Legislative Update: Senate Passes Budget Reconciliation Bill (O3B)

Earlier today, the U.S. Senate narrowly passed the budget reconciliation bill formally titled the “One Big Beautiful Bill Act” (O3B). The vote was split 50-50, with Vice President JD Vance casting the tie-breaking vote.

Key Wins for NARPM Advocates: The Senate version of the bill includes several provisions aligned with NARPM’s priorities:

• No changes to 1031 exchanges
• No changes to carried interest provisions
• No limitations on the corporate SALT deduction, including local property taxes on rental properties
• Preservation and expansion of the Qualified Business Income (199A) deduction, maintaining the 20% rate and adding a floor to benefit small businesses

Next Steps: The bill now returns to the House, which is scheduled to consider the Senate version tomorrow, July 2. While the Senate made some changes—particularly around Medicaid—that may cause friction, Republican leadership is pushing for swift passage to meet the informal July 4 deadline set by the White House