House GOP to Pursue Second Reconciliation Bill

House Republican leaders are considering pursuing a second budget reconciliation package this year following discussions at a recent leadership retreat in Florida. However, significant questions remain about what policies the package would include and how lawmakers would offset its cost.

Speaker Mike Johnson (R-LA) expressed optimism that Republicans can find consensus within the conference on the contours of a second fast-track bill, noting leaders are working to identify areas of overlap among members’ priorities. At the same time, other GOP leaders have expressed skepticism about whether the conference has the political will to assemble another major package ahead of the election.

A key hurdle is how to pay for the legislation. Fiscal conservatives are expected to demand that any new spending or tax provisions be fully offset, while moderates may resist deep spending cuts. House Majority Leader Steve Scalise (R-LA) acknowledged that agreement on potential offsets has yet to emerge.

"The offsets are the areas that are hard to get agreement," Scalise told Punchbowl News. "And we don’t have any agreement on those yet. But we’re trying to find consensus amongst our members."

Meanwhile, Ways and Means Committee Chair Jason Smith (R-MO) has voiced skepticism about pursuing a second reconciliation package, reiterating his view that there was likely only enough political momentum for one major bill this Congress.

"I’ve said it all along that we need one big reconciliation [bill] because I didn't see a path that there was enough juice for two, and I still stand by that," Smith said.

For associations and other tax-exempt organizations, any additional reconciliation effort could present another vehicle for tax policy changes, making the issue one to watch in the months ahead.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.