The Treasury Secretary said once the tax receipt is fully collected, a new “X date” will be determined to enforce an increase in debt restrictions.
WASHINGTON – Treasury Secretary Scott Bescent has proposed an update on budget adjustment talks, suggesting that tax-related factors will be resolved by July 4th.
“The house is moving things quickly and the Senate is becoming a rock step,” Bescent told reporters on April 28th. “I think they’re in a substantial agreement.”
The parliamentary settlement process allows the majority to move forward with the budget without being hampered by the filibusters from minority parties.
Timing aims to bring what is called a “big, beautiful bill” that was a majority elected in both rooms in November 2024, where President Donald Trump is called a “big, beautiful bill” filled with his second term agenda items on trade, deregulation, borders and more.
Taxes and budget cuts both lock the points into negotiations.
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The house version of the two-track bill requires a budget cut of at least $1.5 trillion, but the Senate version’s minimum cut is just $4 billion, which cites concerns from the Fiscal Hawks about the size of the proposed tax cut. Meanwhile, moderates are concerned about future revisions to Medicaid and, in some cases, deductions for state and local tax (salt).
The House Committee will mark up items within the budget this week.
Bescent, a member of President Donald Trump’s Cabinet, is one of the “Big Six” Republicans who are blocking details of the budget settlement package.
In addition to Bescent, the “Big Six” consists of Hassett, Johnson, Senate Majority Leader John Tune (Rs.D.), Houseway and Means Jason Smith (R-Mo.), and Senate Treasury Chairman Mike Crapo (Rs.D.).
When Thune joined the Senate, he did not immediately share his thoughts on negotiating a settlement budget.
Bessent was also asked about the “X date” of federal obligations. This is the point where the US is no longer able to take extraordinary steps to borrow money.
In March, the Congressional Budget Office fixed it in August or September. Congress should raise cuts or debt limits from that point onwards.
“We don’t have a new X date yet,” Bescent said, telling reporters that the paper tax returns are still being processed. “We can say we’ve seen revenues since last year, but we may have better calculations towards the end of the week or next week.”
He said the US would not risk missing that date for settlement negotiations.
