President Trump addressed a joint session of Congress on 4 March in a wide-ranging speech that covered both taxes and tariffs. The President said he wanted "permanent income tax cuts" and continued to call for no tax on tips, no tax on overtime and no tax on Social Security benefits.

The Trump Administration this week initially imposed 25% tariffs on Canada and Mexico (10% on Canada energy resources) effective 4 March, after a month-long delay. President Trump on 5 March delayed the 25% tariffs on Canada and Mexico for automobile imports and then on 6 March delayed the tariffs for all products covered under the US-Mexico-Canada (USMCA) agreement.

President Trump said the agreement to delay the tariffs lasts until 2 April, after the Administration's America First Trade Policy review is completed and the reciprocal tariffs review gets underway. The President also said broader automobile and chips tariffs may be announced later.

Regarding budget reconciliation, House Ways & Means Committee Republicans reportedly will meet next week to begin drafting a budget reconciliation bill to extend expiring Tax Cuts and Jobs Act (TCJA) provisions. In terms of a timeline, Ways & Means Chairman Jason Smith (R-MO) this week was quoted as saying the House plan is to get a budget reconciliation bill on the President's desk by Memorial Day, which this year falls on 26 May.

In the Senate, efforts to adopt the same budget resolution as the House have not progressed and no Senate votes on the matter are expected until after Congress returns from its next recess, scheduled for 17-21 March.

Congress will now have to pivot from budget reconciliation to address the expiration of government funding on 14 March. House Speaker Mike Johnson (R-LA) and President Trump have said efforts would focus on passing a continuing resolution (CR) of current funding levels through the end of the fiscal year, which ends on 30 September. It is unclear if congressional Democrats will agree to this approach or withhold support over policy disagreements with the Trump Administration.

In addition to the congressional recess the week of 17 March, Congress will also adjourn for a two-week recess in April, further affecting lawmakers' plans for legislative work this spring.

The Senate, on 4 March, voted to repeal a Biden-era regulation requiring some cryptocurrency platforms to report their customers' transactions to the Internal Revenue Service, starting with tax year 2027. The vote on the joint resolution (S.J. Res. 3) was 70-27. The resolution was offered under the Congressional Review Act (CRA), which allows the repeal of agency regulations with a simple majority vote in the Senate if the resolution is acted upon within a certain time frame following the rule's publication in the Federal Register. The House Ways & Means Committee reported out the resolution the week before and the full House is expected to vote on it soon. Approval of the resolution would represent the first time Congress has eliminated a tax rule using the CRA.