United States Senate Committee on Finance

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Senate Finance Committee
Standing committee
Active
Seal of the United States Senate.svg
United States Senate
119th Congress
History
FormedDecember 10, 1816
Leadership
Chair Mike Crapo (R)
Since January 3, 2025
Ranking member Ron Wyden (D)
Since January 3, 2025
Structure
Seats27 members
Political partiesMajority (14)
  •   Republican (14)
Minority (13)
Jurisdiction
Policy areas Children's Health Insurance Program, Customs, Deposit of public moneys, Duties, Federal trust funds, Healthcare finance, International trade, Mandatory spending, Medicare, Medicaid, National debt, Ports of entry, Public pensions, Revenue measures for territorial possessions, Revenue sharing, Social Security, Taxation, Temporary Assistance for Needy Families, Trade agreements, Unemployment insurance
Oversight authority Alcohol and Tobacco Tax and Trade Bureau, Bureau of the Fiscal Service, Centers for Medicare & Medicaid Services, Department of the Treasury, Federal Employees Retirement System, Federal Retirement Thrift Investment Board, Internal Revenue Service, Joint Committee on Taxation, Office of the United States Trade Representative, Social Security Administration, Treasury Inspector General for Tax Administration, United States Customs and Border Protection
House counterpart House Committee on Ways and Means
Meeting place
215 Dirksen Senate Office Building
Washington, D.C.
Website
www.finance.senate.gov
Rules

    The United States Senate Committee on Finance (or, less formally, Senate Finance Committee) is a standing committee of the United States Senate. The committee concerns itself with matters relating to taxation and other revenue measures generally, and those relating to the insular possessions; bonded debt of the United States; customs, collection districts, and ports of entry and delivery; deposit of public moneys; general revenue sharing; health programs under the Social Security Act (notably Medicare and Medicaid) and health programs financed by a specific tax or trust fund; national social security; reciprocal trade agreements; tariff and import quotas, and related matters thereto; and the transportation of dutiable goods. [1] It is considered to be one of the most powerful committees in Congress. [2]

    Contents

    History

    The Committee on Finance is one of the original committees established in the Senate. First created on December 11, 1815, as a select committee and known as the Committee on Finance and an [sic] Uniform National Currency, it was formed to alleviate economic issues arising from the War of 1812. On December 10, 1816, the Senate officially created the Committee on Finance as a standing committee. Originally, the committee had power over tariffs, taxation, banking and currency issues and appropriations. Under this authority the committee played an influential role in the most heated topics of the era, including numerous tariff issues and the Bank War. [3] The committee was also influential in the creation of the Department of Interior in 1849. [4] Under the leadership of William Pitt Fessenden, the committee played a decisive role during the Civil War. Appropriating all funds for the war effort as well as raising enough funds to finance the war through tariffs and the nation's first income tax. Additionally, the committee produced the Legal Tender Act of 1862, the nation's first reliance on paper currency. [5]

    In 1865 the House of Representatives created an Appropriations Committee to relieve the burden from the Committee on Ways and Means. The Senate followed this example by forming the Senate Appropriations Committee in 1867. [3]

    Despite the loss of one of its signature duties, the committee continued to play a prominent role in the major issues of the nation. The committee was at the center of the debate over the silver question in the latter half of the 19th Century. Passage of the Bland–Allison Act and the Sherman Silver Purchase Act were attempts to remedy the demand for silver, though the silver cause would eventually fail by the end of the century. [6] The committee also continued to play a role in the debate over income taxes. The repeal of the Civil War income taxes in the 1870s would eventually be raised in 1894 with the passage of a new income tax law. The Supreme Court's decision in Pollock v. Farmers' Loan & Trust Co. , 157 U.S. 429 (1895) ruled the income tax as unconstitutional, since it was not based on apportionment. The fight for an income tax finally culminated with the Payne–Aldrich Tariff Act of 1909. In order to pass the new tariff Senate leaders, including Chair Nelson Aldrich, allowed for a Constitutional Amendment to be passed. Four years later the 16th Amendment was officially ratified and in 1913 the nation's first peacetime income tax was instituted. [7]

