguing that Senate Republicans didn't spend "a lot of time" last year reworking them to pass under the reconciliation rules.

NOTUS reported that House Appropriations Committee Chairman Tom Cole (R-OK) told members he is skeptical that the House can pass another reconciliation bill. In a March 10 story, "House GOP Seeks 'Art of The Possible' For Second Tax Megabill," Bloomberg Government cited Cole as saying, "It's an election year, and you run out of runway sometime in late spring to early summer on things that are new, unless it's a crisis situation."

Ways and Means Chairman Smith said on CNBC yesterday that he is focused on bipartisan tax, trade, and health priorities.

Budget — The Senate Finance Subcommittee on Fiscal Responsibility and Economic Growth is holding a hearing, "The Fiscal Outlook: 2027—2036," today (Wednesday, March 11) at 3 p.m. Witnesses:

• Phillip Swagel, Director, Congressional Budget Office
• Maya MacGuineas, President, Committee for a Responsible Federal Budget
• Martha Gimbel, Executive Director and Co-Founder, The Budget Lab at Yale

Nonprofits — In an op-ed in the March 10 Washington Post, "Targeting this $2.8 trillion tax shelter could solve a big U.S. problem," former Tax Foundation President Scott Hodge called for "ending the tax exemption for America's massive nonprofit business sector." He questioned the treatment of nonprofit hospitals and health care plans, advocacy groups, sports organizations that are treated as a nonprofit "business league," and tax-exempt credit unions, but said "food banks, homeless shelters and organizations serving those in need should retain tax-exempt status."