The Abstract

> Edited by Torie Ludwin, Arnold Ventures (AV)

The federal budget markups are off and rolling! With the expiration of the Tax Cuts and Jobs Act (TCJA) at year’s end, this reconciliation has the potential to shape the tax code for years to come. Have a look at some of the issues AV is bringing to the discussion:

• Options for capping the SALT deduction for businesses, which can potentially raise over $430 billion in revenue to support key provisions of the Tax Cuts and Jobs Act
  
  

• A brief on taxing large university endowments, an important step toward restoring fairness and fiscal responsibility in the tax code
  
  

• Comments on the Student Success and Taxpayer Savings Plan Act, which include more ways to capture savings such as expanding Gainful Employment provisions, removing short-term Pell provisions, and maintaining the 90/10 rule to protect taxpayer investment
  
  

• A proposal how Washington can cut costs without cutting health care coverage by reducing Medicare Advantage overpayments and enacting site-neutral payment reforms
  
  

• A letter urging the Centers for Medicare and Medicaid Services (CMS) to address Medicare Advantage overpayments and implement reforms to reduce waste, fraud, and abuse

This is just the beginning. Count on us to offer evidence-based policy proposals until the ink dries and then some. We would love to hear your thoughts on these ideas for reconciliation. Talk to us>

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Why Grad PLUS Loans Need Reform

Arnold Ventures released a new policy brief that examines how Grad PLUS loans are fueling unaffordable debt for students and why common-sense reforms are needed to protect them.

Unlike undergraduate student loans, Grad PLUS loans allow unlimited borrowing up to the full cost of attendance, which is determined by the institution. The price of graduate programs is directly influenced by the uncapped nature of Grad PLUS: Research has shown Grad PLUS’s unlimited loan program has increased the cost of graduate programs, without increasing access or value. 

Read our brief>

Watch our video on student loan reform>

Since becoming First Lady of Oklahoma in 2019, Sarah Stitt has led efforts to ensure incarcerated and formerly incarcerated Oklahomans have a second chance to live fulfilling and productive lives. Her commitment to rehabilitation and reentry comes from deep personal experience and convictions. Due at least in part to her efforts, and that of her husband, Governor Kevin Stitt, Oklahoma has seen reductions in its incarceration and recidivism rates in recent years.

Read our Q&A with Sarah Stitt>

Data Dive

$37 Trillion

The federal government’s gross debt in 2025

That number is up from $20 trillion in 2017, and it currently represents 123% of gross domestic product (GDP). As Congress moves forward with reconciliation, members must do both: extend tax cuts that will spur growth while also find responsible ways to pay for them to curb federal debt.

Read AV’s Top 20 Proposals to Reduce Wasteful Spending, Close Tax Loopholes, and Save Up to $4 Trillion>

Read more about responsible tax reform>

What We’re Reading

Public Finance

• In The Free Press, Gabe Kaminsky talks to Hill Republicans who knew Musk’s pledge to cut a trillion dollars from the federal budget was “a pipe dream.”

  
  

• In Politico’s 🔒 Morning Tax, Bernie Becker hails PolicyEngine’s online SALT deduction calculator as a useful tool for laying out the impacts of a SALT cap and the reach of the Alternative Minimum Tax (AMT).

  
  

• On the inaugural episode of “The Federal Drive with Terry Gerton,” AV’s Program Integrity Fellow Doug Criscitello spoke with the host about the serious funding challenges of Social Security.

Higher Education

• With the upcoming resumption of federal student loan collections May 5, the American Enterprise Institute’s Beth Akers supports the effort in The Hill while calling for levers to create a smarter, more compassionate system. “We can — and must — support struggling borrowers without dismantling the principle that student loans should ultimately be repaid.”

Criminal Justice

• In The Hill, Safer Prisons, Safer Communities members Andy Potter and Matthew Charles discuss how incarcerated people and corrections staff have more in common than people think, and why they have come together to address the growing crisis in our prisons.

  
  

• The Keene Sentinel reports that the Connecticut Department of Corrections has warned lawmakers that proposed budget cuts will exacerbate understaffing problems, necessitate reductions in rehabilitation and treatment programs, and threaten public safety.

What We’re Watching (and Listening to)

Watch or listen to Arnold Ventures’ Founder and Co-Chair John Arnold on “The Reason Interview With Nick Gillespie” talk about the role of philanthropy, government, and private markets in improving policy outcomes for the benefit of American families, communities, and businesses.

Some Final Inspiration

When 6-year-old Ruby Bridges went to first grade as the first Black student to her school in 1960, she had one friend: her teacher, Barbara Henry. Sixty years later, Bridges wrote a children’s book about the meaningful relationship they shared and what a difference a teacher can make. Watch or read this interview with Bridges and check out the book.

We’re Seeking Proposals

The Criminal Justice team has released an RFP titled “Causal Research on Community Safety and the Criminal Justice System.” The RFP seeks research proposals across all issues related to the criminal justice system and will remain open.

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