logo
House Republicans warn Thune over megabill ‘budget gimmicks'

House Republicans warn Thune over megabill ‘budget gimmicks'

Politico10-06-2025

Thirty-eight House Republicans are warning Senate leaders against using 'budget gimmicks' as they revise President Donald Trump's 'big, beautiful bill,' adding a new red line as GOP lawmakers clash over the scope of new tax cuts.
The Republicans, led by House Budget Vice Chair Lloyd Smucker (R-Pa.), told Senate Majority Leader John Thune in a letter Tuesday that 'that any additional tax cuts' in the party's megabill 'must be matched dollar for-dollar by real, enforceable spending reductions.'
House lawmakers who signed the letter include Republican Conference Vice Chair Blake Moore of Utah, House Budget Chair Jodey Arrington of Texas and House Freedom Caucus Chair Andy Harris of Maryland.
It's the latest power play orchestrated by Smucker, who in May successfully mobilized 32 colleagues to compel House leadership to commit to finding additional spending cuts to meet overarching deficit reduction targets — if Republicans also enact additional tax cuts in their larger domestic policy package.
Smucker's new letter, obtained first by POLITICO, is now seeking to squeeze the other chamber as Thune and his top lieutenants are scrambling to strike a balance between making changes to the House-passed product that senators can support without losing the necessary votes across the Capitol.
'We recognize the Senate will have its own say to make changes to the bill, and we welcome amendments that increase verifiable savings and make the overall package even more sustainable,' the House Republicans wrote in their letter, sent Tuesday to Thune. 'Additional spending reduction strengthens the bill and the nation alike. What cannot change is the architecture established by the House framework.'
Specifically, Smucker and his allies want Thune to adhere to the same structure of the House bill, while also disavowing accounting tactics like 'timing shifts' to artificially reduce the cost of the bill and instead find 'genuine savings.'
'Pairing tax relief with spending restraint preserves investor confidence, reins in interest costs, and maximizes economic growth from the bill,' the members said.
In both the House and the Senate, Republican leaders can only lose three votes and still pass the measure along party lines.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Sunrun Stock (RUN) Plummets 40% as U.S. Senate Targets Solar Credits
Sunrun Stock (RUN) Plummets 40% as U.S. Senate Targets Solar Credits