    Around that same time the committee lost jurisdiction over banking and currency issues to the newly created Committee on Banking and Currency. The committee did gain jurisdiction over veterans’ benefits when it successfully passed the War Risk Insurance Act of 1917. The act shifted pensions from gratuities to benefits and served as one of the first life insurance programs created under the federal government. [3]

    The Finance Committee continued to play an increasingly important role in the lives of the nation's veterans. The committee helped consolidate the veteran bureaucracy by streamlining the various responsibilities into a Veterans' Bureau, which would ultimately become the Veterans' Administration. In 1924, the committee passed a "Bonus Bill" that compensated World War I veterans for their service. [8] This series of improved veteran benefits reached a crescendo in 1944 with the passage of the Servicemen's Readjustment Act. Senator Bennett "Champ" Clark, who served as the chair of the Subcommittee on Veterans, assured smooth sailing of the bill through the Senate. The bill not only ended the usual demands from returning veterans that had been seen in nearly every war the US had participated in, but also provided more generous benefits than veterans had previously received, including funds for continuing education, loans and unemployment insurance. [9]

    Not all Finance Committee legislation was as well received as the G.I. Bill. At the beginning of the Great Depression the committee passed the Smoot–Hawley Tariff Act. The act greatly increased tariffs and had a negative effect on the nation's economy. Following traditional economic practices the members of the committee, including Chair Reed Smoot, felt that protection of American businesses was required in order to buoy them during the dire economic times. The effort backfired and the economic situation worsened. The Smoot-Hawley Tariff would eventually be replaced by the Reciprocal Tariff Act of 1934 which authorized the president to negotiate trade agreements. This act not only set up the trade policy system as it exists today but also effectively transferred trade making policy from the Congress to the president. [10]

    The committee also played an important role in two major acts created under the New Deal. The committee received jurisdiction over the National Industrial Recovery Act because of tax code changes in the bill. The new bureaucracy was President Franklin D. Roosevelt's attempt to stimulate the economy and promote jobs for unemployed Americans while also regulating businesses. The National Recovery Administration would ultimately fail as it lost public support, but the act served as a springboard for the Wagner Act and the National Labor Board. [11]

    Probably the largest and most lasting pieces of legislation shaped by the Finance Committee during the New Deal was the 1935 Social Security Act. Once again, the committee received jurisdiction owing to the payroll taxes that would be enacted to pay for the new program. The act was the first effort by the federal government to provide benefits to the elderly and the unemployed, leading to enhanced economic welfare for many elderly Americans. [12]

    In 1981, a Senate Resolution required the printing of the history of the Committee on Finance. [3]

    Role

    The role of the Senate Committee on Finance is very similar to that of the House Committee on Ways and Means. The one exception in terms of authority is that the Finance Committee has jurisdiction over both Medicare and Medicaid, while the House Ways and Means Committee only has jurisdiction over Medicare. (The House Energy and Commerce Committee has jurisdiction over Medicaid.) The other difference in terms of power is that all revenue raising measures must originate in the House, giving the Ways and Means Committee a slight edge in setting tax policy.

    In addition to having jurisdiction over legislation, the Committee on Finance has extensive oversight powers. It has authority to investigate, review and evaluate existing laws, and the agencies that implement them.

