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Welcome to The Hill’s Business & Economy newsletter

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Business & Economy

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The Big Story

Senate tees up budget resolution vote

Senate Republicans are set to vote this week on a budget resolution as the chamber pushes to enact key parts of President Trump’s policy agenda.

Senate Majority Leader John Thune (R-S.D.) announced plans Tuesday for the chamber to take up the measure advanced by the Senate Budget Committee last week.

That puts the resolution on track to hit the floor this week as the chamber pressures the House to act.

“It’s time to act on the decisive mandate the American people gave to President Trump in November. Securing the border, rebuilding our defense, and unleashing American energy. That starts this week with passing Chairman @LindseyGrahamSC ’s budget,” Thune wrote on the social platform X, referring to the Budget panel chair. “Let’s get it done.”

The budget resolution package includes roughly $325 billion to implement Trump’s plans to boost border security and launch mass deportations, increase defense spending and advance his energy agenda.

After 50 hours of debate, the chamber would hold a vote-a-rama, an hours-long period of votes on myriad amendments.

The Hill’s Al Weaver has more here.

Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.

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Essential Reads

Key business and economic news with implications this week and beyond:

DC plane crash victim’s family files claims against FAA, Army

The family of a passenger on board the airliner in the deadly midair collision near Reagan Washington National Airport on Jan. 29 took steps Tuesday to initiate a $250 million negligence lawsuit against the Federal Aviation Administration (FAA) and the Army.

Full Story

Nobel-winning economist warns Trump policies risk causing stagflation

Nobel Prize-winning economist Joseph Stiglitz flagged major concerns for the economy under President Trump, claiming fluctuating policies put the nation at risk of stagflation.

Full Story

New DNC chair: Union workers, labor leaders will be ‘core to my decision-making’

New Democratic National Committee (DNC) Chair Ken Martin said Tuesday that union workers and labor leaders will be “core to my decision-making.”

Full Story

Southwest Airlines cutting 1,750 jobs

Southwest Airlines on Monday announced it will cut 1,750 jobs in late April in what will be the first round of layoffs in the company’s 53-year history.

Full Story

Tax Watch

Welcome to Tax Watch, a new feature in The Hill’s Business & Economy newsletter focused on the fight over tax reform and the push to extend the 2017 Trump tax cuts this year.

Possible Medicaid cuts open up new front of resistance to GOP agenda

Republicans want to make cuts to Medicaid to help pay for extensions to the 2017 Trump tax cuts, but the prospect of slashing the federal health care system is opening a new rift within the conference.

Budget hawks and the state and local tax (SALT) deduction caucus have been the two main oppositional blocs to the mainline Republican agenda so far, but now party moderates like Reps. Nicole Malliotakis (N.Y.) and David Valadao (Calif.) are forming another front of resistance.

Several Republicans have discussed cutting the amount by which the federal government matches state investments in Medicaid, but there are other Medicaid cuts under consideration, as well.

These include lowering the Medicaid provider tax safe harbor from 6 percent to 4 percent between 2026 and 2027 and then to 3 percent in 2028 and after; and standardizing Medicaid administrative matching rates at 50 percent.

Reducing the provider safe harbor could bring in as much as $175 billion over the budget window, while locking in the matching rates could bring in around $70 billion.

— Tobias Burns

COMING UP

The Hill’s Evening Report breaks down the day’s big political stories and looks ahead to tomorrow. Click here to sign up & get it in your inbox

The Ticker

Upcoming news themes and events we’re watching:

The Federal Reserve releases January meeting minutes on Wednesday at 2 p.m. ET.

In Other News

Branch out with more stories from the day:

Stock market today: Wall Street rises to a record following a small gain for the S&P 500

NEW YORK (AP) — U.S. stocks crept to a record as the S&P 500 nudged higher after a quiet Tuesday …

Full Story

Good to Know

Business and economic news we’ve flagged from other outlets:

Stocks are little changed as S&P 500 trades near record high (CNBC)
Treasury Yields Climb as Traders Seek Further Clues on Fed Path (Bloomberg)
New real estate rules threatened to upend homebuying for Americans. Here’s what experts say has changed (CNN)

What Others are Reading

Top stories on The Hill right now:

Watch live: Trump signs executive order at Mar-a-Lago expanding IVF

President Trump is slated to sign an executive order expanding access to in vitro fertilization (IVF) Tuesday afternoon while in Florida. Read more

Federal judge reinstates employee appeals board member fired by Trump

A federal judge on Tuesday temporarily reinstated a member of a three-person federal employee appeals board who was fired by President Trump. Read more