US Senate Finance Committee Chairman Mike Crapo of Idaho this week released the legislative text under the committee’s jurisdiction for inclusion in Senate Republicans’ sweeping budget reconciliation bill. The proposed legislation is to make permanent the economic framework of former President Donald Trump’s 2017 tax law while rolling back spending priorities from the Biden era.
The bill is designed to permanently extend provisions from the 2017 Tax Cuts and Jobs Act, which are set to expire after 2025. Senate Republicans say the legislation would prevent what they describe as an impending $4 trillion tax increase and would offer new relief to middle-class families, whom they argue are still facing the effects of high inflation under the Biden administration.
“This bill prevents an over-$4 trillion tax hike and makes the successful 2017 Trump tax cuts permanent, enabling families and businesses to save and plan for the future,” Crapo said in a statement announcing the legislative release.
The bill includes additional tax benefits for families and businesses, while proposing long-term certainty for small and large companies through pro-growth tax incentives. It also introduces new measures designed to encourage domestic investment.
According to the Finance Committee’s summary, the legislation seeks cost savings by eliminating what Republicans call “Green New Deal” spending and by addressing fraud and inefficiencies in existing federal programs. GOP lawmakers say these steps will protect programs for the most vulnerable while reining in excessive government expenditures.
The proposal aligns closely with former President Trump’s current economic vision, which includes broad tax cuts, deregulation, and a shift away from environmental spending initiatives that gained traction during the Biden administration.
“I look forward to continued coordination with our colleagues in the House and the Administration to deliver President Trump’s bold economic agenda for the American people as quickly as possible,” Crapo said.
The bill’s release is another step in the budget reconciliation process, a legislative pathway that allows Senate Republicans to advance tax and spending policy with a simple majority vote, bypassing the 60-vote threshold typically required in the Senate.