    Jurisdiction

    In accordance of Rule XXV of the United States Senate, all proposed legislation, messages, petitions, memorials, and other matters relating to the following subjects are referred to the Senate Committee on Finance:

    1. Bonded debt of the United States, except as provided in the Congressional Budget Act of 1974;
    2. Customs, collection districts, and ports of entry and delivery;
    3. Deposit of public moneys;
    4. General revenue sharing;
    5. Health programs under the Social Security Act and health programs financed by a specific tax or trust fund;
    6. National social security;
    7. Reciprocal trade agreements;
    8. Revenue measures generally, except as provided in the Congressional Budget Act of 1974;
    9. Revenue measures relating to the insular possessions;
    10. Tariffs and import quotas, and matters related thereto; and,
    11. Transportation of dutiable goods. [1]

    Given its broad remit with regards to taxation, mandatory spending, international trade, Social Security, Temporary Assistance to Needy Families, interest on the national debt, and healthcare finance—including Medicare, Medicaid, and the Children's Health Insurance Program—the Senate Committee on Finance is arguably one of the most influential standing committees in either house of Congress. [13] [14] A wide array of senators with differing policy interests seek membership on the committee due to its broad role in setting fiscal, tax, trade, health, and social policy.

    Members, 119th Congress

    Majority [15] Minority [16]

    Subcommittees

    Subcommittee [18] ChairRanking Member
    Energy, Natural Resources, and Infrastructure James Lankford (R-OK) Maria Cantwell (D-WA)
    International Trade, Customs, and Global Competitiveness John Cornyn (R-TX) Raphael Warnock (D-GA)
    Health Care Todd Young (R-IN) Maggie Hassan (D-NH)
    Social Security, Pensions, and Family Policy Chuck Grassley (R-IA) Bernie Sanders (I-VT)
    Taxation and IRS Oversight John Barrasso (R-WY) Michael Bennet (D-CO)
    Fiscal Responsibility and Economic Growth Ron Johnson (R-WI) Tina Smith (D-MN)

    Committee leadership

    Former chairs and ranking members are below. [19] [20]

    Chairs

    NamePartyStateStartEnd
    George Campbell Democratic-Republican Tennessee18151818
    John Eppes Democratic-Republican Virginia18181819
    Nathan Sanford Democratic-Republican New York18191821
    John Holmes Democratic-Republican Maine18211822
    Walter Lowrie Democratic-Republican Pennsylvania18221823
    Samuel Smith Democratic-Republican
    (1823–1824)
    Maryland18231832
    Crawford Democratic-Republican
    (1824–1825)
    Jacksonian
    (1825–1832)
    John Forsyth Jacksonian Georgia18321833
    Daniel Webster Anti-Jacksonian Massachusetts18331836
    Silas Wright Jacksonian
    (1836–1837)
    New York18361841
    Democratic
    (1837–1841)
    Henry Clay Whig Kentucky1841
    George Evans Whig Maine18411845
    Levi Woodbury Democratic New Hampshire1845
    John Calhoun Democratic South Carolina18451846
    Dixon Lewis Democratic Alabama18461847
    Charles Atherton Democratic New Hampshire18471849
    Daniel Dickinson Democratic New York18491850
    Robert Hunter Democratic Virginia18501861
    James Pearce Democratic Maryland1861
    William Fessenden Republican Maine18611864
    John Sherman Republican Ohio18641865
    William Fessenden Republican Maine18651867
    John Sherman Republican Ohio18671877
    Justin Morrill Republican Vermont18771879
    Thomas Bayard Democratic Delaware18791881
    Justin Morrill Republican Vermont18811893
    Daniel Voorhees Democratic Indiana18931895
    Justin Morrill Republican Vermont18951898
    Nelson Aldrich Republican Rhode Island18981911
    Boies Penrose Republican Pennsylvania19111913
    Furnifold Simmons Democratic North Carolina19131919
    Boies Penrose Republican Pennsylvania19191921
    Porter McCumber Republican North Dakota19211923
    Reed Smoot Republican Utah19231933
    Pat Harrison Democratic Mississippi19331941
    Walter George Democratic Georgia19411947
    Eugene Millikin Republican Colorado19471949
    Walter George Democratic Georgia19491953
    Eugene Millikin Republican Colorado19531955
    Harry Byrd Democratic Virginia19551965
    Russell Long Democratic Louisiana19651981
    Bob Dole Republican Kansas19811985
    Bob Packwood Republican Oregon19851987
    Lloyd Bentsen Democratic Texas19871993
    Pat Moynihan Democratic New York19931995
    Bob Packwood Republican Oregon1995
    Bill Roth Republican Delaware19952001
    Max Baucus Democratic Montana2001 [21]
    Chuck Grassley Republican Iowa2001 [21]
    Max Baucus Democratic Montana2001 [22] 2003
    Chuck Grassley Republican Iowa20032007
    Max Baucus Democratic Montana20072014
    Ron Wyden Democratic Oregon20142015
    Orrin Hatch Republican Utah20152019
    Chuck Grassley Republican Iowa20192021
    Ron Wyden Democratic Oregon20212025
    Mike Crapo Republican Idaho2025present

