Policy Backgrounders

House and Senate Budget Resolutions: The Challenge Ahead

February 20, 2025

The House of Representatives and the Senate have each passed competing budget resolutions out of each chamber’s Budget Committees to set spending goals for the year. Their differing approaches must be resolved before Republicans in Congress can proceed with crafting legislation to advance the President’s border security, tax, and national defense priorities.

• The House and Senate must agree on a budget resolution to continue the budget reconciliation process that would allow Congressional Republicans to pass the President’s legislative agenda without negotiating with Senate Democrats.
• The Senate has adopted a two-bill approach, with a first bill focusing on border security and defense to provide the President with a quick legislative win followed by a second bill centered on extensions of tax cuts and possible further cuts later this year.
• The House has pursued a one-bill approach combining all the President’s legislative priorities, with the goal of reducing the chances that tax legislation will fail to pass.
• Amid this work on the budget resolution, Congress also faces a March 14 deadline to pass the 12 appropriations bills funding the Federal government for fiscal year (FY) 2025 or risk a government shutdown.