On September 20, the House Budget Committee, by a party-line 20 to 14 vote, approved a fiscal year (FY) 2024 budget that balances the federal budget within ten years, and calls for a commission to deal with entitlements. It also provides for permanence and/or extension of the Tax Cuts and Jobs Act (TCJA) individual and estate tax rules. Generally, these TCJA tax cuts expire in 2026.

The Budget Committee proposal, offered by the committee’s chairman, Rep. Jodey Arrington (R-TX), contains no new tax increases. Further, the proposed FY 2024 budget would create a commission to produce legislation to restore long-term solvency to Social Security and Medicare along with steep spending cuts.

Overall, the Arrington budget would, as projected, reduce the federal deficit by $16 trillion over ten years while eliminating the federal deficit, also in that time frame.

Prospects: There is virtually no chance that Congress will enact this FY 2024 budget proposal. It has no support among Democrats, and Democrats control the Senate. Plus, the House is currently stymied by the vacancy in the office of Speaker of the House, and unless House Republicans coalesce around one candidate for Speaker very quickly, it is likely that nothing will be able to be accomplished beyond finding a way to fund the government past the current November 17 deadline.

NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org; or Michael Hedge – Senior Director – Government Relations, at mhedge@naifa.org.