    Ranking Members

    NamePartyStateStartEnd
    Walter George Democratic Georgia19471949
    Eugene Millikin Republican Colorado19491953
    Walter George Democratic Georgia19531955
    Eugene Millikin Republican Colorado19551957
    Edward Martin Republican Pennsylvania19571959
    John Williams Republican Delaware19591970 [23]
    Wallace Bennett Republican Utah19701974 [24]
    Carl Curtis Republican Nebraska19751979
    Bob Dole Republican Kansas19791981
    Russell Long Democratic Louisiana19811987
    Bob Packwood Republican Oregon19871995
    Pat Moynihan Democratic New York19952001
    Chuck Grassley Republican Iowa2001 [21]
    Max Baucus Democratic Montana2001 [21]
    Chuck Grassley Republican Iowa2001 [22] 2003
    Max Baucus Democratic Montana20032007
    Chuck Grassley Republican Iowa20072011
    Orrin Hatch Republican Utah20112015
    Ron Wyden Democratic Oregon20152021
    Mike Crapo Republican Idaho20212025
    Ron Wyden Democratic Oregon2025present

    Historical committee rosters

    118th Congress

    Majority [15] Minority [16]
    Subcommittees
    Subcommittee [25] ChairRanking Member
    Energy, Natural Resources, and Infrastructure Debbie Stabenow (D-MI) James Lankford (R-OK)
    International Trade, Customs, and Global Competitiveness Tom Carper (D-DE) John Cornyn (R-TX)
    Health Care Ben Cardin (D-MD) Steve Daines (R-MT)
    Social Security, Pensions, and Family Policy Sherrod Brown (D-OH) Thom Tillis (R-NC)
    Taxation and IRS Oversight Michael Bennet (D-CO) John Thune (R-SD)
    Fiscal Responsibility and Economic Growth Maggie Hassan (D-NH) Chuck Grassley (R-IA)

    117th Congress

    MajorityMinority
    Subcommittees
    SubcommitteeChairRanking Member
    Energy, Natural Resources, and Infrastructure Debbie Stabenow (D-MI) James Lankford (R-OK)
    International Trade, Customs, and Global Competitiveness Tom Carper (D-DE) John Cornyn (R-TX)
    Health Care Ben Cardin (D-MD) Steve Daines (R-MT)
    Social Security, Pensions, and Family Policy Sherrod Brown (D-OH) Thom Tillis (R-NC)
    Taxation and IRS Oversight Michael Bennet (D-CO) John Thune (R-SD)
    Fiscal Responsibility and Economic Growth Maggie Hassan (D-NH) Chuck Grassley (R-IA)

    116th Congress

    MajorityMinority
    Subcommittees
    SubcommitteeChairRanking Member
    Energy, Natural Resources, and Infrastructure Tim Scott (R-SC) Michael Bennet (D-CO)
    Fiscal Responsibility and Economic Growth Bill Cassidy (R-LA) Maggie Hassan (D-NH)
    Health Care Pat Toomey (R-PA) Debbie Stabenow (D-MI)
    International Trade, Customs, and Global Competitiveness John Cornyn (R-TX) Bob Casey Jr. (D-PA)
    Taxation and IRS Oversight John Thune (R-SD) Mark Warner (D-VA)
    Social Security, Pensions, and Family Policy Rob Portman (R-OH) Sherrod Brown (D-OH)

