An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034.
- Bill Number
- S.Con.Res. 7
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Economics and Public Finance
- Status
- Passed Senate
- Latest Action
- 2025-02-21: Resolution agreed to in Senate with amendments by Yea-Nay Vote. 52 - 48. Record Vote Number: 87. (text: CR S1119-1125)
- Last Updated
- 2026-06-10T08:07:28Z
AI-Generated Summary
Purpose of the Legislation
This concurrent resolution (S. Con. Res. 7) establishes the congressional budget framework for fiscal year (FY) 2025 and sets recommended budgetary levels for FY 2026 through 2034. It guides federal revenues, spending, deficits, and debt, while instructing congressional committees on potential legislative changes through the reconciliation process—a procedure that allows budget-related bills to pass with a simple majority, avoiding Senate filibusters.
Key Provisions
- Overall Budgetary Levels (Sec. 1101):
- Revenues: Projected to rise from $3.85 trillion in FY 2025 to $5.38 trillion in FY 2034, but with planned reductions compared to current policy baselines (e.g., -$5.9 billion in FY 2025, escalating to -$485 billion in FY 2034). No changes relative to current policy through FY 2034.
- New Budget Authority: Amounts Congress authorizes for spending, increasing from $4.66 trillion in FY 2025 to $6.68 trillion in FY 2034.
- Outlays (Spending): Actual expenditures, rising from $4.64 trillion in FY 2025 to $6.59 trillion in FY 2034.
- Deficits: Annual shortfalls between revenues and outlays, ranging from $783 billion in FY 2025 to a peak of $1.28 trillion in FY 2033.
- Public Debt and Debt Held by the Public: Total debt rises from $36.37 trillion in FY 2025 to $48.71 trillion in FY 2034; debt held by the public (excluding intragovernmental holdings) increases from $29.14 trillion to $41.75 trillion.
- Breakdown by Major Functional Categories (Sec. 1102):
- Allocates new budget authority and outlays across 20 categories, such as:
- National Defense (050): Increases from $933 billion (authority) / $910 billion (outlays) in FY 2025 to $1.09 trillion / $1.05 trillion in FY 2034.
- Health (550) and Medicare (570): Major growth areas, with combined outlays exceeding $1.9 trillion in FY 2025 and reaching over $2.97 trillion by FY 2034.
- Social Security (650): Outlays from $67 billion in FY 2025 to $133 billion in FY 2034 (administrative only; full program handled separately).
- Net Interest (900): Rises sharply from $1.01 trillion in FY 2025 to $1.47 trillion in FY 2034 due to debt accumulation.
- Declines or fluctuations in areas like Natural Resources and Environment (300) (outlays drop from $90 billion to $55 billion) and Energy (270) (significant reductions post-FY 2026).
- Includes adjustments like allowances (920) for scoring flexibility and offsetting receipts (950) for collections that reduce net costs.
- Senate-Specific Adjustments (Secs. 1201–1202):
- Details Social Security trust fund revenues (e.g., $1.30 trillion in FY 2025), outlays (e.g., $1.41 trillion), and administrative expenses ($6.4 billion authority).
- Sets Postal Service discretionary administrative expenses, starting at $268 million in FY 2025 and rising to $364 million in FY 2034.
- Reconciliation Instructions (Title II):
- Directs House and Senate committees to propose law changes by March 7, 2025, with deficit impacts:
- Reductions Required (at least $1 billion over FY 2025–2034): Agriculture, Education/Workforce (House), Energy/Commerce (House), Natural Resources (House), Energy/Natural Resources (Senate), Finance (Senate), Health/Education/Labor/Pensions (Senate).
- Deficit Increases Allowed: Armed Services (up to $150 billion both chambers), Homeland Security ($175 billion House/Senate), Judiciary ($175 billion both), Transportation/Infrastructure ($20 billion House), Commerce/Science/Transportation ($20 billion Senate), Environment/Public Works ($1 billion Senate increase).
- Budget committees will compile these into reconciliation bills without substantive changes in the Senate.
- Reserve Funds (Title III):
- Reconciliation Reserve (Sec. 3001): Allows budget adjustments for compliant reconciliation bills; waives certain enforcement rules.
- Deficit-Neutral Reserve (Sec. 3002): Permits adjustments for legislation that does not increase deficits over FY 2025–2034.
- Medicare/Medicaid Protection Reserve (Sec. 3003): Deficit-neutral fund for bills improving these programs or extending Medicare's trust fund life.
- Deregulation Reserve (Sec. 3004): Deficit-neutral fund for bills reducing federal regulations, cutting related spending, and reasserting congressional law-making authority.
