More Provisions Violate Byrd Rule in Republicans’ “One Big, Beautiful Bill”

WASHINGTON, D.C. – The Senate Parliamentarian again advised that several provisions in the Republicans’ “One Big, Beautiful Bill,” would be subject to a 60-vote threshold if they remain in the bill. The below provisions are under the Finance Committee’s jurisdiction.

“We have been successful in removing parts of this bill that hurt families and workers, but the process is not over, and Democrats are continuing to make the case against every provision in this Big, Beautiful Betrayal of a bill that violates Senate rules,” said Ranking Member Jeff Merkley. “Republicans are actively attempting to rewrite major sections of this bill to advance their families lose, and billionaires win agenda, but Democrats are scrutinizing all changes to ensure the rules of reconciliation are enforced. We cannot let Republicans succeed in betraying middle-class families across this country.”

Senate Democrats made Byrd Rule challenges to the provisions below based on the Joint Committee on Taxation’s current law estimate of the Finance title. The Republican proposal to use a current policy baseline to enforce the Byrd Rule is an unprecedented abuse of section 312 of the Congressional Budget Act and has not been resolved by the Parliamentarian.

Provisions Subject to a 60-Vote Byrd Rule Point of Order

Finance

Private school vouchers. This section creates a new, unprecedented federal subsidy for private and religious schools. (Section 70411)

Religious college carve-out from the endowments tax. This section exempts a very small number of religious schools, including Hillsdale College, from an income tax on college endowments. (Section 70415(c)(1)(C)(ii) and 70415(c)(1)(D))

Deregulation of gun silencers and easily concealable guns. This section removes the regulations pertaining to gun silencers and easily concealable firearms under the National Firearms Act. (Section 70436)

Mandatory pre-certification for Earned Income Tax Credit (EITC) claimants. This section adds an unprecedented pre-certification process to EITC eligibility, requiring otherwise eligible EITC claimants to obtain a certification that their child is eligible before claiming the credit. (Section 70613(a))

Increasing penalties for disclosures of taxpayer information. This section increases the maximum fine for illegal disclosures of taxpayer information from $5,000 to $250,000 and increases the maximum term of imprisonment from 5 years to 10 years. (Section 70615)

Still Under Review

Trump accounts. This section creates a new tax-advantaged savings account for a subset of children dubbed “Trump accounts.” (Section 70204)

Making the Opportunity Zones program permanent. This section makes permanent a program that allows certain taxpayers who invest in qualified “opportunity zones” to receive tax benefits. (Section 70421(e))

Tax on third-party litigation funders. Aimed at advocacy groups, this section imposes a tax on the gross proceeds of third-party litigation financiers without allowing deductions or accounting for losses. (Section 70605)

Social Security Number requirement. These sections impose new requirements on taxpayers claiming the child tax credit, the EITC, the American opportunity credit, the lifetime learning credit, the new exemption for seniors, the deduction of tipped income, the deduction for overtime income, and the new Trump accounts. (Sections 70103, 70104, 70119, 70201, 70202, 70204, and 70614)

Foreign entity of concern restrictions on clean electricity production credit. This section prohibits projects that are owned by or receive material assistance from specified foreign entities and foreign-influenced entities from qualifying for the 45Y clean electricity production credit. (Section 70512(c))

The Parliamentarian’s advice is based on whether a provision is appropriate for reconciliation and conforms to the limitations of the Byrd Rule; it is not a judgement on the relative merits of a particular policy.

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