The Budget Reconciliation Struggle Continues
Early on the morning of April 5, the Senate passed its version of a budget resolution with a narrow 51-48 vote. All Democrats, along with Republican Senators Susan Collins of Maine and Rand Paul of Kentucky, voted against it. Every amendment proposed by the Democratic caucus was rejected.
However, the resolution still faces significant hurdles, as the House and Senate must reconcile their versions to pass a joint budget resolution. Disagreements over Medicaid cuts are the primary point of contention. The House has tasked the Energy & Commerce Committee with reducing the deficit by $880 billion, which would require substantial cuts to the program. Many Republican senators have expressed opposition to any bill that would result in cuts to Medicaid. While the Senate passed an amendment, 51-48, stating it would protect Medicaid for "the most vulnerable populations," it failed to define which populations those are.
In an unprecedented move, Senate Republicans used the “current policy baseline” approach, which attempts to make it appear as though extending the 2017 Tax Cuts and Jobs Act (the current tax law) would not increase the deficit. This tactic effectively zeros out the costs associated with the law to justify deeper tax cuts. Extending these tax cuts is estimated to add $4.6 trillion to the national debt over the next decade. This maneuver has sparked friction with House Republicans, particularly the “fiscal hawks,” who disapprove of the approach. Senate Republicans have opted not to seek approval for this strategy from the Senate Parliamentarian, raising concerns about potential complications down the line.
The House is working to advance the Senate bill as quickly as possible. Earlier this week, President Trump convened a meeting to rally support from House Republican holdouts, but his efforts fell short. On the evening of April 9, House Speaker Mike Johnson attempted to bring the bill to a vote but ultimately canceled it, recognizing he lacked sufficient support. As of this writing, Speaker Johnson is planning to hold another vote on April 10.
The fate of commuter benefits in the budget bill is still unknown, but ACT’s conversations on Capitol Hill have been promising. Now is the time to take action to protect the benefit – use this link to access ACT’s commuter benefits advocacy resources, or contact ACT’s Government Affairs and Policy Manager, Emma Wasserman.