Congress

A delay in GOP’s tax plans could push up costs by hundreds of billions

Published

2 years ago

January 10, 2025

The price of extending Republicans’ tax cuts will surge by hundreds of billions of dollars if lawmakers dawdle, new government figures show.

The Treasury Department released numbers Friday showing that rolling over all of the soon-to-lapse provisions, as well as undoing other reductions in business benefits that were triggered by the 2017 law, would cost $5.5 trillion — substantially more than the $4 trillion the Congressional Budget Office has projected.

There’s a number of reasons why Treasury’s price tag is much higher but a big one is that its analysis begins in 2026, not 2025, like CBO’s.

That may not sound like a big deal, but when budget analysts estimate the price of legislation, they look at the anticipated expenses over a decade, and it makes a huge difference when the cost-counting clock starts.

Right now, the government is in its 2025 fiscal year, and so analysts look at years 2025 through 2034 — and expenses in 2025 are minimal because Republicans’ tax cuts are still on the books. About 40 provisions are due to expire at the end of the year.

But when the new fiscal year begins Oct. 1, analysts will begin tallying up costs between 2026 and 2035, as Treasury happened to do in its in analysis. That means the very cheap year of 2025 will fall out of the picture, and the very expensive year of 2035 — when costs are expected to run $600 billion — will suddenly be included.

House Speaker Mike Johnson (R-La.) has said he wants to get a bill including the tax provisions on President-elect Donald Trump’s desk by the end of April — an ambitious timeline given the size of the package and Congress’ tendency to dawdle. Some tax vets now expect lawmakers to take until their August recess to wrap up their plans, if not longer.

Republicans are off to a slow start, with lawmakers bogged down in an extended and so far unresolved debate over whether to tackle immigration first and put off taxes until later or combine them into a single bill.

The House and Senate intend to go their own ways, with competing approaches, which amounts to postponing critical decisions, like how much to spend on a tax bill, that have to be resolved before they can use the “reconciliation” procedure they’re depending on to get their plans through the balky Senate.

Treasury wasn’t trying to warn Republicans of the cost of delay; it was examining the cost and the biggest winners of renewing the provisions. Not surprisingly, the analysis says the super-rich would see the biggest benefits, with the top 0.1 percent reaping a 4.2 percent increase in their after-tax incomes compared to the roughly 1.2 percent increase for those in the middle of the income spectrum.

CBO is expected to release next week its own revised estimates of the cost of extending the provisions.

Last year, it put the price at $4 trillion or $4.6 trillion, including increased debt service.

It’s not like Congress to work far ahead of schedule, but had lawmakers taken up the extension of the Tax Cuts and Jobs Act in 2023, the price would have been easier to swallow. CBO pegged the cost then at a comparatively paltry $3 trillion, or $3.45 trillion including interest expense — because its estimate then included not just one but two cheap years, 2024 and 2025.

Congress

Trump needles Cornyn as Blanche remains blocked

Published

4 hours ago

July 31, 2026

Blue Light Newsroom

President Donald Trump goaded John Cornyn on social media Friday morning, accusing the Texas senator of withholding his vote on Todd Blanche’s attorney general nomination in retaliation for Trump’s central role in his political demise.

Cornyn, who lost his May primary to Texas’ scandal-ridden attorney general, the Trump-endorsed Ken Paxton, has threatened to block Blanche’s nomination in the Senate Judiciary Committee until the White House promises to permanently shelve its $1.8 billion “anti-weaponization fund” in writing — something Trump appears unwilling to do.

“John Cornyn never had a problem with the so called “Fund,” which will not benefit me, but rather the great American Patriots who were hunted down like dogs and whose lives were unfairly and illegally destroyed by the Crooked Joe Biden Administration, until after I decided to Endorse and Support his Republican Primary opponent in Texas, who easily won the Nomination for the United States Senate,” Trump wrote on Truth Social.

Several Republicans bristled at the fund, which could have been deployed to compensate Americans who faced charges after the Jan. 6 Capitol riot and which gives the president and his family audit immunity over taxes. At his July confirmation hearing, Blanche said that the fund, part of a settlement the president reached with the IRS, was defunct. But the administration has been “reluctant to change” the text of the settlement, Cornyn told reporters Thursday.

Trump signaled his continued support for the Jan 6 rioters on Friday.

“I will always feel that these victims of government abuse should be paid back for what they were forced to endure, their lives have been ruined!” he wrote. “Millions of people agree with me, as was proven in my landslide Presidential win, where this was a major subject of debate, and so did John Cornyn, until he lost his Election to an opponent that I Endorsed.”

