Department of Health & Human Services, Congressional Budget Office, and the Texas Clean Energy Industry

Probity Tax Recovery is a tax consulting firm specializing in tax credits and incentives for small to mid-sized businesses. We work with business owners and their CPAs to identify tax credits and incentives while saving them time and money. As of November 1, 2024, Probity began operating as a division of MS Consultants. Read more about the exciting news here. 

Tax Policy/News:

March 27: Senate braces for high-stakes ruling that will decide the fate of Trump's tax cuts 

Senators are expecting a decision next week from the parliamentarian that will determine if Republicans can use a novel accounting method to make President Donald Trump’s expiring tax cuts permanent. Senate budget rules require Republicans to pay for the cost of tax cuts to extend them permanently.  

 The Congressional Budget Office has estimated the cost of extending the tax cuts at $4.6 trillion over a decade. Republicans are pushing to use the “current policy” baseline, which sets the cost at $0, allowing them to extend the tax cuts without paying for them.  

 Democrats argue that this change would violate the 1974 budget law. If Republicans lose the argument, they may need to give up the goal of making Trump’s tax cuts permanent or overturn the parliamentarian’s ruling with a majority vote. Senate Budget Committee Chair Lindsey Graham and other Republicans are optimistic about the outcome.  

 Democrats warn that using the proposed new rule would set a precedent and change the Senate for a long time. The decision will inform what happens on the Senate floor. 

 March 25: Trump nominates Republican once accused of mishandling taxpayer funds as HHS watchdog 

President Donald Trump has nominated Thomas March Bell, a Republican attorney with a controversial history, to lead the Department of Health and Human Services’ Office of Inspector General. Bell, currently serving as general counsel for House Republicans, has a long history of working for GOP politicians and congressional offices.  

 His nomination is seen as a political move for a role traditionally viewed as nonpartisan. Bell was previously terminated from Virginia’s Department of Environmental Quality in 1997 after a state audit revealed he improperly authorized a nearly $8,000 payment to the agency’s former spokesman. He also led the 2016 House Republicans’ investigation into Planned Parenthood’s use of fetal tissue for medical research.

During Trump’s first term, Bell’s role at the HHS Office of Civil Rights faced criticism from Democrats. Trump’s nomination of Bell comes after he ousted a dozen government watchdogs at the start of his second term, including the HHS inspector general. Bell referred requests for comment to the White House, which did not immediately respond.  

 The HHS inspector general is responsible for investigating hospitals and insurers and ensuring compliance with regulations, with the power to enforce stiff penalties. Inspector generals are typically viewed as independent from the agencies they oversee. 

 Economic News/Policy:

March 31: Trump faces crucial week on the economy 

President Donald Trump is entering a critical week for the economy amid concerns that his use of tariffs could stall growth and worsen inflation. On Wednesday, Trump’s administration will impose reciprocal tariffs on nations with duties on U.S. goods, which he has dubbed “Liberation Day.”  

 The March jobs report will also be released Friday, providing insight into the labor market following the firing of thousands of federal employees. While data on the labor market and wages have been positive, consumer sentiment has dropped to its lowest point since November 2022 due to fears of rising prices.  

 Economists warn that tariffs lead to higher prices for companies, which are often passed on to consumers. Trump has already imposed tariffs on steel, aluminum, Chinese goods, and imports from Canada and Mexico. He has threatened additional tariffs on pharmaceuticals, lumber, and semiconductors.  

 Treasury Secretary Scott Bessent argued that inflation is “under control,” but acknowledged prices are still too high for many Americans. Experts are concerned about the direction of the economy, with some warning of a potential stagflationary period. Trump won the 2024 election partly due to voters’ trust in his handling of the economy. The administration’s policies in the coming weeks will be crucial in determining the economic outlook. 

 March 26: Congress must act by August to prevent debt default, CBO warns 

The Congressional Budget Office (CBO) has warned that the federal government could default on its debt as soon as August without action from Congress.  

 The CBO's latest projection indicates that Congress must raise or suspend the debt ceiling by August or September, though the deadline could shift based on federal revenue and spending. If the federal government needs to borrow more money than projected, the Treasury Department's resources could be exhausted in late May or June. The debt limit, last suspended in 2023, caps how much money the Treasury can owe.  

 The Treasury has been using extraordinary measures to buy time for Congress and the White House to address the debt ceiling. The Bipartisan Policy Center forecasted the X-Date could fall between July and October, with increased risk in early June if tax revenue is lower than expected.  

 Recent reports suggest a drop in revenue this year due to the Trump administration's efforts to shrink the federal workforce. Congressional Republicans hope to use budget reconciliation to increase the debt ceiling without Democratic support, but some acknowledge it might not make the final cut. Democrats warn that their help in raising the debt ceiling could come at a cost. 

 March 26: Treasury planning to lay off ‘substantial number’ of employees 

Treasury Department officials announced plans to lay off a significant number of employees, following President Trump’s February executive order to reduce the federal workforce.  

 Trevor Norris, chief human capital officer for the Treasury, stated that the layoffs would be tailored for each bureau and would disproportionately affect reinstated probationary employees due to seniority-based reductions in force (RIFs).  

 Despite a temporary order to reinstate approximately 6,000 U.S. Department of Agriculture probationary workers, these individuals are likely to be targeted in the next round of layoffs. The Treasury Department, overseeing over 100,000 employees, has not specified the exact number of layoffs.  

