President Donald Trump’s drive to enact trillions of dollars in tax cuts and raise the federal debt is on track after he and congressional leaders successfully corralled House Republican lawmakers to approve a Senate-passed budget outline.

The 216-214 vote Thursday on the budget — which outlines the parameters for the tax cut and debt ceiling increase — was delayed a day so Trump and Republican congressional leaders could assuage a dissident group of conservative spending hawks pressing for deeper cuts in safety-net programs. 

The president worked the holdouts by phone and in a White House meeting. House Speaker Mike Johnson held a press conference to declare himself “committed” to coming up with at least $1.5 trillion in spending cuts. And Senate Republican leader John Thune joined the speaker to announce “a lot of” Republican senators shared the goal, though he stopped short of a commitment. 

It was enough. 

With the budget approved, the way is open for a follow-on package to cut taxes by up to $5.3 trillion over a decade and raise the debt ceiling by $5 trillion, in exchange for $4 billion in spending cuts. Republicans can now pass Trump’s tax-cut agenda solely on GOP votes, bypassing the need for negotiations with Democrats.

Trump offered congressional Republicans “Congratulations” in a social media post minutes after the vote.

The vote came a day after Trump announced a 90-day pause on some of his sweeping tariff plans that have roiled markets and sparked predictions of a looming recession. Financial markets — often a barometer of success for the president — initially soared on the news, though U.S. stocks retreated Thursday morning amid angst over an escalating trade conflict with China.

Republicans are planning to renew Trump’s first-term tax cuts for households and the owners of privately held businesses, and enact a fresh round of reductions, including expanding the state and local tax deduction and eliminating levies on tipped wages.

Conservative hardliners in the House say they want a final package to trim $2 trillion in spending over the next decade, a significant increase over the $4 billion the Senate is directed to cut in the budget passed Saturday. To make those reductions they’ll likely need to curb Medicaid, food stamps and other social programs with tens of millions of beneficiaries. 

A group of moderate Republicans sought — and gained — assurances from Johnson during the vote that the final bill would not cut benefits for qualified Medicaid individuals and institutions, said New Jersey Republican Jeff Van Drew. 

“We voted late to make the point,” Van Drew said. 

The group, however, is open to eligibility reviews and work requirements for Medicaid recipients, he said. 

The budget outline punts many of the hard decisions for lawmakers to hammer out later in the tax-cut negotiations. That could lead to a standoff with the Senate at the end of the process, where several members are resistant to large cuts in safety-net programs. 

Democrats assailed the plan as cutting benefits for the poor in order to pay for a tax cut skewed toward the wealthy. 

“Republicans do nothing to lower the high cost of living,” Democratic Leader Hakeem Jeffries said on the House floor. “In fact, you’re making the affordability crisis in America worse, not better, when you target earned benefits and things that are important to the American people, like Medicaid.”

Senator John Barrasso, the No. 2 Senate Republican, said GOP lawmakers in both chambers are committed to “very serious savings for the American taxpayer.”

Trump hosted Republican holdouts at the White House on Tuesday to urge their backing. He echoed his pleas while speaking later that day at a donor event in Washington, imploring members who were hesitant to vote for the budget to “just get the damn thing done and stop showboating.”

“It is IMPERATIVE that Republicans in the House pass the Tax Cut Bill, NOW! Our Country Will Boom!!!” Trump posted on Truth Social Wednesday.

Johnson has set a target of the end of May to enact the tax bill, while Senate Republicans have talked of being able to complete the process by August. The 2017 tax cuts don’t expire until the end of the year.

Those self-imposed deadlines could be overrun by a fiscal deadline: the debt ceiling. 

The nonpartisan Congressional Budget Office estimates that the Treasury will be unable to pay all of its bills in August or September, but that date could come as soon as late May if tax receipts are low. 

Baker Tilly, a Top 25 Firm based in Chicago, reportedly is close to a megamerger with Moss Adams, another Top 25 Firm based in Seattle, creating a firm with $3 billion in annual revenue.

