Republicans Return to Reconciliation Negotiations After Memorial Day Recess

By Kim Johnson, NLIHC Senior Director of Policy 

Congressional Republicans are expected to continue negotiations this week over a second reconciliation package, dubbed “Reconciliation 2.0,” that would provide nearly $72 billion for Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP). Republicans in the Senate had hoped to pass the bill before the Memorial Day recess and send it to the House for consideration, with the goal of finalizing and sending the bill to the president for his signature by June 1. However, internal disagreements over certain provisions have delayed the process, forcing Senate Majority Leader John Thune (R-SD) and House Speaker Mike Johnson (R-LA) to delay votes.  

Budget reconciliation is a special legislative procedure that allows bills to pass the Senate with a simple majority of 51 votes instead of the 60 votes usually required in the chamber. When one party controls the House, Senate, and White House, reconciliation can be used to enact a bill into law without any support from the minority party. In exchange for this procedural leniency, the kind of provisions that can be included in a reconciliation bill are limited to those that change federal spending, revenues, and/or the federal debt limit; provisions that fall outside of these limits cannot be included, or they will be subjected to the usual 60-vote threshold for enactment. Republicans used reconciliation to enact H.R.1, the “One Big Beautiful Bill Act,” into law last year.  

Senate Republicans are deeply divided over whether to include guardrails or other restrictions on the Trump administration’s proposed $1.8 billion “anti-weaponization” fund, which would provide legal compensation for people who believe they were “victims of lawfare and weaponization” by the Department of Justice under the Biden administration.  

Vote Delay Highlights Difficult Path Forward for “Reconciliation 3.0”  

Even while debate over a second reconciliation bill continues, some congressional Republicans are also calling for a third and final reconciliation bill to be enacted before the end of the year. While it is not yet clear what would be included in a third reconciliation bill, some House Republicans have pushed for provisions to address the growing affordability crisis, while others are pushing for additional cuts to safety net programs that would help offset the costs of the second reconciliation bill. The complex rules of reconciliation help protect HUD programs from spending cuts, but many of the same families who receive assistance from other safety net programs also struggle with housing stability; a reduction in assistance that helps families afford the cost of food, medical care, and other necessities will also impact their ability to afford the cost of rent.