 Other federal agencies, including the Department of Veterans Affairs and the Social Security Administration, have also indicated plans to reduce staff in compliance with Trump’s executive order. The Hill reached out to the Treasury Department for comment but did not receive an immediate response. 

Energy and Environmental Policy/News:

March 28: Will Texas self-destruct its clean energy industry? 

Texas has been a leader in solar and storage development due to its competitive energy market. However, a new bill that recently passed the state Senate could jeopardize this progress.  

 The legislation would require 50% of new power plant capacity to be sourced from dispatchable generation other than battery energy storage, penalizing solar and wind power. This move could slow renewable deployment and pose reliability challenges for the state, which has relied on solar and batteries to avoid weather-related outages.  

 Developers are hesitant to build gas plants due to the time and cost involved, and a previous $5 billion fund for gas power plants saw limited success. With increasing energy demand from data centers, cryptocurrency mining, and new manufacturing, Texas needs more clean power, not less. The bill's impact on the state's clean energy industry remains to be seen. 

 March 28: Trump administration cancels clean energy grants as it prioritizes fossil fuels 

President Donald Trump’s administration is terminating grants for two clean energy projects and placing roughly 300 others funded by the Department of Energy (DOE) in jeopardy as it prioritizes fossil fuels.  

 The DOE is canceling two awards to the nonprofit clean energy think tank RMI in Colorado, including $5.3 million for retrofitting low-income multifamily buildings and $1.5 million for assessing business models for electric vehicle carsharing. The department determined these awards do not meet the administration’s objectives. President Trump declared an energy emergency early in his term and is working to speed up fossil fuel development.  

 The DOE is reviewing about 300 clean energy projects, including wind, solar, battery storage, and electric vehicle infrastructure. Separately, the Environmental Protection Agency terminated $20 billion in grants for clean energy projects, though a federal judge has temporarily blocked this action. U.S. Rep. Marcy Kaptur criticized the halting of clean energy projects, warning it will increase energy costs for families and businesses.  

 RMI spokeswoman Dina Cappiello confirmed the termination of the EV carsharing project and anticipated the retrofitting project would finish in June. The DOE stated it acted in the best interest of the American people by terminating the grants. Installation of renewable energy worldwide hit a record high last year, with China leading the way. 

 March 27: Dozens of House Democrats push back on planned EPA research and development cuts 

Dozens of House Democrats, led by Rep. Greg Landsman (D-Ohio), have expressed concern over proposed cuts to the Environmental Protection Agency’s (EPA) Office of Research and Development (ORD).  

 In a letter to EPA Administrator Lee Zeldin, they warned that eliminating up to 75 percent of ORD employees would severely impact the agency’s scientific research capabilities. The letter, signed by over 60 House Democrats, emphasized the importance of ORD’s independent and objective research in informing EPA assessments and decision-making.  

 The EPA is considering cutting its science arm, potentially reducing 50 to 70 percent of the 1,540 staffers in the office. Landsman highlighted the detrimental effects of these cuts on the EPA’s ability to address industrial pollution, contaminated air and water, environmental health, and natural disasters.  

 The EPA has stated that no decisions have been made yet and that they are gathering ideas to improve efficiency and fulfill statutory obligations. The agency is reviewing the letter and will respond through appropriate channels. 

Technology:

March 25: America improved its infrastructure in the last 4 years – but not by much 

In the past four years, America’s infrastructure has improved slightly, according to a report card released by the American Society of Civil Engineers (ASCE). The United States received an overall grade of C, up from a C- in 2021.  

 The ASCE examined 18 categories, including aviation, bridges, drinking water, public parks, solid waste management, and wastewater treatment. Ports received the highest grade of B, while stormwater utilities and public transit received the lowest grade of D.  

 The improvements were credited to the $1.2 trillion Infrastructure Investment and Jobs Act passed in 2021, which allocates $550 billion over five years to various systems. Despite these improvements, the United States still faces a substantial investment gap, with poor infrastructure costing American households $2,700 a year. The report noted that projects should be modernized or replaced to withstand extreme weather.

Broadband was added to the 2025 report, and eight categories improved their ratings over the last four years. However, energy and rail grades dipped due to concerns related to capacity, future needs, and safety. An estimated $9.1 trillion is needed to ensure all 18 categories reach a state of good repair, leaving a $3.7 trillion gap in funding. Roads, energy, and schools require the most funding.  

  For Fun:

March 25: Largest fully preserved dinosaur claw unearthed in Mongolia’s Gobi Desert 

Paleontologists have unearthed the remains of a previously unknown dinosaur species, Duonychus tsogtbaatari, in Mongolia’s Gobi Desert.  

 The discovery is unique because one of the claws was found with its keratinous sheath intact, revealing that the claw itself was much longer than the underlying bones.  

 This is the largest claw of its kind found fully preserved in this way. Duonychus tsogtbaatari, part of the therizinosaur group, stood about 10 feet tall and weighed 573 pounds. It likely used its curved claws to reach vegetation and grasp branches. The fossil also included parts of the dinosaur’s backbone, tail, hips, arms, and legs. 

 The two-fingered hands may have been used for display or as weapons for defense. The claws are compared to those of a sloth, used for hanging onto tree branches. The discovery is significant as it provides insight into the unique features and behavior of therizinosaurs. 

 

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