President Donald Trump's proposed tax overhaul could face delays once again as the administration and Congress focus on the devastating impact from Hurricane Harvey, CNBC's Jim Cramer said Tuesday.
The White House said the president is expected to visit Harvey-devastated areas of Texas on Tuesday as the disaster unfolds on an epic scale, with the nation's fourth-largest city mostly paralyzed.
"Doesn't this once again delay the idea that they can spend time on tax reform?" Cramer said on "Squawk on the Street." "If it's a Katrina-like event, it's all hands on deck."
In an interview with the Financial Times published last week, Trump's chief economic advisor, Gary Cohn, said the president will begin a campaign for tax reform Wednesday in Missouri. It's unclear if that may be shifted due to the storm.
Cohn added that the administration does not have a "fixed or detailed plan for tax reform" and will leave it to the congressional committees to finalize the legislation.
Trump on Monday promised federal assistance to parts of Texas and asked Congress to move quickly on a multibillion-dollar recovery package as the government has indicated it could run out of funds in the next few weeks.
"There could be a gigantic rebuild," Cramer said. If there is a massive rebuild, Cramer said that could spur economic growth.
"Three or fourth months from now, we will be talking about maybe even a GDP expansion, if the president goes down there and says he's going to have the greatest rebuild in history," Cramer said. "But will the Congress let him spend that money?"
Cramer added: "The president has to go down there and say this is the greatest reconstruction in history because the president is given to hyperbole ... and that's going to require money. But where's the money coming from?"
— The Associated Press contributed to this report.
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