Congress

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

Published

8 months 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

White House declares $4.9B in foreign aid unilaterally canceled in end-run around Congress’ funding power

Published

2 days ago

August 29, 2025

Blue Light Newsroom

The White House budget office said Friday morning that President Donald Trump has canceled $4.9 billion in foreign aid by using a so-called pocket rescission — furthering the administration’s assault on Congress’ funding prerogatives.

The move raises tensions on Capitol Hill as lawmakers face an Oct. 1 deadline to avoid a government shutdown. Many lawmakers from both parties, as well as Congress’ top watchdog, view the maneuver as an illegal end-run around their “power of the purse.”

The Trump administration boldly embraced the strategy on Friday. “Congress can choose to vote to rescind or continue the funds — it doesn’t matter,” an official from the White House budget office said in a statement. “This approach is rare but not unprecedented.”

The White House is allowed to send Congress a clawbacks request and then withhold the cash for 45 days while lawmakers consider whether to approve, reject or ignore the proposal. Because there are less than 45 days left before the end of the fiscal year, Trump’s top budget officials — led by budget chief Russ Vought — argue that they can employ the so-called pocket rescission to withhold the funding until it lapses at month’s end, ensuring its cancellation regardless of what Congress decides.

The pocket rescission request was first reported by the New York Post.

Meredith Lee Hill contributed to this report.

Congress

Bondi, Patel to testify before Congress amid Epstein fallout

Published

3 days ago

August 28, 2025

Blue Light Newsroom

Two top Justice Department officials are expected to testify before the House Judiciary Committee in the coming weeks amid fallout over the administration’s handling of the Jeffrey Epstein case, according to two people granted anonymity to share scheduling information not yet public.

FBI director Kash Patel is set to give testimony Sept. 17, with attorney general Pam Bondi on tap to appear Oct. 9. Both have been invited as part of the Judiciary Committee’s general oversight work, and each will have an opportunity to outline some of the pieces of a crime bill President Donald Trump wants Hill Republicans to produce in the coming months.

But the hearings will likely focus most heavily on how the DOJ has maneuvered around the release of files related to the late, convicted sex offender.

Senior Republicans have continued over the August recess to press the Trump administration to unseal more Epstein documents after a mutiny over their release caused chaos in the GOP-controlled House, running the chamber aground before lawmakers left town early in late July.

DOJ started transmitting some of the so-called Epstein files last week in compliance with a subpoena from the House Oversight and Government Reform Committee. And Alex Acosta, President Donald Trump’s former labor secretary who singed off on Epstein’s previous plea deal as a then-U.S. attorney in Florida, will separately sit for a transcribed interview with the Oversight panel Sept. 19.

However, lawmakers otherwise have so far received scant new information during the month-long district work period, with members of both parties promising to continue to press the issue when the House is set to return to session next week.

Bondi has, in particular, been the subject of Republican consternation over allegedly withholding documents she at one point promised to reveal.

Congress

Mark Teixeira, former MLB All Star, kicks off Texas House campaign

Published

3 days ago

August 28, 2025

Blue Light Newsroom

Baseball star Mark Teixeira launched a campaign to fill an open Texas House seat Thursday, the latest celebrity athlete to dive into politics.

Teixeira is running as a Republican in a safe red seat being vacated by GOP Rep. Chip Roy. And he’s already appealing to President Donald Trump in search of a home run on the campaign trail.

“As a lifelong conservative who loves this country, I’m running for Congress to fight for the principles that make Texas and America great,” he wrote in a post on X. “It takes teamwork to win — I’m ready to help defend President Trump’s America First agenda, Texas families, and individual liberty.”

Teixeira was a superstar on the diamond, going yard 409 times in a career that spanned 14 seasons and saw him play for four big league outfits, including the Texas Rangers and New York Yankees. He last played in the 2016 season.

He reached baseball immortality when the Yankees won the World Series in 2009. He was included on the 2022 Hall of Fame ballot but failed to get enough votes from sportswriters to either get elected to the Hall or return to the ballot in future years.

Should he win the seat, he could be a major boon for Republicans in the Congressional Baseball Game, the annual charity event that pits Democrats against Republicans. The GOP has dominated the game in recent years, a gap that a former major leaguer would likely only widen.

Teixeira is leaning into his baseball bona fides.

“In Congress, he’ll bring the same grit, preparation, and competitive spirit that made him a champion in Major League Baseball to fight for Texas—and win,” reads his campaign website.

Roy, a Freedom Caucus member who has served in the House since 2019, is leaving Congress to run for the Texas attorney general post.