On Thursday, the president suggested that he could punt a Senate vote on Blanche until after Cornyn — and Sen. Thom Tillis (R-N.C.) — leaves the chamber at the end of the year. Cornyn, however, suggested on social media that there are other Republican senators with concerns about the fund.

“After the midterms, who knows who’s going to be the next United States senator from North Carolina or Texas?” Cornyn told reporters.

Congress

Capitol agenda: The Senate’s fly-out agenda takes shape

Published

5 hours ago

July 31, 2026

Blue Light Newsroom

Senate Republicans are prepping a jam-packed — if somewhat optimistic — agenda for their final week before summer recess.

Majority Leader John Thune wants to move stopgap funding through Dec. 11, bipartisan Russia sanctions legislation and a bloc of nominees — perhaps including attorney general pick Todd Blanche.

He’s also under pressure from President Donald Trump, administration officials and many of his GOP colleagues to adopt a budget resolution — the first step in unlocking another party-line spending bill.

Leaders are prioritizing the stopgap, though. Appropriations Chair Susan Collins (R-Maine) expects continuing resolution text to be unveiled later today, she told reporters Thursday, and an initial vote is expected Monday evening.

Still TBD: Collins wants to use the funding patch to block the Trump administration from putting political appointees in charge of approving grants — a demand Democratic senators are also making.

The decision is in Thune’s hands. He acknowledged a “handful of issues” are still under consideration with the CR, and said he’s “hoping both sides can come together and figure” them out.

As for the sanctions bill, leaders of both parties are still trying to work out a deal to fast-track the legislation amid concerns from some Democrats and Sen. Rand Paul (R-Ky.) that it gives Trump too much tariff power.

In addition to the nominees package, Thune also hasn’t ruled out an initial vote on the landmark cryptocurrency bill both parties have spent months negotiating or teeing up a bipartisan college sports overhaul now in final stages of talks.

But the big question is whether Republicans can take a major step toward another reconciliation bill by advancing a budget resolution.

Thune met Thursday with Budget Chair Ron Johnson (R-Wis.), who said he was “optimistic in terms of how things are kind of coming together.”

Republicans anticipate giving a number of Senate committees instructions for the bill, setting up a lengthy and politically painful process ahead of adoption despite pushes for urgency from the White House.

Trump’s chief of staff, Susie Wiles, was the latest official to head to Capitol Hill to try and light a fire under top Republicans. But GOP senators don’t necessarily see the urgency.

“The hard part is the president wants to be able to move fast, like an executive can move, and we’re a legislative branch,” said Sen. James Lankford (R-Okla.). “It doesn’t move that fast.”

What else we’re watching:

— BLANCHE TEETERING: Todd Blanche’s nomination as attorney general isn’t dead yet. But it’s certainly on life support. The acting AG met with Cornyn and Tillis Thursday at NRSC headquarters, and one person familiar with the discussion said the group was “working collaboratively now.” But it would now be difficult to confirm him before August recess under Senate rules.

— FARM BILL TEXT: Senate Agriculture Chair John Boozman said his farm bill legislative text — originally expected Thursday — could come Friday or Saturday. The bill, which is expected to include language allowing year-round E15 sales and a potential compromise on postponing GOP-led cuts to the Supplemental Nutrition Assistance Program, is set to be marked up Thursday.

Jordain Carney and Grace Yarrow contributed to this report.

Congress

Former MLB star Mark Teixeira to hit campaign trail with GOP leaders

Published

8 hours ago

July 31, 2026

Blue Light Newsroom

House GOP leaders are planning to bring former MLB star Mark Teixeira, one of their top candidate recruits this cycle, out on the trail in battleground districts over the summer recess sprint.

Majority Leader Steve Scalise will host a fundraiser with Teixeira in New York City on Aug. 20 with Speaker Mike Johnson as a special guest, according to three people with direct knowledge of the event, granted anonymity to discuss plans that have not yet been made public.

It’s part of a New York swing where Teixeira and Johnson will also hit nearby stops in GOP Rep. Mike Lawler’s 17th Congressional District and for Mike LiPetri, who is trying to unseat Democratic Rep. Tom Suozzi in New York’s 3rd Congressional District.

Teixeira is running to replace GOP Rep. Chip Roy in Texas’ 21st Congressional District. He won a World Series title with the Yankees in 2009 and also played for the Texas Rangers, Atlanta Braves and Los Angeles Angels before retiring from professional baseball in 2016 after 14 seasons.

Because Teixeira has little chance of losing in the deep-red seat, Republican leaders are hoping to harness his star power to boost their candidates in the most competitive races. They’re planning for Teixeira to help campaign in a wider swath of battleground districts in August and through November, including likely stops in Pennsylvania and Georgia.