A Comparison of the House and Senate Trade Bills

The House is considering trade legislation (H.R. 1314, H.R. 1295, and H.R. 644) this week that would fast-track authority for a few major trade deals that are currently being negotiated, change some trade enforcement rules, and extend various other trade-related provisions. Just as the House's previous bills and the Senate's bills (S. 995, S. 1267, S. 1268, and S. 1269) did, the costs contained in the legislation are paid for over ten years with savings from across the budget. The main difference between the current House and Senate versions is the Senate's use of an increase in the 2024 Medicare sequester as an offset; by contrast, the House enacts and then repeals this increase in separate bills and replaces the savings with tax compliance policies. The budgetary effect of each chamber's trade bills are combined and shown in the table below.

2015-2025 Costs/Savings (-) in the House and Senate Trade Bills
  House Senate
Extend Trade Adjustment Assistance Through 2022 $2.7 billion $2.7 billion
Extend Health Care Tax Credit Through 2019 $0.2 billion $0.2 billion
Extend Trade Preferences Through 2017/2025 $5.9 billion $5.9 billion
Increase Payments to Counteract Export Subsidies and Dumping $0.2 billion $0.2 billion
Increase Minimal Shipment Value Exempt from Customs Duties $0.2 billion $0.2 billion
Increase Funding for Trade Enforcement N/A $0.2 billion
Subtotal, Costs $9.2 billion $9.4 billion
Extend Customs Fees Through 2025 -$3.9 billion -$3.9 billion
Extend Merchandising Fees Through 2025 -$3.9 billion -$3.9 billion
Eliminate Foreign Exclusion and Child Tax Credit Overlap -$0.3 billion -$0.3 billion
Increase Medicare Sequester by 0.25% in 2024 $0* -$0.7 billion
Reduce Renal Dialysis Payments -$0.3 billion -$0.3 billion
Increase Reporting for Education Tax Benefits -$0.6 billion N/A
Deny/Revoke Passports of Seriously Delinquent Taxpayers N/A -$0.4 billion
Increases Penalty for Late Tax Return Filing -$0.2 billion N/A
Increase Penalties for Failing to File 1099s -$0.1 billion N/A
Expand Reporting for Unreported or Underreported Accounts N/A -$0.1 billion
Subtotal, Savings -$9.3 billion -$9.6 billion
Total -$0.1 billion -$0.2 billion

Source: CBO
*One of the bills increases the Medicare sequester in 2024, and another bill repeals the increase.