The US House of Representatives, late on 25 February, adopted a FY2025 budget resolution that provides the framework for a House budget reconciliation bill to extend expiring provisions of the Tax Cuts and Jobs Act. The resolution, which covers a 10-year period, requires at least $2t in deficit reduction from other House committees to avail the Ways & Means Committee of a full $4.5t net deficit increase for tax cuts. A minimum of $1.5t in mandatory spending cuts is required from the other committees, including $880b from the Energy & Commerce Committee.

While the House has adopted the budget resolution, crafting reconciliation legislation will require significant negotiation among GOP members over the coming months. House Speaker Mike Johnson (R-LA) underscored on 25 February that "this resolution itself contains no policies. It is a framework only. "

House Republican leaders now need to negotiate a compromise with the Senate, which recently passed its own FY2025 budget reflecting a two-reconciliation-bill plan. The Senate resolution calls for more than $340b mostly to address border security and defense funding in an initial reconciliation bill, to be followed by a second bill addressing tax issues later this year.

President Trump, late on 21 February, signed a White House Memorandum that could set the stage for US action against countries that impose digital services taxes (DSTs) on US companies. It directs the US Trade Representative (USTR) to determine whether to renew investigations under section 301 of the Trade Act of 1974 regarding the DSTs of France, Australia, Italy, Spain, Turkiye and the United Kingdom that were initiated under the first Trump Administration and "take all appropriate and feasible action." The memorandum also directs the USTR to investigate the DSTs of other countries and consider pursuing a panel under the United States-Mexico-Canada trade agreement (USMCA) regarding Canada's DST.

The memorandum further directs the Secretary of the Treasury to "determine whether any foreign country subjects United States citizens or companies, including, without limitation, in the digital economy, to discriminatory or extraterritorial taxes, or has any tax measure in place that otherwise undermines the global competitiveness of United States companies, is inconsistent with any tax treaty of the United States, or is otherwise actionable under [IRC Section] 891, or other tax-related legal authority." The results of this determination are to be included in the report required under the 20 January White House memorandum relating to the OECD Global Tax Deal. A Global Alert has details.

The White House on 21 February also released an Executive Memorandum on President Trump's "America First Investment Policy." Among other things, the memorandum states that the Administration will "review whether to suspend or terminate the 1984 United States-The People's Republic of China Income Tax Convention."

The IRS on 25 February announced that acting Commissioner Douglas O'Donnell will retire from the agency, effective 28 February. Chief Operating Officer Melanie Krause will become interim leader of the IRS.

The OECD on 24 February released a Consolidated Report on Amount B that incorporates all materials on Pillar One Amount B released by the Inclusive Framework during the period February 2024 through December 2024. The OECD in February 2024 published the final report on Pillar One Amount B, which is intended to simplify and streamline the application of the arm's-length principle to baseline marketing and distribution activities, with a particular focus on the needs of low-capacity countries (Amount B approach).