Yahoo

time38 minutes ago

  • Yahoo

Sunrun Stock (RUN) Plummets 40% as U.S. Senate Targets Solar Credits

The solar sector is reeling after the release of the Senate Finance Committee's proposed tax-and-spending bill, which targets renewable energy sources. Sunrun (RUN), a major player in residential solar, was particularly vulnerable to the news, shedding almost 40% of its valuation in the past week. Having traded as high as $13.20 per share in late May, the stock is now languishing at ~$6 following this week's news. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter In my view, the proposed incentive cuts pose a significant threat to Sunrun's viability, particularly given its ongoing inability to generate profits despite these benefits being in place. Without that financial support, a turnaround seems even less likely, leaving me firmly bearish on the stock. For those unfamiliar, Sunrun primarily operates under a third-party ownership (TPO) model. Instead of homeowners purchasing solar systems outright, Sunrun installs and owns the panels, allowing customers to either lease the system for a monthly fee or pay for the electricity it generates at a fixed rate. This model has gained popularity because it enables homeowners to adopt solar with little to no upfront cost. Thanks to the Inflation Reduction Act (IRA), which extended and enhanced the federal Investment Tax Credit (ITC), Sunrun, as the system owner, can claim a tax credit typically worth 30% of the system's cost. This significantly lowers installation expenses and enables Sunrun to pass those savings on to customers, making the model more financially appealing. The Senate Finance Committee has recently proposed eliminating solar tax credits in favor of supporting other energy sectors, such as geothermal, nuclear, and hydropower. If passed, this legislation would require Sunrun to absorb the full cost of its solar systems, which would inevitably be passed on to customers. The result would be a significant squeeze on margins and an acceleration of the company's ongoing cash burn. Senate Republicans are reportedly aiming to pass the bill before the July 4th holiday. Upon closer examination, this appears to mark a broader shift in U.S. energy policy away from residential solar and wind. The market has already begun to react, with notable declines in Sunrun's peers, including Enphase Energy (ENPH) and SolarEdge Technologies (SEDG), underscoring the potential sector-wide impact. There's still hope for solar advocates. The proposed bill faces strong resistance from Democrats, particularly from the original architects of the clean energy tax credits included in the Inflation Reduction Act. The clean energy industry is also mounting an aggressive lobbying effort, warning of potential job losses and higher energy costs. And while the bill is led by the GOP, not all Republicans are aligned in support. The legislation still has a long way to go. It narrowly passed the House in May with a 215–214 vote, and the Senate draft was just introduced on June 16. While the Senate version includes more extended phase-out periods for some clean energy incentives, it still calls for the elimination of Section 48E credits, which are key to residential solar leases. A Senate vote is expected soon, and if proponents can secure a simple majority, the bill could advance to President Trump's desk. For context, the current Senate makeup is 53 Republicans, 45 Democrats, and two Independents. In the near term, Sunrun could experience a temporary boost in demand as customers rush to take advantage of tax credits before they're phased out. However, expectations for 2026 and beyond point to a sharp and sustained decline in demand. A closer look at Sunrun's financials reveals troubling signs. The company has consistently reported negative operating cash flow, with a loss of over $100 million in Q1 2025 and nearly $800 million in total for 2024, highlighting the financial pressure it faces even before potential incentive cuts take effect. Meanwhile, Sunrun, in its pursuit of growth opportunities, is becoming increasingly leveraged, increasing its risk profile should things take a turn for the worse. Moving forward, ongoing tariff pressures and the disappearance of incentive credits spell long-term trouble for solar installers. Analyst sentiment on Sunrun (RUN) stock is mixed. The stock carries a consensus Hold rating, based on seven Buy, six Hold, and four Sell ratings over the past three months. Despite the cautious stance, RUN's average price target of $10.44 suggests significant upside potential—about 70% from current levels. Mizuho analyst Maheep Mandloi has a Buy (Outperform) rating on RUN with a price target of $16. He notes that the House's 'One Big Beautiful Bill' won't derail grandfathered credits until 2028. He also believes that demand for renewable energy will remain high without government incentives because it is 'still the cheapest option.' However, not everyone shares Mandloi's bullish outlook. Jefferies analyst Julien Dumoulin Smith downgraded RUN to Sell (Underperform) with a price target of $5. Due to the same legislation, Smith notes that Sunrun is exposed to 'both near- and long-term headwinds.' He believes that the market is underestimating 'how consequential the 'One Big Beautiful Bill Act' is uniquely on residential solar.' The so-called 'One Big Beautiful Bill' poses a major threat to solar companies like Sunrun. The company's growth has heavily relied on tax credits tied to third-party ownership (TPO) systems. Even with those incentives, Sunrun has struggled to achieve consistent profitability. Without them, serious doubts emerge about its ability to maintain its current business model. If the bill passes, Sunrun—and others in the space—will likely be forced to pivot toward new strategies or market segments. That said, the bill could still fail, or be amended in ways that lessen the impact on Sunrun. Additionally, the proposed phase-out period provides a window for the company to adjust. From my perspective, I'd prefer to stay on the sidelines until there is more regulatory clarity. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Tech stock hits all-time high after receiving 'First Buy' rating and 'genius' buzz
Tech stock hits all-time high after receiving 'First Buy' rating and 'genius' buzz

Yahoo

timean hour ago

  • Yahoo

Tech stock hits all-time high after receiving 'First Buy' rating and 'genius' buzz

