Trump and Johnson push "One Big, Beautiful Bill" toward Memorial Day deadline. President Donald Trump met with Speaker Mike Johnson (R-LA) Monday afternoon to kick off what promises to be a frenetic few weeks on Capitol Hill. As reported by Roll Call, multiple House committees start work this week on their portions of a sweeping budget reconciliation bill aimed at advancing Trump's immigration, economic, and tax policy goals. Trump urged House Republicans to stay in Washington rather than attend his Michigan rally today, stressing the urgency of the legislative push. Speaker Johnson aims for the House to pass a bill by Memorial Day.
Republicans wrestle with spending cuts to fund tax extensions. House Republicans are trying to navigate internal divisions over how to fund the extension of the Tax Cuts and Jobs Act, reports Reuters. More conservative House Republicans want the package to include at least $1.5 trillion in spending reductions over the next decade, but moderate GOP members are wary of significant cuts to Medcaid and other large saftey net programs. Some proposals under consideration include work requirements for some Medicaid beneficiaries and rollbacks of green energy tax credits. Meanwhile, Democrats, led by House Minority Leader Hakeem Jeffries (D-NY), staged a sit-in protesting proposed Medicaid cuts.
Judge halts executive order limiting Treasury union bargaining rights. A federal district court has issued a preliminary injunction blocking President Trump's executive order that sought to curtail collective bargaining rights for National Treasury Employees Union (NTEU) members. As detailed in Tax Notes(paywall), Judge Paul Friedman ruled that the administration’s move to end bargaining obligations at agencies like the IRS and Treasury violated federal law. A full opinion is expected soon.
Vanguard to pay $106 million over disclosure failures linked to target date funds. All 50 states, the US Virgin Islands, Puerto Rico and Guam, have reached a $106 million settlement with Vanguard Marketing Corp. and The Vanguard Group, Inc., over inadequate investor disclosures tied to changes in target retirement fund minimums. The California Department of Financial Protection and Innovation announced the settlement (here), which resolves allegations that Vanguard's actions led to unexpected capital gains taxes for hundreds of thousands of investors. Impacted investors will receive remediation payments overseen by the Security and Exchange Commission’s (SEC's) Fair Fund program.
No grocery tax relief yet for Nashville. Nashville residents hoping for a break on grocery taxes will have to wait. Mayor Freddie O'Connell (D) announced that the 2026 city budget will not include changes to the grocery tax, citing limitations under current Tennessee law. The Tennessean reports that while other municipalities can lower local food sales taxes, consolidated governments like Nashville cannot. O'Connell plans to push for a legislative fix next year.
Brazil looks to boost data center investment with tax breaks. Brazil's Finance Minister Fernando Haddad is heading to Silicon Valley to pitch major tax incentives aimed at attracting data center investments. According to Reuters, the proposed plan would exempt IT-related capital expenditures from federal taxes, potentially unlocking $352 billion in investments over the next decade. To qualify, projects must use 100 percent renewable energy and reserve capacity for domestic use.
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