Treasury Secretary Scott Bessent testified before the House Ways and Means Committee on June 11 in a highly partisan hearing focusing on OBBB tax cut distribution, IRS capabilities in light of Trump staff and budget cuts, budget deficits and trade policy. The hearing was called to discuss the Department’s “priorities”. Secretary Bessent testified that the IRS collected higher than expected receipts in April’s tax filings.

Prospects: It is possible that the higher receipts could push out Treasury’s X date for when the debt ceiling needs attention from mid-August to sometime in September. June tax receipts may also affect the X date.

Unlike President Trump’s first Treasury Secretary, Steve Mnuchin, it was clear from this hearing that Secretary Bessent has not developed the working relationship with the Democrats on the Committee that Secretary Mnuchin had, especially with Ranking Member Neal. In a reconciliation context, that may not matter much, but it does not bode well for bipartisan cooperation on future non-reconciliation tax and trade legislation, given the close voting margins in the House and Senate.

NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org