Tech stock hits all-time high after receiving 'First Buy' rating and 'genius' buzz originally appeared on TheStreet. The stock of Circle Internet Group (NYSE: CRCL) surged as much as 17% once it received the First Buy rating from Seaport Global on June 20, Bloomberg reported. Circle is the company behind the USDC stablecoin. A stablecoin is a type of cryptocurrency that tries to maintain a stable value, unlike mainstream cryptocurrencies like Bitcoin that are generally volatile. Circle's USDC, as the name suggests, is pegged 1:1 to the U.S. dollar. The second-largest stablecoin, it accounts for around 25% of the total stablecoin market cap of $251 billion, as per DeFiLlama. Join the conversation with Scott Melker on The company made a spectacular public debut on June 5 as it opened at $69, around 125% higher than the IPO price of $31. On June 17, the GENIUS Act, the legislation dealing with stablecoin regulation, passed the Senate. The landmark move further boosted the already booming CRCL stock as it surpassed the $200 price mark the next day. Join the conversation with Scott Melker on Now, Seaport Global has granted Circle the First Buy rating, demonstrating the growing institutional confidence in the newly launched stock and even in the burgeoning stablecoin industry. Seaport analyst Jeff Cantwell anticipates Circle increasing its revenue 25%-30% annually. In fact, the firm could reach $3.5 billion in revenue in 2025, he said. Cantwell added: "We view Circle as a top-tier crypto 'disruptor' with a sizable future opportunity." Since its public debut on June 5, the CRCL stock has surged more than 400% in value. It even hit an all-time high (ATH) of $248.88 on June 20. At press time, CRCL was trading at $237.88. Tech stock hits all-time high after receiving 'First Buy' rating and 'genius' buzz first appeared on TheStreet on Jun 20, 2025 This story was originally reported by TheStreet on Jun 20, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Supreme Court delivers another blow to California's imperiled emissions standards
Supreme Court delivers another blow to California's imperiled emissions standards

San Francisco Chronicle​

timean hour ago

  • San Francisco Chronicle​

Supreme Court delivers another blow to California's imperiled emissions standards

The Supreme Court reinstated legal challenges by oil and gas companies Friday to California's strict emissions standards for motor vehicles, standards that the Trump administration is likely to halt on its own in the near future. Federal law allows California to set tighter limits on auto emissions than the national standard, and since 1990 has allowed other states to adopt California's rules, an option taken by 17 states and the District of Columbia. But fuel companies affected by the increasing use of electric vehicles contend the state's standards are too restrictive and have sued to overturn them. Lower federal courts ruled that companies had failed to show they were being harmed by the standards, and therefore lacked legal standing to sue, because electric car sales are increasing for other reasons. The Supreme Court disagreed in a 7-2 decision. 'The whole point of the regulations is to increase the number of electric vehicles in the new automobile market beyond what consumers would otherwise demand,' Justice Brett Kavanaugh wrote in the majority opinion. 'The government generally may not target a business or industry through stringent and allegedly unlawful regulation, and then evade the resulting lawsuits by claiming that the targets of its regulation should be locked out of court.' But dissenting Justice Ketanji Brown Jackson said lawyers in the case had told the court that the Environmental Protection Agency, under President Donald Trump, was about to withdraw its approval of California's waiver from nationwide standards, 'which will put an end to California's emissions program.' The EPA took that action during Trump's first administration, which was reversed under President Joe Biden. Meanwhile, legislation passed by the Republican-controlled Congress and signed by Trump would prevent California from banning sales of new gasoline-powered vehicles in 2035, a law the state has challenged in court. The Supreme Court 'is already viewed by many as being overly sympathetic to corporate interests,' and Friday's ruling 'will no doubt aid future attempts by the fuel industry to attack the Clean Air Act,' said Jackson, a Biden appointee. In a separate dissent, Justice Sonia Sotomayor said the court should have returned the case to a lower court to await the EPA's action. Kavanaugh, however, said fuel companies affected by California's current standards could seek to prove in court that they were arbitrary and unlawful. His opinion was joined by Chief Justice John Roberts and Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, Amy Coney Barrett and Elena Kagan. Liane Randolph, chair of the California Air Resources Board, said it was not a full-scale rejection of the state's emissions standards. 'This ruling does not change California's Advanced Clean Cars rulemaking, nor does it dispute what data has shown to be true: vehicle emissions are a huge source of pollution with grave health impacts, consumer adoption of zero emission vehicles continues to rise, and global auto manufacturers are committed to an electric future,' she said in a statement. But attorney Brett Skorup of the libertarian Cato Institute said the ruling was 'a welcome rebuke to judicial gatekeeping' and affirmed that 'predictable economic harms from government regulation' entitle 'injured parties (to) have their day in court.' The case is Diamond Alternative Energy v. EPA, No. 24-7.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store