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Elections, Debt, and Taxes: Here’s What to Expect in the 119th Congress

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Within the first weeks, lawmakers should elect a speaker and certify the 2024 election. The GOP additionally needs payments on taxes, border safety, and debt.

WASHINGTON—The 119th Congress of america will take workplace on Jan. 3, 2025, and final for 2 years, till Jan. 3, 2027. Republicans will maintain a slim majority in each the Senate and Home of Representatives.

With a Republican administration main the Government Department, it’s anticipated that Congress will try to enact conservative insurance policies into legislation.

These efforts is not going to be unfettered. There’s the Senate’s cloture vote requirement—the place the assist of 60 senators is important to beat a filibuster—in addition to divisions within the Home Republican Convention amid its single-digit majority.

Key reforms are more likely to be enacted utilizing the “finances reconciliation” course of, whereby a restricted variety of payments affecting spending, taxes, and debt can keep away from a 60-vote cloture threshold within the Senate, although their results have to be restricted to 10 years.

Congress may have a number of main legislative engagements for the primary a number of months of 2025, which we listing beneath.

Election of a Speaker of the Home

The U.S. Structure requires that the Home of Representatives select a speaker to preside over the physique. Typically, no legislative enterprise is performed within the Home till the Speaker is chosen. The foundations of the Home vest the speaker with appreciable powers.

The speaker, who’s often the chief of the bulk occasion’s convention or caucus, is the highest-ranking member of Congress and is second, behind the Vice President, within the presidential line of succession.

Electing a speaker requires a majority vote of the Home, which suggests that almost all occasion, if unified, can choose her or him. Traditionally, this was the case, whereby the winner of inner elections within the convention or caucus received unanimous assist of their occasion on the ground.

Nonetheless, within the 118th Congress, deep divisions within the Republican Convention prevented the election of a speaker—with Home Republican Chief Kevin McCarthy profitable the gavel after 15 rounds of voting, making it the longest such election since 1859. McCarthy was later ousted in October 2023 because of comparable divisions within the Republican Convention.

These considerations seem resurgent as regards McCarthy’s successor, Home Speaker Mike Johnson of Louisiana. Regardless of his profitable the convention management election and speakership nomination for the brand new Congress on Nov. 13, in addition to his getting Trump’s endorsement, some members of the Republican Convention have publicly stated they might not vote for him on the ground. The convention’s two-seat majority on Jan. 3 implies that the opposition of simply two members may stop Johnson’s election.

“I stay undecided, as do a lot of my colleagues, as a result of we noticed so most of the failures final yr that we’re involved,” Rep. Chip Roy (R-Texas) stated in an announcement to The Epoch Instances.

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The coverage chairman of the Home Freedom Caucus, Roy has incessantly dissented from the occasion on fiscal coverage laws implicating the deficit, such because the passage of omnibus authorities funding payments yearly.

On Could 8, 2024, Rep. Marjorie Taylor Greene (R-Ga.) filed a “movement to vacate the chair” that may take away Johnson from the speakership—the second such decision, after McCarthy’s elimination utilizing the identical process. She cited his assist for 2 authorities funding payments with out spending cuts favored by conservatives. The decision was “tabled” (i.e., rejected) by a large bipartisan majority on the ground however acquired the assist of 11 Home Republicans.

Therefore, barring important concessions, it’s questionable whether or not Johnson can win the speakership on the primary poll, which might re-ignite controversy on the outset of the Congress.

Certification of the 2024 Presidential Election

On Jan. 6, 2025, Congress will convene in a joint session to certify the outcomes of the 2024 presidential election by counting and approving the Electoral Faculty votes of every state. The U.S. Structure’s twelfth Modification requires this final procedural step.

As her ultimate main act in workplace, Vice President Kamala Harris, who misplaced the election to Trump, will preside over the rely.

The occasion will obtain heightened safety given the occasions on Jan. 6, 2021, and it has been designated as a Nationwide Particular Safety Occasion (NSSE) — the very best stage of safety. That is akin to presidential inaugurations and State of the Union Addresses when all federal leaders convene at one location.

No disruptions or objections from members of Congress are anticipated, notably following the passage of the Electoral Rely Reform Act in 2022, which considerably raised the thresholds for objecting to election outcomes on the ground of the Joint Session. Nonetheless, the occasion have to be held, by legislation, on Jan. 6. Ought to a speaker of the Home not be elected by then, the method could also be difficult.

