Later today the U.S. House of Representatives will begin debate on House Concurrent Resolution 14 (H.Con.Res. 14) for the 119th Congress. This legislation is the overall budget framework, a guide for the Congress in other actions it will take later this year in appropriations legislation, program funding, and tax legislation. This is a summary of that House Budget Resolution.
Legislation > https://www.govinfo.gov/content/pkg/BILLS-119hconres14rh/pdf/BILLS-119hconres14rh.pdf
House Concurrent Resolution 14 (H.Con.Res. 14) for the 119th Congress establishes the congressional budget for the U.S. Government for fiscal year (FY) 2025 and outlines budgetary levels for FY2026 through FY2034. Introduced by Representative Jodey Arrington on February 18, 2025, the resolution serves as a fiscal blueprint, guiding federal revenue and expenditure decisions.
Key Provisions:
Budgetary Levels: The resolution specifies recommended federal revenue levels, new budget authority, budget outlays, deficits, public debt, and debt subject to limit for each fiscal year from 2025 to 2034. For instance, the recommended federal revenue for FY2025 is approximately $3.409 trillion, with incremental increases each subsequent year.
Reconciliation Instructions: H.Con.Res. 14 directs 11 House committees to develop legislation that adjusts the deficit and modifies the statutory debt limit by specified amounts over the FY2025-FY2034 period. These committees are required to submit their proposals to the House Budget Committee by March 27, 2025.
Reserve Fund: The resolution establishes a reserve fund permitting adjustments to committee allocations and other budgetary levels to accommodate reconciliation legislation. This mechanism ensures flexibility in implementing budgetary changes as necessitated by the reconciliation process.
Deficit Adjustment Mechanism: The resolution mandates that if the combined deficit reduction proposals from specified committees do not achieve at least $2 trillion in net deficit reduction, the maximum allowable deficit increase for the House Ways and Means Committee (set at $4.5 trillion) must be correspondingly reduced. Conversely, if more than $2 trillion in deficit reduction is achieved, adjustments can be made to reflect the additional savings.
Budget Enforcement Procedures: To maintain fiscal discipline, H.Con.Res. 14 outlines enforcement procedures addressing adjustments to committee allocations and the budgetary treatment of discretionary administrative expenses for entities like the Social Security Administration and the U.S. Postal Service.
Overall, H.Con.Res. 14 serves as a comprehensive fiscal framework, setting forth the U.S. Government’s budgetary priorities and constraints for the upcoming decade.
House Concurrent Resolution 14 (H.Con.Res. 14) for the 119th Congress outlines the congressional budget for fiscal year 2025 and sets forth budgetary levels for fiscal years 2026 through 2034. The resolution includes provisions that impact Medicaid, Medicare, and Social Security.
Medicaid:
The resolution proposes significant changes to Medicaid funding, aiming to reduce federal expenditures on the program. Key proposals include implementing work requirements for beneficiaries and closing state-specific loopholes, with the goal of achieving approximately $880 billion in savings over the next decade. These measures have sparked debate within the Republican Party, as some members express concern over potential negative impacts on constituents who rely on Medicaid for healthcare coverage.
Medicare:
While the resolution does not explicitly propose cuts to Medicare benefits, it emphasizes the need to address issues related to waste, fraud, and abuse within the program. For instance, Senator Chuck Grassley has initiated an inquiry into Medicare billing practices of major insurers, aiming to identify and eliminate improper payments that could be inflating costs. Such oversight efforts are intended to improve the program’s financial integrity without directly reducing beneficiary benefits.
Social Security:
The resolution maintains current funding levels for Social Security, reflecting a commitment to preserving benefits for retirees and disabled individuals. There are no proposed cuts or structural changes to the program within this budget framework. This stance aligns with previous assurances from leadership to protect Social Security from budget reductions.
In summary, H.Con.Res. 14 proposes substantial reforms to Medicaid aimed at reducing federal spending, focuses on enhancing the efficiency of Medicare through oversight and fraud reduction, and preserves existing Social Security benefits without alterations. These proposals have ignited discussions among lawmakers regarding the balance between fiscal responsibility and the potential impact on vulnerable populations.
House Concurrent Resolution 14 (H.Con.Res. 14) for the 119th Congress addresses the impending expiration of key provisions from the 2017 Tax Cuts and Jobs Act (TCJA) by allocating sufficient budgetary room to extend these tax cuts. The resolution aims to prevent significant tax increases that would affect American families and businesses if the TCJA provisions were allowed to lapse at the end of 2025.
Key Provisions Set to Expire:
Individual Income Tax Rates: The TCJA reduced individual income tax rates across various brackets. Without legislative action, these rates are scheduled to revert to higher pre-2017 levels, resulting in increased tax burdens for many taxpayers.
Standard Deduction: The TCJA nearly doubled the standard deduction, simplifying tax filings for many individuals. This enhancement is set to expire, which could lead to more taxpayers itemizing deductions and potentially higher taxable income.
Child Tax Credit (CTC): The act increased the CTC from $1,000 to $2,000 per qualifying child. If not extended, the credit will decrease, reducing tax relief for families.
State and Local Tax (SALT) Deduction Cap: The TCJA instituted a $10,000 cap on the SALT deduction. This cap is also slated to expire, which could impact taxpayers in high-tax states.
Budgetary Implications:
Extending these tax provisions is projected to have significant fiscal impacts. Independent analyses estimate that making the TCJA’s individual tax cuts permanent could add approximately $4.8 trillion to the national debt over the next decade.
Despite these concerns, proponents argue that maintaining the current tax structure is essential for continued economic growth and to avoid placing additional financial burdens on taxpayers.
In summary, H.Con.Res. 14 seeks to extend the expiring provisions of the 2017 Tax Cuts and Jobs Act, aiming to provide continued tax relief to individuals and businesses. While this move is intended to prevent tax increases, it carries substantial implications for the federal budget and national debt, necessitating careful consideration by lawmakers.
Taxation of Non-Profits
House Concurrent Resolution 14 (H.Con.Res. 14) for the 119th Congress establishes the federal budget for fiscal year 2025 and sets forth budgetary levels for fiscal years 2026 through 2034. As a budget resolution, it primarily outlines revenue and expenditure targets without enacting specific tax law changes. The resolution does not include provisions that directly alter the taxation of non-profit organizations.
However, it’s important to note that while H.Con.Res. 14 itself doesn’t modify tax policies affecting non-profits, it serves as a framework guiding future legislative actions. Specific tax law changes, including those impacting non-profit organizations, would require separate legislative proposals that align with the budgetary guidelines established in this resolution.
In summary, H.Con.Res. 14 does not directly affect the taxation of non-profit organizations but sets the stage for potential future legislation that could address such matters.
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