House Republicans release initial tax draft, full text expected imminently

The House Ways and Means Committee late Friday released a preliminary draft of the tax portion of their "big beautiful bill," with full text expected to be released as soon as Monday afternoon.

The 28-page document would make permanent 2017 Tax Cuts and Jobs Act provisions set to expire this year, including the increased alternative minimum tax, and lift the child tax credit. It does not include potential revenue offsets ? the issue most closely watched by the municipal bond market, which fears the tax exemption will be tapped to help cover the cost of the package.

The draft does not include any mention of the state and local tax deduction cap, which has emerged as a major sticking point. The so-called SALT Caucus, lawmakers from high-tax states who won't support the reconciliation bill without a meaningful increase in the cap, is expected to meet with House Republican leaders Monday morning.

The House Ways and Means Committee is scheduled to take up the tax bill at 2 p.m. Tuesday. The hearing will likely last hours as Democrats propose a slew of amendments.

Committee Chair Rep. Jason Smith, R-Mo., said in a statement Friday that the committee has "spent two years preparing for this moment."

"Pro-family, pro-worker tax provisions are the heart of President Trump's economic agenda," Smith said.

The initial tax portion released Friday would cost around $5 trillion, according to the Joint Committee on Taxation. That's more than the $4.5 trillion allowed under the budget resolution passed in April.

The Committee For a Responsible Federal Budget estimated the draft would add $5 trillion to "primary deficits" through 2034.

"The deficit impact of the bill is well above the Ways & Means allowable increase of $4 trillion to $4.5 trillion, so lawmakers will either need to make adjustments, include offsets, or both," the group said. "It is also 50% to 60% more expensive than extending the Tax Cuts and Jobs Act portions of the bill ? meaning it could add $1.5 to $2 trillion more to the deficits above current policy."

The House Energy and Commerce Committee will hold a Tuesday afternoon markup of its portion of the reconciliation bill. The committee released its text late Sunday.

Also on Friday, Treasury Secretary Scott Bessent sent a letter to House Speaker Mike Johnson, R-La., warning the nation would run out of money to pay its bills sometime in August, and asking Congress to lift the ceiling by mid-July before its summer break. The date helps set the timing for the reconciliation bill, which would raise the debt ceiling by $4 trillion.