On April 10, 2025, the U.S. House of Representatives approved the Reverse the Curse Budget Blueprint, which outlines the Trump administration’s proposals on federal spending and priorities. Released by the U.S. House Budget Committee, the document covers fiscal years (FY) 2025 to 2034. Prior to the House passing the Budget Blueprint, the Senate adopted an amended version of an earlier House budget resolution on April 5, 2025. This article explores some of the key changes and reforms to federal funding and how your organization can stay informed. This will enable organizations to stay agile and pivot, if necessary, in case of potential disruptions.
Federal Budget Blueprint Overview
The blueprint aims to balance the federal budget within 10 years by reducing deficits by more than $16 trillion between FY 2024 and FY 2033.1 It caps discretionary spending at $1.606 trillion, with future growth limited to 1% per year through FY 2034. The plan reverts discretionary spending to levels set by the Limit, Save, Grow Act, signed into law on June 3, 2023, resulting in significant additional savings.2
The blueprint recommends repealing most of the Inflation Reduction Act climate and energy tax credits, which it considers costly and ineffective.3 It also suggests repealing recent expansions of federal student loan forgiveness and other higher education subsidies.4 The plan proposes reforms to Medicare and Medicaid to reduce fraud, abuse, and unnecessary spending, while maintaining benefits for seniors and vulnerable populations.5
According to the blueprint, “the budget promotes opportunity and temporary assistance, not cradle to grave dependence. We continue to build off the successes of the Fiscal Responsibility Act to strengthen the Temporary Assistance for Needy Families (TANF) program work requirements so states will engage more recipients in activities leading to self-sufficiency. We strengthen the work requirements for able-bodied adults in other welfare programs, such as the Supplemental Nutrition Assistance Program (SNAP) and public housing programs.”6
Further, the blueprint states that “by lowering taxes across the board, eliminating costly special-interest tax breaks, and modernizing our international tax system, the Tax Cuts and Jobs Act (TCJA) helped create more jobs, increase paychecks, and made the tax code simpler and fairer for Americans of all walks of life. It results in more jobs, higher wages, lower unemployment and poverty rates, and an overall improved standard of living for all Americans.”7
Moreover, the blueprint includes the following: “While our budget resets discretionary spending back to FY2022 levels, it does so with the flexibility to fund mission-essential areas such as national security, homeland security, and veterans’ services.” In addition, “our budget recognizes that border security is national security and provides the necessary resources to the U.S. Department of Homeland Security (DHS) to deter and prevent illegal immigration, secure the border, stop the deadly flow of drugs, and effectively control the entry and exit of permanent and temporary workers and other valid visa holders. To achieve this, our budget supports H.R.2, the Secure the Border Act of 2023.”8
Similarly, the blueprint suggests eliminating the following programs deemed unnecessary:
- Permanently eliminating regulations waived during the COVID-19 pandemic.
- Exempting small businesses from union regulations.
- Repealing “radical” mandates on auto manufacturers.
- Repeal the Consumer Financial Protection Bureau (CFPB) by zeroing out mandatory appropriations.
In addition, the blueprint proposes privatizing or moving certain federal responsibilities to states or the private sector. As per the guiding principles mentioned in the budget blueprint, the states are closer to the problem, more accountable to the people, and best equipped to provide the most innovative and cost-effective solutions.
In summary, most federal agencies, except for defense and veterans services, could face tighter budgets or cuts in the short term. Entitlement programs may undergo significant restructuring to control costs, and there will be stricter controls on emergency spending. For the long term, the plan envisions balancing the federal budget within 10 years, reducing the debt-to-gross domestic product (GDP) ratio from 131% to 88% by 2034. By restraining expenditure and encouraging investment, the blueprint envisions a more robust, dynamic U.S. economy.9
Next Steps in the Budget Approval Process
According to the Bipartisan Policy Center, the next steps in the budget approval process involve the following:
- 1. The reconciliation process is a special parliamentary process that allows major tax and spending legislation to quickly track and bypass the Senate’s 60-vote filibuster rule with a simple majority.
- 2. Relevant Committees in both the House and Senate chambers will begin marking up their portions of the reconciliation bill. This involves detailed discussions and revisions of the proposed legislation.
- 3. The marked-up bill from various committees will then be combined into a single reconciliation package. Each committee votes on its respective portions of the reconciliation bill.
- 4. The combined reconciliation package is then brought to the floor of both the House and Senate for a vote. It requires a simple majority to pass.
- 5. If there are differences between the House and Senate versions, a conference committee may be formed to reconcile these differences. Once passed, it is then sent to the president for signing into law.
The below dates are featured in the budget reconciliation, according to the Committee for a Responsible Federal Budget’s 2025 Reconciliation Tracker:
- Tuesday, April 29, 2025: Mark-ups by the Armed Services and Homeland Security Committees
- Wednesday, April 30, 2025: Mark-ups by the Judiciary and Financial Services Committees
- Monday, May 5, 2025: Mark-ups by the Energy and Commerce and Agriculture Committees
- Tuesday, May 6, 2025: Mark-ups by the Natural Resources Committee
- Friday, May 9, 2025: Congress returns after a two-week recess
Our team is monitoring the budget process and is available to assist impacted entities with funding questions and next steps. For further inquiries or assistance, please reach out to a professional at Forvis Mazars.
In addition, Forvis Mazars is hosting a three-part webinar series on the impact of grant funding freezes, strategies for navigating them, and how to prepare for the future. Gain insights to help your entity plan financially for potential disruptions and challenges in light of current funding freezes. Register today to secure your spot.
- Understanding the Impact of the Federal Freeze on Grant Funding – Thursday, May 8 • 1 p.m. ET
- Strategies for Navigating Funding Freezes – Tuesday, May 20 • 3 p.m. ET
- Preparing for Future Funding Challenges – Wednesday, May 28 • 1 p.m. ET