- Enforcement and Adjustments (Title IV):
- Procedures for filing allocations if no conference report is needed (Sec. 4001).
- Includes Social Security and Postal Service administrative costs in appropriations allocations (Sec. 4002).
- Rules for applying changes, budget committee determinations, and adjustments for statutory spending caps, baseline updates, or concept changes (Secs. 4003–4006).
- Adopts provisions as congressional rules, subject to future changes (Sec. 4007).
Significant Changes to Existing Law
As a concurrent resolution, this does not amend statutes directly but updates the annual budget framework under the Congressional Budget Act of 1974 (which requires such resolutions to set spending targets). Key shifts include:
- Allowing targeted deficit increases (e.g., for defense and security) unlike some prior resolutions focused on reductions.
- Specific reconciliation directives that could lead to statutory changes in taxes, entitlements, or spending via fast-track bills.
- Adjustments to baselines and caps, potentially overriding prior limits from laws like the Budget Control Act of 2011 (expired caps) or Fiscal Responsibility Act of 2023.
- Enhanced flexibility for deficit-neutral measures on entitlements and deregulation, differing from stricter pay-as-you-go rules in past budgets.
Potential Impacts
- Government Agencies: Provides spending ceilings for discretionary programs (e.g., boosts defense Department of Defense funding; constrains Environmental Protection Agency via natural resources cuts). Reconciliation could mandate efficiency reforms or program trims.
- Citizens: Protects core entitlements like Social Security, Medicare, and Medicaid but signals possible tweaks (e.g., via reserves). Higher deficits may strain future budgets, affecting taxes or benefits; veterans and low-income groups see stable or growing support, while environmental and energy program users face potential reductions.
- International Relations: Increased defense and international affairs outlays (e.g., $934 billion defense in FY 2028) could enhance U.S. military aid and diplomacy, impacting alliances and global security.
Main Stakeholders Affected
- Congressional Committees: Budget, Appropriations, and instructed policy committees (e.g., Armed Services, Finance) must align proposals with targets.
- Federal Agencies and Programs: Defense, Health and Human Services (Medicare/Medicaid), Social Security Administration, Veterans Affairs benefit from or are constrained by allocations.
- Taxpayers and Businesses: Revenue reductions imply lower taxes or fewer collections; deregulation reserve could ease regulatory burdens on industries.
- Vulnerable Populations: Seniors, disabled individuals, low-income families (via health/income security), and veterans rely on protected or growing programs.
- General Public: Rising debt and interest costs (nearly 20% of outlays by FY 2034) could influence economic stability and future fiscal policy.
Notable Legal, Constitutional, or Political Implications
- Legal: Enforces the Congressional Budget Act by setting enforceable levels; reconciliation instructions enable passage of major bills (e.g., tax or health reforms) without 60 Senate votes, but must stay within deficit limits to avoid points of order.
- Constitutional: Reinforces Congress's Article I "power of the purse" by directing spending priorities and reserving law-making for deregulation, potentially challenging executive regulatory authority.
- Political: Highlights priorities like military strength and entitlement protection amid fiscal conservatism elsewhere; large deficits (totaling over $10 trillion over 10 years) may fuel debates on debt sustainability, with reconciliation as a tool for partisan agenda advancement. Neutral enforcement relies on budget chairs' determinations, risking procedural disputes.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-02-21: Resolution agreed to in Senate with amendments by Yea-Nay Vote. 52 - 48. Record Vote Number: 87. (text: CR S1119-1125) (Roll call 87)
- 2025-02-21: Passed/agreed to in Senate: Resolution agreed to in Senate with amendments by Yea-Nay Vote. 52 - 48. Record Vote Number: 87. (Roll call 87)
- 2025-02-20: Considered by Senate. (consideration: CR S1061-1063, S1075-1119)
- 2025-02-19: Considered by Senate. (consideration: CR S1015-1019)
- 2025-02-18: Measure laid before Senate by motion.
- 2025-02-18: Motion to proceed to consideration of measure agreed to in Senate by Yea-Nay Vote. 50 - 47. Record Vote Number: 58. (CR S1006) (Roll call 58)
- 2025-02-13: Placed on Senate Legislative Calendar under General Orders. Calendar No. 13.
- 2025-02-13: Committee on the Budget. Original measure reported to Senate by Senator Graham. Without written report.
- 2025-02-13: Committee on the Budget. Original measure reported to Senate by Senator Graham. Without written report.
- 2025-02-13: Introduced in Senate
Bill Versions
- Setting forth the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034. — issued 2025-02-21 — PDF (62 pages)
- Setting forth the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034. — issued 2025-02-13 — PDF (62 pages)