The deal, reported Wednesday by The Wall Street Journal and the Financial Times, would create potentially the sixth largest accounting firm in the U.S. Baker Tilly ranked No. 11 on Accounting Today‘s 2025 list of the Top 100 Firms with $1.8 billion in annual revenue, over 600 partners and nearly 6,900 employees. Moss Adams ranked right below it at No. 12 with $1.3 billion in annual revenue, over 400 partners and more than 4,800 employees.

Baker TIlly declined to confirm the deal, but acknowledged it’s always searching for merger candidates. 

“We can’t comment on speculation or confidential discussions,” said Baker Tilly spokesperson Nicole Berkeland in an email to Accounting Today. “What we can say is that we’ve been transparent about our strategy to grow through strategic mergers. We are continually exploring opportunities with respected firms that align with our vision and will strengthen our ability to serve the middle market.” 

Moss Adams also declined to comment. “It’s our policy not to comment on market speculation,” said Moss Adams spokesperson Greg Kunkel.

Koltin Consulting Group CEO Allan D. Koltin, who has previously advised Baker Tilly and Moss Adams on strategy and M&A, sees major ramifications from the deal. “Just when we thought nothing could get any bigger in CPA firm M&A than Forvis (formerly BKD and Dixon Hughes), and CBIZ (formerly CBIZ and Marcum), here comes Baker Tilly and Moss Adams (potentially) combining to create the sixth largest CPA firm in the country (only behind the Big Four and RSM),” Koltin said in an email. “After the combination, Baker Tilly will become the largest (non-Big Four) CPA firm in the Western region and Moss Adams will become part of a Top 10 Global Network. Additionally, both firms will bring over their unique areas of industry specialization and service line expertise which should provide robust organic growth opportunities to the combined firm. As a 44-year veteran and advisor to the accounting profession, I daresay there has been more change and transformation in the accounting profession in the past 4 years than the 40 prior years combined!”

Another merger expert also sees benefits in the combination. “The primary reason for this reported merger is to expand both firms’ scale and market position,” said Brad Haller, a senior partner in West Monroe’s mergers and acquisitions practice. This move would significantly boost Moss Adams’ scale and provide Baker Tilly with access to Moss Adams’ extensive client base. Together, they would become the sixth largest firm, leapfrogging over Grant Thornton and others. Additionally, this merger would allow Moss Adams to tap into Baker Tilly’s global networks, enabling them to expand their wallet share with clients. While there will be modest synergies in the long term as they combine redundant support services, the immediate benefits of this merger would be substantial.”

Baker Tilly is part  of the Baker Tilly International network, based in London, which reported $5.6 billion in worldwide revenue in 2024. Baker Tilly has done several acquisitions since receiving private equity funding last February led by Hellman & Friedman and Valeas Capital Partners, accelerating the firm’s growth strategy. Earlier this year, it acquired CironeFriedberg, a firm based in Bethel, Connecticut, and Hancock Askew, a Regional Leader based in Savannah, Georgia.

Last May, it merged in Seiler LLP, a Top 75 Firm based in Redwood City, California. Prior to the private equity funding, in 2022, Baker Tilly merged in Henry + Horne in Tempe, Arizona, True Partners Consulting in Chicago; Management Partners in Cincinnati and San Jose; Bader Martin in Seattle; Orchestra Healthcare in West Palm Beach, Florida; and Vanilla, based in the United Kingdom. Baker Tilly US is part of the London-based Baker Tilly International network and was formerly known as Baker Tilly Virchow Krause. In 2021, it added MFA Companies in Boston; The Compliance Group in Carlsbad, California; Arnett Carbis Toothman in West Virginia; AcctTwo in Houston; and Margolin, Winer & Evens in New York.

Moss Adams does not do M&A deals as often, but last December, it entered the Salesforce.com consulting market by acquiring Yurgosky Consulted Limited LLC in New York.

States are looking beyond the 150-hour requirement for CPA licensure and adding alternative pathways amid the profession’s pervasive ongoing talent shortage. 

Ohio and Virginia were the first two states to pass legislation establishing new pathways to licensure, with others following suit by introducing similar bills to their state legislatures, including Iowa this week. The bill language varies slightly by state, but one requirement that firmly remains is passing the Uniform CPA Examination.

See below for where things stand in those states that are moving forward on the issue, and read our feature here.