FY2018 Budget Resolution Update

While fiscal year 2018 officially begins on Sunday October 1, 2018, the House and Senate are just beginning action on passing their FY18 budget resolutions. The House and Senate budget resolutions include reconciliation instructions that will pave the way for a future tax reform measure. Reconciliation instructions allow the legislation to pass with a simple 51-vote majority in the Senate rather than usual 50-vote supermajority. In addition, Senate debate on a reconciliation bill is limited to 20 hours (10 hours on conference reports), and amendments must be germane.

The House may consider their FY18 budget resolution (H. Con. Res. 71) on the floor next week. The House Rules Committee announced that amendments are due to the committee by 3:00 PM on Monday, October 2. The House budget resolution requires the House Ways and Means Committee to submit reconciliation legislation by October 6. The budget resolution has been stalled since it was passed out of committee in July but was recently endorsed by the conservative House Freedom Caucus.

House FY18 Budget Resolution Bill Text:


House FY18 Budget Resolution Report Language:


The Senate Budget Committee released their FY18 budget resolution today, which also includes reconciliation instructions. The committee will mark up the resolution next Wednesday and Thursday. The Senate budget resolution balances the budget in 10 years, but assumes an average economic growth rate of 2.6%. The Senate Finance Committee has until November 13 to draft a tax reform measure that costs no more than $1.5T over the next 10 years. The Senate budget resolution also directs the Senate Energy and Natural Resources Committee to identify at least $1B over 10 years in deficit savings. The committee’s chairman Sen. Lisa Murkowski (R-AK) may opt to open the Arctic National Wildlife Refuge to oil and gas drilling to come up with this $1B.

Senate FY18 Budget Resolution:


Senate FY18 Budget Resolution Tables:


Senate FY18 Budget Resolution Summary:


Senate Budget Committee Justification for Tax Reform:


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