FEB_25_Sweetpotato Speak

The new administration began with variety of Executive Orders on Day one and have continued to issue these directives reversing course and changing policy with the past administration actions. Several top priorities are on the agenda over the next several months by the Trump administration and the GOP controlled US House of Representatives and US Senate. FY25 Spending: Federal funding for FY25 fiscal year ends on March 14, 2025, after the previousCongress passed a Continuing Resolution (CR) from December to March 14, 2025. Recently top four committee chairs from House and Senate Appropriations met to discuss topline spending, which will give guidelines for each body to consider for funding the government through September 30, 2025 or passing another Continuing Resolution. The main focus currently with Congress and Administration is focusing on the taxes, immigration and energy policy changes that President Trump wants enacted into law. In addition, the debt ceiling and disaster relief for the California wildfires will be part of any agreement likely within the next 45-60 days. Congressional Republicans will attempt to tackle the three legislative priorities of tax, immigration and energy in a “reconciliation” process that limits some measures to be included but allows passage with a simple majority vote, instead of the 60 vote threshold to precede to a legislation in the US Senate.

However, fiscal hawks in Congress prefer having this measure to reign in federal government spending. This issue could possibly be included in legislation with disaster relief for the California wildfires. Tariffs: President Trump announced on Day one, 25% tariffs on Mexico and Canada and an additional 10% tariff on China, effective early February. The proposed tariffs have cause concern from many in Congress on both sides. Once all the Secretaries are confirmed, there will be further discussion on the impact of these tariffs on rural America. Farm Bill: The Republican lead Congress has indicated they would like to have a Farm Bill by the September 30, 2025 deadline. Expect some further hearings prior to the US House and US Senate introducing a Farm Bill in the second quarter of this year. Trump Administration nominees for Cabinet

For the process to begin, each body will have to pass a budget resolution to be able to proceed to the underlying reconciliation process.This task will be very complicated with certain factions the GOP majority having different priorities of what should be included. For example, GOP members representing urban areas want the SALT (State, Area, Local Tax) provisions to be adjusted from the 2017 Tax Cuts Jobs Act (TCJT). This issue alone would cost more and could be a deal breaker if the small GOP members supporting this do not get an increase. Debt Ceiling: The Treasury is not expected to hit the debt ceiling until sometime early this summer.President Trump has made it clear he wants Congress to extend or remove the debt ceiling provisions so that future Congress will not have to have this issue on the table every two years.

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