Following the 2024 federal election, the Republican Party has secured the majority in the U.S. Senate with 53 seats. Democrats currently hold a narrow 51 – 49 majority and were defending 23 seats, while the Republicans were defending only 11 seats.
To gain control of the Senate as they did in 2018, the Republicans needed to flip at least two seats. After flipping four seats, including West Virginia, Ohio, Montana and Pennsylvania, they surpassed this measure. They will control 53 seats compared to the Democrats’ 47. This crucial number under the budget reconciliation process, which requires only a simple majority of 51 votes, is now in favor of Republicans, compared to a supermajority of 60.
The Role of Senate Committees and Their Key Members
Senate Finance Committee
Decisions made by members of the Senate’s Finance Committee, especially those in leadership positions, have a profound impact on economic outcomes for both individuals and corporations. They have a crucial role in the development of tax legislation and addressing matters related to Medicare, Social Security, healthcare and international trade.
With the Republicans in control of the Senate, Idaho’s Republican Senator Mike Crapo, who has been the Ranking Member of the Finance Committee since January 2021, is positioned to become the Chair of the Finance Committee. According to the committee’s website, increasing access to quality, affordable healthcare and promoting the country’s global competitiveness through free and fair trade are among several of Crapo’s top priorities, along with building upon the successes of the Tax Cuts and Jobs Act (TJCA) enacted in 2017.1
Senate Energy and Natural Resources Committee
With the Republicans gaining control of the Senate, they will now lead the Senate Energy and Natural Resources Committee. This committee oversees the Federal Energy Regulatory Commission (FERC), an agency that regulates the transmission of electricity, natural gas and oil across state lines, and votes on nominees for the commissioner’s seat(s) of that agency.
Once President-elect Trump is sworn in, he will be able to appoint a new leader for FERC. Democrats could still maintain a majority of the agency’s five-member commission for another 18 months.
Currently, the commission is prioritizing electric transmission, reliability and affordability through policies for generating resources, energy-efficient appliance standards, the Infrastructure Investment and Jobs Act of 2021, and the Inflation Reduction Act (IRA) of 2022, from which President-elect Trump has proposed repealing select provisions.
What We Can Expect From a Republican-Controlled Senate
The Republican Senate majority, coupled with Senator Crapo’s new role as Chair of the Senate Finance Committee, along with the Republican majority on the committee, increases the likelihood of extending and/or making permanent the TCJA of 2017. Specifically, the pro-growth provisions of reinstating 100% bonus depreciation, immediate expensing of research and development expenditures, reverting the interest limitation back to earnings before interest, taxes, depreciation, and amortization (EBITDA) and making permanent the up to 20% qualified business income deduction (199A deduction) and the estate tax exemptions enacted during the previous Trump Administration, which are set to expire in 2025.
Republicans Sweep of Congress
As of the latest election results, the Republicans have gained one seat in the House and are now at 219, while the Democrats have lost one and currently hold 213, with three races still uncalled. Accordingly, the Republicans have reached the 218 seats needed for a majority and are in the majority in both the Senate and House of Representatives.
This puts the Republicans in a majority position to potentially implement a number of President-elect Trump's proposed tax policies, such as permanently extending the TCJA of 2017 provisions, repealing specific provisions of the IRA of 2022 and imposing tariffs.
Related Insights
- Article: Pre-Election Analysis: Tax Policy and the Upcoming House and Senate Elections
- Article: Trump’s Proposed Tax Policies: What To Expect for You and Your Business
- Article: Unlocking Election Year Insights: The Inflation Reduction Act's Impact
Disclaimer:
The content focuses on presidential tax proposal plans and is intended to provide general information about the potential tax legislation that may be implemented by the future government. The information provided in this content piece is not intended to serve as legal or tax advice and should not be relied upon as such. The prospective potential legislation mentioned in this content piece is subject to change, and there is no guarantee that any proposed legislation will be enacted into law. Any action taken based on the information provided in this content piece is at their own risk, and Cherry Bekaert shall not be held liable for any such action taken.
References
1 “About the Ranking Member,” United States Senate Committee on Finance, accessed November 9, 2024, https://www.finance.senate.gov/about/ranking-member.
