House Advances OBBB Amid Tensions

The seesaw that is the One Big Beautiful Bill continues as the House Budget Committee voted late last night to advance the bill to the Rules Committee by a 17-16 vote.

One might think this is a big win for Speaker Johnson, but in reality, the negotiations he had with four budget committee deficit hawks, which led to changes in the bill that will further exasperate moderates, only resulted in the four holdouts voting present, not in favor of the bill. They continue to voice their discontent with the bill, but have now caused their more moderate colleagues to question their support.

And all of this occurred without a final resolution to the state and local tax cap (SALT), a negotiation the Speaker is still engaged in with blue state Republicans. Any solution to the SALT issue that appeases these Members will likely cause the deficit hawks to once again rebel against the package. The Rules Committee is scheduled to bring up the OBBB on Wednesday, and pending that vote, the bill could be on the floor of the House by Friday. The Speaker has threatened to keep the House in session over the Memorial Day recess if the bill is not approved.

Thus far, we are unaware of any discussions or changes to the LIHTC provisions in the tax bill, and we continue to monitor this closely.

Stay tuned for our next update.