The Trump administration has set a new target date of July 4 for Congress to pass a sweeping package of tax cuts, spending reforms, and immigration changes, Treasury Secretary Scott Bessent announced Monday, according to The Hill.
Bessent and National Economic Council Director Kevin Hassett met with top Republican leaders, including House Speaker Mike Johnson, R-La., and Senate Majority Leader John Thune, R-S.D., as lawmakers returned to Washington to begin negotiations.
"The House is moving things along quickly, and the Senate is in lockstep. We think that they are in substantial agreement," Bessent said. "We hope we can have this tax portion done by the Fourth of July."
The package under discussion would encompass a wide range of Republican priorities, including making the 2017 tax cuts permanent and eliminating federal taxes on tips, overtime, and Social Security benefits. It would also include immigration reform, Pentagon funding, a debt ceiling increase, and spending reductions.
Republicans initially sought to pass the package by Memorial Day. Johnson said on Monday that he still plans to move the bill through the House by then, although many Senate Republicans view that goal as optimistic.
The July 4 target arrives as the Treasury Department prepares to update its projection for the so-called X date when the United States would run out of money to pay its obligations without raising the debt limit. The upcoming X date is critical because the tax package is expected to include at least a $4 trillion debt ceiling hike.
"We don't have a new X date yet," Bessent said, noting that federal revenues are trending higher than expected after April's tax collections. "We may have a better calculation toward the end of the week or next week."
Even if the X date falls before the new July 4 deadline, Bessent said the administration will act to prevent a debt default.
"The U.S. will never miss the X date," he said.