The Senate approved the FY2018 budget resolution by a 51-49 vote Thursday night. Such an approval sets up a widely expected tax reform bill over the next few months.In order to pass such a tax bill, both chambers of Congress will need to agree on a joint budget resolution for the 2018 fiscal year. A House GOP source told The Hill that the procedural language in the Senate resolution “seems sufficient to avoid a conference committee between the two chambers, and allow the House to simply pass the Senate resolution.”
Budget resolutions are nonbinding and don’t require the president’s signature. They are separate from the spending bills that actually fund the government. However, such a resolution, agreed to by both chambers, is necessary in allowing the Senate to pass a tax bill with just 51 votes instead of the 60 often needed for major legislation due to a special Senatorial procedure known as reconciliation. Such a procedure would also disallow a filibuster. The then-Senate-approved bill would move to a House vote, which contains a larger Republican majority. If passed, it would then require President Trump’s signature before becoming law.
The terms of the Senate resolution allow up to $1.5 trillion in tax cuts over the next decade and foresees a balanced budget within 10 years, with spending cuts required to achieve that unspecified.
The resolution is a blueprint for federal revenues and spending for the 2018 fiscal year that began October 1.
The Senate resolution instructs the Senate Finance Committee and House Ways and Means Committee to develop a tax bill by November 13. It also instructs the Senate Energy and Natural Resources Committee and House Natural Resources Committee to draft legislation that would reduce the deficit by at least $1 billion over the next 10 years.
The chamber voted 50-47 Tuesday to begin debate on the budget resolution, known as H. Con. Res. 71. Among those not present for the preliminary vote, Sen. Thad Cochran was out sick and Sen. Richard Shelby was away to attend a funeral, while Sen. Bob Menendez was absent while attending trial for corruption charges in New Jersey.
The preliminary vote allowed up to 50 hours of floor debate, with senators free to offer an unlimited number of amendments before the bill’s final vote. Senator Debbie Stabenow filed an amendment late Wednesday to spare all farm bill programs from any reduction in spending from 2019 to 2028. Senator Rand Paul was the only Republican to oppose the measure. The amendment failed.
Members from the House and Senate will now work next week to agree on a final resolution that will then be voted on by both chambers.
