Last Wednesday, House Republicans released their budget resolution. The measure proposes raising the debt ceiling by $4 trillion, authorizing committees to increase the deficit by $4.5 trillion over ten years to accommodate tax cuts, mandating at least $1.5 trillion in spending cuts, and requiring a $300 billion increase in expenditures on defense, immigration enforcement, and border security. 

During a markup session of the House Budget Committee last Thursday, two amendments were accepted into the resolution. The first amendment added a provision to adjust authorized net tax cuts in relation to total mandatory spending cuts below or above $2 trillion. For instance, if the reconciliation package includes $1.5 trillion in spending cuts, it could incorporate no more than $4 trillion in net tax breaks. However, if it includes $2.5 trillion in spending cuts, the amount authorized for tax cuts would increase to $5 trillion. The second amendment directs committees to pass the REINS Act, which necessitates congressional approval for all major agency rules (defined as any rule with an annual economic impact of $100 million or more). The Committee favorably reported the amended measure on a party-line vote of 21-16.  The House is currently in recess this week, but leadership intends to bring the resolution to the floor next week.

Last week, the Senate Budget Committee also marked up its budget resolution, reporting it out by a party-line vote of 11-10. This measure proposes increasing defense and border security funding by more than $300 billion over four years, along with implementing certain energy policy changes, all of which are to be fully offset by spending cuts.  Senate leadership attempted to advance its preferred two-bill strategy ahead of the House by bringing its budget resolution to the floor this week. Under Senate rules, the measure would be subject to up to 50 hours of floor debate followed by a vote-a-rama, during which Democrats are expected to offer numerous politically charged amendments. Final passage would require simple majority support.  Ultimately, both chambers will need to agree on a single approach and pass identical budget resolutions to initiate the budget reconciliation process, thereby allowing the relevant committees to begin drafting legislation.