#TrumpTaxCuts

Budget Resolution: Tracking Trump's Tax Cuts for 2025

This update provides details on the House of Representatives' adoption of the Senate's amended budget resolution.

This update presents details on the updated Senate budget resolution.

We summarize the revenues and economic impacts of extending the expired Tax Cuts and Jobs Act of 2017, the policies advocated by President Trump in his joint address to Congress, and the budget resolutions issued by both the House and Senate.

On April 10, 2025, the House of Representatives adopted the Senate's amended version of the budget resolution that allows for $5.3 trillion in deficit-funded tax cuts (a combination of $3.8 trillion in tax cuts that are presumed to be 'costless' under the current policy baseline plus $1.5 trillion in additional allowable deficit), a $521 billion increase in defense and immigration spending, a minimum of $4 billion in spending cuts, and an increase in the debt ceiling of up to $5 trillion.

On April 2, 2025, the Senate submitted an updated budget resolution on April 2, 2025, to provide new guidance to its committees regarding changes in tax and spending policy. The resolution adopts the instructions contained in the House budget resolution for the House committees with direction to the Finance Committee.