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Tax Cuts and Reforms

The most important coverage merchandise that Republicans search to handle is taxation. In 2017, the occasion handed the Tax Cuts and Jobs Act (TCJA) of 2017, which decreased private earnings tax brackets and company taxes. It was Trump’s first main legislative accomplishment throughout his first time period.

As a result of the invoice was handed utilizing the finances reconciliation course of, many key provisions of the TCJA will expire in 2025. Republicans are searching for to resume them and forestall elevating taxes to earlier ranges.

Moreover, some within the GOP will search to resume a deal to broaden the Youngster Tax Credit score (CTC) negotiated in 2024 by Home Methods and Means Committee Chairman Jason Smith (R-Mo.) and Senate Finance Committee Chairman Ron Wyden (D-Ore.).

The invoice would broaden the CTC to $2,000 by 2025, grant mother and father and particular person credit score per baby, and make it absolutely refundable to taxpayers. The Home handed the invoice by a big bipartisan majority in early 2024, although the Senate didn’t advance it over Republican objections.

Republicans have opposed provisions within the deal that may allow unlawful immigrant mother and father of natural-born U.S. citizen kids to assert the credit score. Additionally they have objected to a “lookback” provision that may permit unemployed mother and father to assert a credit score primarily based on a previous yr’s earnings, which they stated would disincentivize them from searching for employment.

Although Wyden agreed to take away that provision, GOP opposition persevered, which led some Democrats to accuse the occasion of thwarting the invoice so President Joe Biden couldn’t declare credit score for signing it throughout the 2024 election.

Immigration and Border Safety

The principal theme of Trump’s 2024 presidential marketing campaign, aside from maybe the economic system, was border safety. Throughout the Biden administration, over 7 million international nationals illegally crossed the U.S. border with Mexico. Trump, in response, promised to launch the “largest deportation operation in American historical past” and reform asylum legal guidelines that allow unlawful immigrants to stay within the nation whereas their asylum claims are being processed.

Some border safety initiatives, equivalent to forcing asylum seekers to stay in Mexico whereas their claims are processed, is not going to require laws. Nonetheless, the funding for mass deportations in addition to modifications to the asylum course of would require Congress to move new spending and administrative legal guidelines.

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Most importantly, Trump’s longstanding want to assemble a wall alongside the size of the southern border would require Congress to approve the funds.

Payments associated to spending could possibly be handed with out the 60-vote cloture requirement within the Senate utilizing a course of generally known as finances reconciliation. Nonetheless, modifications to immigration and asylum legal guidelines will seemingly be deemed improper in such a invoice by the Senate Parliamentarian, whose rulings have typically constrained Democrats and Republicans previously.

Theoretically, the Senate may vote to alter its guidelines of process and both broaden reconciliation or constrain cloture by a easy majority, thus overcoming this limitation. Nonetheless, occasion leaders — notably, former Senate Republican Chief Mitch McConnell — beforehand have opposed doing so.

The Debt Restrict

The U.S. Authorities’s fiscal stability will depend on borrowing new cash to service spending in addition to repay current money owed. By legislation, the federal authorities’s debt nominally can not exceed $14.29 trillion, although repeated extensions have led the precise sovereign debt to balloon to $36 trillion at current. The final such measure, which suspended the debt restrict till Jan. 1, 2025, was the Fiscal Accountability Act (FRA) of 2023.

Regardless of its expiration, the U.S. authorities is not going to instantly default on its debt and spending obligations on Jan. 1. Non permanent measures allowed by statute, in addition to forex reserves, will allow the Treasury to fulfill obligations for a number of months. Nonetheless, Congress might want to act within the first few months of 2025 to stop a default, whose results on the worldwide economic system could possibly be extremely unfavourable, given the U.S. greenback’s standing because the world reserve forex.

Elevating the debt restrict has all the time been uncomfortable for fiscal conservatives, who search to restrict spending and indebtedness. Their opposition in 2023 led to protracted negotiations between McCarthy and Biden on the compromise FRA invoice, which handed 314-117, drawing “nays” from 71 Home Republicans, together with 46 Democrats.
Trump not too long ago tried to incorporate one other suspension of the debt restrict within the current Persevering with Decision handed by Congress to keep away from a authorities shutdown on Dec. 20.

That effort failed after many Republicans, in addition to Democrats, objected.

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