Congressional Republicans Push Reconciliation Bill
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House Republicans recently took a major step in their quest to approve as early as this month a comprehensive tax and budget measure supported by the Trump White House.
The on April 30 approved a procedural reconciliation bill meant to inform the chamber’s larger budget legislation this month. As part of the committee-passed measure, lawmakers approved a new annual fee for drivers of electric vehicles.
Specifically, the panel gave partisan backing to an electric vehicle fee of $250 as well as a $100 fee for hybrid vehicles. The move was described as an effort to boost the federal Highway Trust Fund, an account projected to be insolvent in the coming years. The committee explained the new fees, if enacted, would “ensure they pay for their use of the nation’s roads and bridges.”
“Together,” according to background information the panel provided, “these new user fees are expected to increase federal revenues by a conservative estimate of more than $38 billion over 10 years, all of which will be deposited into the [Highway Trust Fund].”
Graves touted investments in the Coast Guard and in modernizing the nation's air traffic control system. (Al Drago/Bloomberg News)
“The committee took decisive action in support of the president’s ‘America First’ agenda,” Committee Chairman said April 30. “We approved historic investments in the United States Coast Guard to strengthen our national and border security, and we took equally important strides towards finally modernizing the nation’s outdated air traffic control system.”
Coast Guard, Air Traffic Control Systems
Referring to progressive Democrats’ environmental policy proposal, Graves continued, “We more than covered these critical provisions by cutting wasteful Green New Deal spending, ensuring that electric vehicles begin contributing to the Highway Trust Fund.”
The budget bill also approves funds for the U.S. Coast Guard, the Federal Aviation Administration’s air traffic control system, and would rescind certain environmental programs created in the Biden-era Inflation Reduction Act climate change law.
Overall, the panel’s budget legislation is expected to pave the way for a reduction of more than $10 billion as part of congressional Republicans’ reconciliation. The procedural strategy requires simple majorities for passage in the House and Senate.
Larsen decried the budget, saying it "cuts this committee off at the knees.." (Rep. Rick Larsen via YouTube)
Democrats largely opposed the budget measure. Rep. Rick Larsen (D-Wash.), the panel’s ranking member, called its consideration a “departure from the regular, bipartisan work.”
Larsen Voices Opposition
“Everyone on this committee agrees we need to support the Coast Guard, improve our air traffic control system and keep surface transportation investments going. Unfortunately, the Republicans’ reckless budget cuts this committee off at the knees as we look to continue historic funding for transportation, water infrastructure, clean energy and stronger, healthier communities,” Larsen emphasized.
Republican leaders intend to finalize their tax and budget reconciliation bill as early as this month. Several budget policymakers anticipate approval of the bill by July 4 is realistic. Domestic policy provisions likely to be included in the reconciliation process are border security, military readiness, the social safety net, domestic energy, supply chain connectivity and extending the Trump-era 2017 tax cuts.
"It will allow job creators, innovators and entrepreneurs to know that their tax rates are stabilized and permanent going forward," Johnson said of the proposed budget. (Al Drago/Bloomberg News)
Speaker Mike Johnson (R-La.) detailed the reconciliation’s state of play May 4 on Fox News: “We have four committees yet to go, and then we push it back through the budget committee to merge it all together and send it to the Senate.”
'Jet Fuel to the Economy'
Specific to the bill, the speaker said, “It will send stability out there to the markets, the bond markets and the stock market. It will allow job creators, innovators and entrepreneurs to know that their tax rates are stabilized and permanent going forward so they can plan accordingly.
‘It will be like jet fuel to the economy. And by the way, we will prevent the largest tax increase in U.S. history, which is what would happen by default at the end of this year. Failure is not an option here; we’ll get it done.”
Stakeholders, including , expressed support for the proposed boost to the Highway Trust Fund.
“ATA is grateful to members of the House [Transportation and Infrastructure] committee for listening to our feedback and advancing this proposal to ensure that all motorists who benefit from the use of America’s roadways contribute to their upkeep and improvement,” ATA Senior Vice President of Legislative Affairs Henry Hanscom said May 1.
Boosting the Highway Trust Fund
“The federal Highway Trust Fund,” Hanscom continued, “is on the verge of collapse due almost entirely to the growth in electric and hybrid passenger vehicles. No one should get a free ride. The committee is to be commended for taking a significant step toward meeting the goal for all vehicles to pay their fair share. The trucking industry looks forward to working with Congress to implement this common-sense solution.”
The trust fund is backed by insufficient revenue from the federal 18.4 cents-per-gallon tax on gas and 24.4 cents-per-gallon tax on diesel. Congress approved those rates in 1993.
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