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House Budget Chair Lays Out Next Steps for Tax, Spending Bill

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What You Need to Know

  • The House wants to move forward under budget reconciliation so the bill can pass the Senate with a simple majority vote.
  • All bills addressing taxes must originate in the House.
  • The 2022 budget resolution provides reconciliation instructions to 13 House and 12 Senate committees.

House Budget Committee Chairman John Yarmuth, D-K.Y., said Wednesday that the House will take the lead in moving the budget reconciliation bill forward and released a report on how the various committees plan to get to a budget recommendation by Sept. 15.

The reconciliation process allows legislation for President Joe Biden’s Build Back Better Plan to pass with a simple majority in the Senate, Yarmuth explained.

“Without the reconciliation directives in this resolution, the bold action outlined in the Plan could languish indefinitely in the Senate, putting our economy, the well-being of millions of Americans, and our nation’s future at risk,” Yarmuth stated.

The House, he continued, “will take the lead on moving the reconciliation bill forward because the Build Back Better Plan includes measures to ensure that the wealthy pay their fair share in taxes, and all bills addressing taxes must originate in the House.”

The Senate passed on Aug. 11 Senate Democrats’ $3.5 trillion 2022 budget proposal advancing President Joe Biden’s tax and economic agenda. Senate Majority Leader Chuck Schumer, D-N.Y., said the same day that he wants a budget reconciliation bill done by Sept. 15.

House Majority Leader Steny Hoyer, D-Md., said that the House will return from recess on the evening of Aug. 23 to vote on the Senate-passed budget resolution and will remain in session until its business for the week is concluded.

The budget framework sets a target of up to $3.5 trillion in gross investment allocated across the 13 House committees that have jurisdiction over some portion of the plan, Yarmuth explained.

The resolution’s reconciliation instructions call for the 13 House committees to submit recommendations consistent with these targets, along with offsets, to the Budget Committee by Sept. 15.

The 2022 budget resolution provides reconciliation instructions to 13 House and 12 Senate committees.

For instance, the House Financial Services Committee is instructed to decrease deficits by $339 million and the Education and Labor Committee by $779.5 million.

“Along with the historic infrastructure investments in the legislative pipeline, the 2022 budget resolution serves as an inflection point for our nation: restoring tax fairness, ending an era of chronic underinvestment, and making the pro-growth investments we need to keep America competitive and expand opportunities for decades to come,” Yarmuth said in a statement. “I look forward to working with my colleagues in the House, our partners in the Senate, and the Biden Administration to complete this crucial work.”

Biden’s Build Back Better Plan, Yarmuth said, “will be paid for by ensuring that the wealthy and big corporations are paying their fair share.”

Americans making less than $400,000 a year, he added, “will not see their taxes increase by a penny.”