    Source [26]

    115th Congress

    MajorityMinority

    References

    1. 1 2 "Jurisdiction". The United States Senate Committee on Finance. 1887. Retrieved May 31, 2019.PD-icon.svg This article incorporates text from this source, which is in the public domain .
    2. Faler, Brian (November 2, 2014). "The rise of Ron Wyden". Politico. Retrieved June 11, 2023.
    3. 1 2 3 4 "History of the Committee on Finance United States Senate". Government Printing Office.
    4. Simms, Henry Harrison. Life of Robert M.T. Hunter: A Study in Sectionalism and Secession. Richmond: William Byrd Press, 1935
    5. Jellison, Charles A. Fessenden of Maine, Civil War Senator. Syracuse: Syracuse University Press, 1962.
    6. Sherman, John. Recollections of Forty Years in The House, Senate, and Cabinet: An Autobiography. 2 vols. 1895. Reprint. New York: Greenwood Press, 1968.
    7. Stephenson, Nathaniel W. Nelson W. Aldrich: A Leader In American Politics. 1930. Reprint. New York: Kennikat Press, 1971.
    8. The Provision of Federal Benefits for Veterans. House Committee Print 171, 84th Congress, 1st Session, December 28, 1955
    9. Bennett, Michael. When Dreams Come True: The G.I. Bill and the Making of Modern America. Washington: Potomac Books, Inc., 1999.
    10. Dobson, John. Two Centuries of Tariffs: The Background and Emergence of the U.S. International Trade Commission. Washington:U.S. Government Printing Office, 1976.
    11. Ratner, Sidney. Taxation and Democracy in America. Octagon Books, 1980.
    12. Swain, Martha H. Pat Harrison: The New Deal Years. Jackson: University Press of Mississippi, 1978.
    13. "Powerful Senate committee invites pharma executives to testify". Reuters. February 4, 2019 via www.reuters.com.
    14. "Senate Committee on Finance". GovTrack.us.
    15. 1 2 S.Res. 30 (118th Congress)
    16. 1 2 S.Res. 31 (118th Congress)
    17. Independent Senator caucusing with the Democrats
    18. "Crapo, Wyden Announce Senate Finance Subcommittee Assignments". United States Senate Committee on Finance. February 3, 2025.
    19. "Membership of the United States Senate Committee on Finance (By Congress and Session)". United States Senate Committee on Finance. Archived from the original on February 25, 2016. Retrieved September 20, 2025.
    20. Nelson, Garrison; Mitchell, Mary; Bensen, Clark (1993). Committees in the U.S. Congress, 1947–1992. Vol. 1. Washington, D.C.: Congressional Quarterly. pp. 133–144.
    21. 1 2 3 4 At the beginning of the 107th Congress in January 2001 the Senate was evenly divided. With a Democratic president and vice president still serving until January 20, the Democratic vice president was available to break a tie, and the Democrats thus controlled the Senate for 17 days, from January 3 to January 20. On January 3 the Senate adopted S. Res. 7 designating Democratic senators as committee chairs to serve during this period and Republican chairs to serve effective at noon on January 20, 2001.
    22. 1 2 On June 6, 2001, the Democrats took control of the Senate after Senator James Jeffords (VT) switched from the Republican Party to Independent and announced that he would caucus with the Democrats.
    23. Resigned December 31, 1970.
    24. Resigned December 20, 1974.
    25. "Wyden, Crapo Announce Senate Finance Subcommittee Assignments". United States Senate Committee on Finance. February 9, 2023. Retrieved March 9, 2024.
    26. "The United States Senate Committee on Finance". www.finance.senate.gov. Retrieved February 11, 2017.