June 29, 2025
Senate Republicans are poised to implement a contentious accounting strategy to neutralize much of the cost associated with their expansive domestic policy legislation. This decision came to a climax on the Senate floor late Sunday when Democrats, led by Minority Leader Chuck Schumer, attempted to block what they termed a "budgetary gimmick" involving the adjustment of the policy baseline used in cost assessment.
The GOP's tactic allows them to largely disregard the $3.8 trillion required to continue the tax cuts initiated in 2017, which are due to expire by year's end. This move has profound implications on the financial estimates associated with the bill. According to two recent Congressional Budget Office (CBO) reports, one calculated with the current policy baseline indicates a $508 billion deficit reduction, while another using traditional methods forecasts a $3.25 trillion increase in the deficit.
Senator Schumer has vehemently criticized the maneuver, accusing the Republicans of setting a dangerous new precedent that sidesteps established legislative process and norms. He stated, "This kind of procedural sidestep not only undermines the integrity of our legislative process but sets a concerning precedent for future fiscal policy."
Despite the controversy, Senate Majority Leader John Thune and Senate Budget Chair Lindsey Graham are confident in their party's support. They have strategically avoided a direct confrontation with Parliamentarian Elizabeth MacDonough by asserting that under the 1974 law governing the budget process, it is within Graham’s jurisdiction to determine the baseline.
Graham’s spokesperson, Taylor Reidy, emphasized, "There is nothing to debate and we consider this matter settled." This sentiment was echoed by Graham who justified his decision based on the CBO’s deficit reduction report, underscoring his authority to change the accounting baseline: "Using current policy, tax cuts need not expire."
Democrats, however, remain incensed by the Republicans' approach. Senator Patty Murray expressed her dismay on the Senate floor, "Things have never, never worked this way where one party so egregiously ignores precedent, process, and the parliamentarian."
Adding to the Democratic outcry, Senator Ron Wyden criticized the Republicans' fiscal strategy as "budget math as fake as Donald Trump’s tan," and likened it to a "nuclear" option that could potentially destabilize longstanding Senate procedures, including the 60-vote filibuster rule.
The full Senate is expected to vote on Schumer’s objections soon, with significant implications for fiscal policy and legislative norms at stake. As the situation unfolds, the debate over this budgetary approach continues to underscore the deep partisan divisions within the U.S. Senate.