ACA April 16th Webinar Recap with our lobbyist The BGR Group

Below is a recap of what was covered in ACA's webinar with our lobbyist The BGR Group, from the current state of residency-based taxation (RBT) legislation to the political landscape shaping our path forward.

ACA has been advocating on behalf of Americans abroad for nearly 50 years and today operates from Washington, DC with thousands of members across more than 100 countries. We are the only organization representing Americans abroad with the full set of advocacy tools: registered lobbyists, internal staff, a Political Action Committee (PAC), and — critically — an engaged and active membership like you.

Legislative Update

Work on Residence based Taxation (RBT) legislation continues, though the drafting process has taken longer than anyone anticipated. Staff from both Rep. LaHood (R-IL) and Sen. Young (R-IN) offices have been working closely with Legislative Counsel and the Joint Committee on Taxation (JCT) to refine the bill text — the result of extensive feedback from ACA and other stakeholders. The legislation has already doubled in length from the 2024 version as the offices work to close potential loopholes and balance fairness to Americans abroad against federal revenue concerns.

All parties involved remain motivated to find a path forward. The top priority is to ensure the bill is bipartisan, which gives it the strongest chance of passage. The goal is to have fully polished legislation ready to attach to a moving tax vehicle when the opportunity arises.

The main obstacle in the drafting process is the cost of the legislation. The most recent JCT score estimated that the legislation would have a significant cost — a loss of federal revenue. This remains the most significant hurdle. The congressional offices are determined to have the introduced version of the legislation have a realistic path to becoming law.

ACA has been asked to provide input and suggestions on the new legislative language which Rep. LaHood and Sen. Young will be reviewing and providing to the Joint Committee on Taxation (JCT) for their consideration.  All this is being done to help our Congressional champions craft the best possible legislation at the lowest cost to the U.S. Treasury. ACA is using our expertise in the drafting of RBT and our professional research studies – two fielded in 2017 and 2022 and one currently in process to help guide the development of legislative language and costing.

ACA members and supporters have sent thousands of messages to Capitol Hill – letters, emails, calls, and tweets – on our issues. Our advocacy letter-writing campaigns remain one of our most powerful assets. It is easy to use and your messaging goes directly into your Representatives’ offices. ACA can follow up with those offices and reinforce the need for RBT. We encourage you to continue doing so now, particularly in support of Residency-Based Taxation: https://www.americansabroad.org/big_tax_bill_in_dc.  

Reconciliation 2.0 & the Remainder of the 119^th Congress

A second reconciliation package is underway, though with a narrow focus: funding for ICE and border patrol. Since the webinar, Congress has taken the first step and moved the budget reconciliation instructions through both chambers of Congress, instructing House and Senate committees to begin the drafting process for the skinny package. President Trump has endorsed the approach and has stated he wants it done by June 1.

Beyond reconciliation, a number of other significant legislative items remain on the congressional calendar for the 119th Congress: the SAVE America Act, FISA reauthorization, NDAA, and government funding.

Midterm Outlook

The political landscape heading into the midterms is closely contested — and consequential for our advocacy work.

In the House, Republicans hold a slim majority and Democrats only need a net gain of four seats to take control. Looking ahead to November, roughly 30 races are considered competitive and will determine which party holds the majority. In the Senate, Republicans hold a 53–47 majority, meaning Democrats would need to flip four seats to reclaim control.

Notably, Congress is experiencing a record wave of retirements — over 70 members, or more than 10% of the full body, have announced they will not seek reelection. History also favors the opposition party with the President's party having lost seats in 93% of House midterm elections since the Civil War.

Path Forward

As our House and Senate champions continue working through the drafting process, with the goal for a product that is ready for “prime time” when the next legislative vehicle is available, ACA is thinking creatively about next steps. ACA remains close to our champions in Congress and continues to socialize the legislation and garner support with Congressional offices so that when the final version of the legislation has been drafted and scored there are Representatives in place to co-sign and support the legislation. 

To maintain the momentum on tax issues facing Americans living and working oversees and ensure the President campaign promise remain a priority for the Trump Administration, ACA is also reexamining the Same Country Exemption (SCE) proposal. SCE is not a replacement for RBT; rather, it is a complementary, short-term solution to the problem of foreign financial access lockout. ACA is looking at all avenues to get RBT legislation enacted, regulatory fixes can help and help build support with Congressional offices for RBT legislation.