Senate and House Advance Diverging Budget Plans

Last week, the Senate Budget Committee advanced a budget resolution that lays the groundwork for passing a border, energy, and defense reconciliation package, while deferring a tax policy bill for future consideration. The resolution authorizes $85.5 billion in annual spending, fully offset by corresponding spending cuts. Additionally, it directs several Senate committees, including Health, Education, Labor, and Pensions, to identify at least $1 billion in cuts, with the expectation that lawmakers will propose additional reductions to fully fund the package.

The resolution sets a March 7 deadline for Senate committee chairs to submit their plans. Some Senate Republicans aim to bring a border, energy, and defense bill to the floor by mid-March, coinciding with the March 14 deadline to avert a government shutdown.

This move positions the Senate on a separate and accelerated path from the House, which is expected to vote this week on its own budget blueprint. The House plan pursues a one-bill strategy incorporating President Donald Trump’s priorities alongside an extension of expiring tax cuts. It also proposes $4.5 billion in federal spending reductions, with Medicaid funding widely speculated to be among the targeted cuts.

The specific details of which programs will see reductions and who will benefit will be determined in the forthcoming Budget Reconciliation Bill once both chambers finalize their resolutions. The Academy will continue to closely monitor developments and provide updates as the process unfolds.