The text of the resolution does not achieve deficit neutrality in itself. Instead, we assume that economic growth will increase and therefore lead to more tax revenue.
This includes reducing the deficit by $1.5 trillion over a decade, increasing the debt cap by $4 trillion, and allowing tax cuts worth $4.5 trillion.
The settlement allows Congress to pass bills related to taxation, expenditures and government bonds.
These measures are not subject to the 60 vote filibuster threshold that applies to most laws, as they can be passed by a simple majority.
To unlock the settlement process, both the House and Senate need budgetary resolution.
The House Budget Committee blueprint includes most House Committee instructions to implement measures to reduce deficits over a decade.
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The settlement cannot increase the deficit after that period.
The committee is required to report recommendations to the House Budget Committee until March 27th.
Only Armed Services, Homeland Security and the Judiciary Committee will be releasing proposals to increase spending by $300 billion as Republicans try to strengthen their military and borders.
The resolution is the subject of weeks of negotiations between House Republicans, many of whom have long called for cuts in federal spending, and arguing to keep the bill’s deficit neutral.
The text of the resolution does not achieve deficit neutrality in itself. Instead, it assumes that economic growth will increase and tax revenues will be increased, which will reduce the bill’s fiscal impact to zero.
This includes $20 billion in defense and border security, increasing the debt cap by $4 trillion and reducing the deficit by $286 billion over a decade.
It is unclear whether the Senate will agree to the level of funding approved in a resolution from the House Budget Committee.
Already there’s a difference.
On February 11, Senate Budget Committee Chairman Lindsey Graham (Rs.C.) said he wanted to approve $150 billion in defense spending and $175 billion for border security. I did.
In contrast, the House resolution grants the Homeland Security Committee, which oversees border security, to less than $100 billion, and to grant the Armed Services Committee (for defense) below $90 billion.
The House resolution is also in conflict with the Senate’s plans for the two settlement bills.
House Speaker Mike Johnson (R-La.) has repeatedly said that his meeting could only pass one bill due to differences in opinion among its members.
In contrast, Graham and the other senators have lobbyed the 2 Bill approach.
