On Feb. 25, 2025, the U.S. House of Representatives narrowly passed H. Con. Res. 14, the Republican budget resolution, with a 217-215 vote. The resolution directs congressional committees to identify significant reductions in spending to account for the extension of tax cuts in the ABC-supported Tax Cuts and Jobs Act, other tax relief measures and energy and national security provisions. The House resolution also included several ABC-supported nonbinding policy statements.  

ABC supported the resolution ahead of the vote, saying: “Associated Builders and Contractors appreciates Chairman Arrington and House leadership for their efforts on the Budget Resolution. This legislation is a crucial first step toward extending key tax provisions. Provisions to make permanent the Section 199A deduction, lower rates on business income, higher estate tax thresholds and increased deductions for business equipment and R&E are critical to the continued success of our members. All these provisions have either expired or are slated to sunset at the end of the year. Without the extension of these provisions, small construction firms will face a significant financial burden, paying higher taxes on a larger share of their earnings starting next year. ABC strongly urges Congress to take action and prevent small businesses from being hit with a devastating tax increase.” 

The House budget resolution's passage initiates the reconciliation process, which enables Republicans to advance their fiscal agenda without the threat of a filibuster in the U.S. Senate. Meanwhile, the Senate is expected to consider its distinctly different committee-passed budget resolution in the coming weeks.  

If the Senate approves its own resolution, both chambers would need to reconcile differences through a conference committee, producing a final resolution that, if passed, would unlock the budget reconciliation process. With Democrats all but certain to oppose the resolution unanimously, Republicans will need near-total unity to pass it with a simple majority.