Good afternoon, friends:
For the past 100 days since President Donald J. Trump’s inauguration, Congressional Republicans have been working to advance a budget reconciliation package aligned with his top policy priorities, including tax cuts, energy initiatives, and increased spending on national defense and border security. Both chambers have now reached agreement on a concurrent budget resolution, setting the stage for the next phase of the budget reconciliation process.
The agreed-upon framework, which was deemed the “one big, beautiful bill” by President Trump, originated in the House of Representatives and was later amended and passed by the Senate on April 5. After an intense whip operation led by House Speaker Mike Johnson (R-LA-4) and supported by the President, the House narrowly approved the amended resolution on April 10 in a 216–214 vote.
With the resolution now adopted by both chambers, the budget reconciliation process moves into its second phase. As Congress returns from a two-week Easter/Passover recess, House committees will begin marking up their individual components of the reconciliation bill—offering lawmakers a critical opportunity to shape spending priorities within the broader framework. The House Judiciary, Homeland Security, and Armed Services Committees are all scheduling markups for their portions of legislation for this week. The House Energy and Commerce Committee is targeting its markup for the week of May 5. House Ways and Means is eyeing a two-day markup for May 12 and 13.
However, internal GOP divisions persist. Fiscal conservatives in the House remain focused on deeper cuts, while more moderate Republicans are raising issues over potential impacts on entitlement programs, specifically cuts to Medicaid. The disagreements are to the tune of trillions of dollars in policy differences. A recent letter from a dozen Republicans to House leaders, including Energy and Commerce Committee Chair Brett Guthrie (R-KY-2), expressed firm opposition to Medicaid reductions, prompting leadership assurances that reforms will target only fraud and waste.
While the House is focused on spending cuts, the Senate is prioritizing tax cuts. Both chambers will need to pass the same budget reconciliation bill, meeting identical budget directives. This will require careful handling by House Speaker Johnson and Senate Majority Leader John Thune (R-SD) given the competing priorities and thin majorities in both chambers.
Looking ahead, the reconciliation debate will likely dominate the Congressional agenda through at least July.
Our team will be closely tracking these developments and will provide updates as the process unfolds.
Sincerely,
The Bridge Team