Reconciliation is Back, and Everything is in Play

Republicans are kickstarting another reconciliation package, which means everything is back on the table. While some elements are likely to be included, such as SAVE America Act provisions that meet budget rules and funding tied to Iran, major questions remain.

Reconciliation is one of the few opportunities for the party in power to move a wide range of priorities in a single vehicle. This reconciliation process is no different. While the Senate Byrd Bath requires that all provisions must pertain to the budget, there are many creative ways to implement policy through funding decisions.

Given the commitment from both chambers to engage in this process, stakeholders should be engaging now with aligned Republican offices to elevate their priorities.  If proposals were considered but left on the table during the One Big Beautiful Bill Act, it could provide an easier path to consideration. Expect offices to ask organizations to consider pay-fors when bringing funding requests to the process. Unlike the last process, funding options will be harder to find.

At the same time, stakeholders should be watching the process carefully to make sure the programs they care about are not on the chopping block to offset other priorities. We expect deficit hawks to require the party to find a pay-for, which means committees will be charged with finding those offsets across the federal government. With narrow margins in both chambers, securing a champion early will be critical to protecting programs from cuts or unfavorable legislative language.

The reconciliation process will be an intense legislative period, and stakeholders will need to monitor closely to advocate for their priorities to be included as well as protect their priorities against cuts or adverse legislative text.