Congress Inches Towards Budget Reconciliation; FY 2025 Appropriations Remains Uncertain

As the Republican-controlled Congress seeks to push forward the Trump Administration’s policy goals, the House and Senate have proposed budget reconciliation packages relating to increasing funding for the border and defense as well as limiting spending and renewing tax cuts. On February 13, House Republicans struck a deal within their conference to push forward the proposed 2025 budget reconciliation package. The package would direct committees to find $1.5 trillion worth of budget cuts while simultaneously providing $4.5 trillion to the Ways and Means Committee for tax cuts. The reconciliation bill would increase the deficit by up to $4 trillion over a decade. On the other side of the Capitol, the Senate Republicans have released their proposed version of a budget reconciliation bill, which has been split into two packages—one focused on increasing funding for the border, defense, and the coast guard, and a separate package on tax proposals and spending limits.

Shifting to fiscal year (FY) 2025 funding, the continuing resolution (CR) passed late December is set to lapse on March 14 (see previous COSSA coverage), it is unclear whether Congress plans to enact a year-long CR, pass the appropriations bills individually, or push appropriations through one large bill. Top appropriators are pushing to finalize the bills and avoid a stopgap bill; however, time is running out as appropriations talks continue between the two chambers.

Stay tuned to COSSA’s continued coverage on the appropriations process.