Congress is undertaking reconciliation as part of its fiscal year (FY) 2025 budget process. While the House and Senate have not yet agreed on an approach—one bill or two, among other things—most observers agree that no matter what form it takes, reconciliation could bring big changes for states. The House Budget Committee has circulated a document summarizing policy options that might be on the table. In general, these policies focus on changes to mandatory spending, rescission or cancellation of previously appropriated funds, permitting and regulatory reform, and tax modifications.
This brief summarizes policy options that would directly affect states; companion briefs cast a wider net and provide greater details on individual proposals: