WASHINGTON, D.C. — U.S. Senator James Lankford says months of behind-the-scenes work on tax policy is moving closer to results, with a major proposal expected by the end of July. However, ongoing negotiations between the House and Senate—and even within each chamber—are still needed to finalize the package.

“The first step is making sure tax rates don’t go up,” Lankford said. “If nothing gets passed this year, taxes will automatically rise across every income bracket. Every single Oklahoman would see higher taxes.”

Lankford emphasized that small businesses would be especially vulnerable, facing steep tax increases unless Congress acts. One key priority for the senator is restoring “bonus depreciation” or full expensing—allowing businesses to deduct major purchases like equipment or vehicles in the year they’re made, rather than spreading the cost over several years.

“Small business owners shouldn’t have to borrow money just to pay taxes on equipment they bought to keep their operations running,” Lankford said. “That’s wrong, and we’re working to fix it.”

He also highlighted the importance of preserving the full value of the child tax credit, which is set to be cut in half next year without legislative action. In addition, he raised concerns about limits on charitable deductions that are impacting nonprofits. “We’re doing the work now so we can act before July ends,” he added.

Trade Talks with the UK Get New Life Under President Trump

Turning to international trade, Lankford praised the renewed push by President Donald Trump to reengage with the United Kingdom on long-stalled trade negotiations.

“Countries are lining up to engage with our administration and break down trade barriers that have existed for decades,” he said. Lankford explained that efforts to create a U.S.–UK trade agreement began during President Trump’s first term following Brexit but stalled during the Biden administration.

“Now, with President Trump back in office, there’s fresh momentum. He’s putting pressure on the UK to return to the table, and that’s moving things forward,” Lankford noted. “It’s just a framework for now, but it’s a significant first step.”

For Oklahoma, the potential trade deal has real impact. The UK has long blocked many agricultural products from the state, despite years of advocacy. “I’ve personally met with their leadership to push for better market access for Oklahoma farmers,” Lankford said. “This progress opens the door to new markets and new opportunities.”

With tax reform and trade talks both advancing, Lankford remains optimistic that 2025 will bring meaningful policy wins for Oklahoma families, businesses, and agricultural producers.