The House and Senate have passed their respective fiscal year (FY) 2025 budget resolutions. A primary goal of these resolutions is to enable reconciliation legislation to enact parts of the president’s policy agenda.
The Senate prefers a two-bill approach. Its FY 2025 resolution addresses border security, military spending, and energy policy. It then plans to use the FY 2026 budget resolution to focus on tax policy, including extensions of the 2017 Tax Cuts and Jobs Act (TCJA). In contrast, the House resolution addresses all these items, in addition to steep spending cuts.
Before the reconciliation process can move forward, both chambers must adopt an identical budget resolution. This brief focuses on the reconciliation directives in the resolutions and next steps.