The Senate is in session this week while the House has a scheduled district work period, with House Republicans out for their annual legislative retreat. The most pressing legislative concerns remain the military conflict in Iran and resolving the ongoing funding lapse for the Department of Homeland Security, which has been operating without appropriations since January 31.
The House Republican retreat this week offers an important look at a potential reconciliation package to advance more of the Trump administration priorities. House Speaker Mike Johnson (R-LA) is one of the strongest proponents of advancing another reconciliation package. The retreat will be the most significant forum thus far for lawmakers to express their opinions both on the interest in moving forward with a package as well as the potential legislative and policy focus of a package. House Budget Committee Chair Jodey Arrington (R-TX) is expected to present potential budget cuts targeting “waste, fraud and abuse.”
The budget reconciliation process allows Congress to advance legislation with budgetary impacts once per fiscal year with only a simple majority required in both chambers; therefore, with Republicans still controlling both chambers by very slim margins, they could advance another partisan package without needing any Democratic votes for passage. The One Big Beautiful Bill Act (OBBBA), signed into law last July, used the most recent budget reconciliation vehicle, another vehicle remains available through September 30, 2026.
Budget reconciliation packages are often used to fix unintended consequences or areas of disagreement that went unresolved in other legislative packages. Because the process for the OBBBA was relatively rushed, with little committee debate or back-and-forth or compromise between the differing factions in the Republican party, another reconciliation package may offer a needed opportunity to address issues from the OBBBA, including tax policies and the dramatic changes to the Medicaid program that are set to take effect this coming January.
The process for advancing a reconciliation package is multi-pronged. The House and Senate must first pass identical budget resolutions to formally begin the process, then find consensus to provide the specific instructions for each committee to draft the legislative text for the reconciliation bill. The committees would then draft and negotiate the legislative text to be advanced to the floor of each chamber, with a final (and identical) legislative package passed by both chambers. For the OBBBA, the two chambers initially passed significantly differing budget resolutions that disagreed both in process and policy, before a final budget and then a final package coalesced.
Argentum is closely monitoring the potential reconciliation package and opportunities to advance our policy priorities that were not included in the OBBBA. This includes the Credit for Caring Act to provide a $5,000 tax credit for long-term care expenses, and tax policies around Health Savings Accounts, Flexible Spending Accounts, and 529 education savings plans that could be modified to help more Americans access tax-advantaged funds for long-term care. We will also remain vigilant against any potential cuts to existing programs or other threats to senior living.