S.J.Res.102, H.J.Res.142 Disapproving D.C. Income & Franchise Tax Conformity Act

[Gavel sounds.] The committee will come to order. Pursuant to notice issued on January 28, 2026, the committee will consider one piece of legislation today, S.J. Res. 102. The committee will now proceed to consideration of S.J. Res. 102, a joint resolution disapproving the action of D.C. Council in approving the D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025. Senator Scott, would you like to discuss the legislation?

Thank you, Chairman Paul, for holding this markup. Recently, the D.C. City Council chose to deny D.C. residents the tax cuts passed by Congress with President Trump's Working Families Tax Cut in a move that defies logic. It seems obvious that the D.C. Council Democrats would love to undermine every single move President Trump makes, every promise he keeps to the American people. But to deliberately deprive residents of the opportunity to keep more of their hard-earned dollars is simply unfair and absurd. As governor, I cut taxes over 100 times to help turn our economy around, and businesses grew and it worked. Families and businesses thrive. That's what the president is doing on the federal level with no tax on tips and no tax on overtime. These tax cuts support hardworking American families and businesses. It allows Americans, especially those in the service industry here in D.C., to keep more of their own money. It also allows deductions for seniors who live on fixed incomes and struggle when costs go up. I don't understand how anybody would not support this. Government's top priority should be serving American families, and these tax cuts directly help these families. My joint resolution of disapproval, which would give the same local tax relief to D.C. residents that is provided to all Americans under President Trump's Working Families Tax Cuts, is endorsed by multiple organizations, including the D.C. Police Union, Small Business and Entrepreneurship Council, National Restaurant Association, National Association of Convenience Stores, National Association of Wholesaler-Distributors, U.S. Chamber of Commerce, Association of Mature American Citizens, Independent Women's Forum, International Franchise Association, National Taxpayers Union. I also want to thank Senators Ernst and Moreno, who are on this committee, for joining me as cosponsors of this resolution, and I urge all my colleagues to support this resolution to help Americans keep their hard-earned dollars.

Is there further debate? Mr. Chair.

Senator Hassan.

Look, our country faces really serious challenges right now, including, of course, ICE's outrageous actions to intimidate people all across the country, trample on people's civil rights, and act lawlessly. Two American citizens from Minnesota, Renee Good and Alex Preddy, were killed by masked federal agents, and countless other people have been severely harmed. There has been bipartisan concern about ICE's violation of American civil liberties, including from the chairman, and it's an important first step that we're hearing from some administration officials next week in this committee. But we need the decision-maker to come before this committee, and that's why Democrats on this committee are pushing for Secretary Noem to testify about what is happening in Minnesota and across the country and how we can rein in ICE. I hope that we'll have an opportunity to do that soon. Now, we're here today, though, to mark up a bill that claims that the federal government knows better than local governments when it comes to the local government's own finances. I used to serve as governor of New Hampshire. We had a lot of hard-fought budget battles. The last thing, though, that we needed was for the federal government to come in and decide that they knew better about our state's budget than we did. But that's exactly what this legislation is proposing to do to the District of Columbia. The people of D.C., through their elected representatives in the D.C. Council, have a right to decide their own local tax policy, just like the people of New Hampshire get to decide how much state taxes we have in New Hampshire. That's one of the reasons why Congress has never overturned a tax measure like this, a measure that was approved by the District of Columbia. The D.C. government has also raised serious concerns about how this federal overreach would throw its budget into chaos and harm its efforts to lift children out of poverty as hardworking families continue to struggle with high costs. For all of these reasons, I urge my colleagues to vote no on this disapproval resolution. D.C. should be allowed to set its own budget, just like any of the states we represent. Mr. Chairman, our committee has received several letters opposing this resolution from a variety of sources, including the nonpartisan D.C. CFO, the D.C. mayor, the chairman of the D.C. Council, the D.C. business community, including the Chamber of Commerce, and several other community stakeholders. I ask unanimous consent that these statements be included in the committee record.

Without objection.

Thank you, Mr. Chairman.

Senator Blumenthal.

Thank you, Mr. Chairman. I want to associate myself with the very powerful remarks of Senator Hassan. First, to say that yesterday we had a hearing in this very room involving victims of brutality and violence that I never thought we would see at the hands of our own government. Our own government brutally assaulting citizens of the United States, injuring them physically and emotionally. That forum has resonated all around the country, and I think Secretary Noem has an obligation to come before our committee, which has responsibility for her agency. We have an oversight responsibility. Whether we agree or disagree with the policies of ICE and CBP, we have a responsibility to request, urge, and demand that she appear before this committee and address some of the concerns that were raised yesterday at that very table. And second, I just want to second the remarks made by Senator Hassan. The people of the District of Columbia don't deserve to be treated as second-class citizens. If they were in states, red or blue, throughout this country, there would never be the suggestion that we would override their local or state tax decisions. Nobody would think of it. And to my Republican colleagues, as a state official for most of my career, as attorney general, I defended the rights of states to make decisions. They are closer to their citizens than we are about issues like taxes and criminal law and other matters where they have a right to decide under our constitutional framework that accords them sovereignty. Now, I recognize the District of Columbia doesn't have the same constitutional sovereignty, but the spirit of the Constitution is that people ought to be respected in the local decisions that they make about their own lives. And so, Mr. Chairman, I respectfully suggest that we not approve this measure. I think it really would be disgraceful and shameful to this committee and to this body if we do. Thank you.

The question is on final passage of S.J. Res. 102. The clerk will call the roll.

Senator Johnson. Senator Johnson. Senator Lankford.

Aye.

Senator Scott.

Aye.

Senator Hawley.

Aye.

Senator Moreno.

Aye.

Senator Ernst.

Aye.

Senator Moody. Senator Peters.

No by proxy.

Senator Hassan.

No.

Senator Blumenthal.

No.

Senator Fetterman.

No by proxy.

Senator Kim.

No.

Senator Gallego.

No by proxy.

Senator Slotkin.

No by proxy.

Senator Paul.

Aye.

Mr. Chairman, on the vote of those present, the ayes are seven and the nays are three. On the vote by proxy and for the record only, the ayes are zero, the nays are four. On this vote, the ayes are seven, the nays are three, and the motion is agreed to.

The bill is favorably reported. This concludes today's markup. This business meeting is now adjourned. [Gavel sounds.] Thank you.