Alabama congressional Republicans celebrated a new reconciliation package proposal unveiled by the U.S. House Republican Study Committee on Tuesday.
The framework for the bill, dubbed “Reconciliation 2.0” by House Republicans, was released by the study committee Tuesday morning.
The proposal, which would cut government spending by $1.6 trillion, seeks to advance budgetary priorities set forward by the One Big Beautiful Bill Act, and includes a slew of policy recommendations that Republican lawmakers say will cut healthcare and housing costs while reducing “wasteful spending.”
“The Republican Study Committee is calling on congressional Republicans to immediately begin developing the next reconciliation bill,” the document reads. “As Democrats mount an all-out campaign to obstruct and delay the conservative legislative agenda, Republicans must seize on the opportunity to make real progress on behalf of the American people through the budget reconciliation process.”
Study committee member, U.S. Rep. Robert Aderholt, R-Alabama, championed the proposal during a press conference held by the study commission on Tuesday.
“Republicans are working to deliver for the American family, and ‘Reconciliation 2.0’ does just that,” Aderholt said.
The congressman described the framework as “the best opportunity to secure more conservative wins, codify more president’s executive orders and cut more of wasteful spending that was started under the previous administration.”
He went on to cite several provisions he described as “important” to the work of the House Values Team, which he chairs.
Aderholt endorsed the bill’s provisions of the bill which would eliminate the requirement that both parents work in order to be eligible for the Child Dependent Care Tax Credit, revise 401(k) contribution maximums, make the ban on abortion providers receiving federal funding enacted by the OBBBA permanent, bar the use of Medicaid ACA tax credits for ‘gender transition’ procedures and elective abortions and establish an excise tax on higher education institutions that “allow men to participate in female sports.”
“By the way, the defunding of the abortion funding was one of the biggest victories that was included in the first reconciliation bill, but that provision lapses on July 4 of 2026, unless we act,” Aderholt said.
Tax provisions in the proposal include provisions to repeal the federal estate tax, which is projected to result in a $281 billion reduction in government revenue over the next decade and eliminate the capital gains tax on the sale of homes to first-time homebuyers and the sale of rental homes to tenants, projected to reduce revenue by $126 billion by 2036.
The framework additionally includes statutes to establish “The Don” mortgage payment program, which will include “zero-to-low-down payment” mortgage options for “creditworthy borrowers,” and to reform the ACA’s subsidy structure to send funds for enrollees directly to consumers in “Health Freedom Accounts” rather than through tax credits used by enrollees to help pay insurance company rates.
The proposal also calls for an expansion of language in the OBBBA, to make all non-citizens, including lawful permanent residents, ineligible for Medicaid, Supplemental Nutrition Assistance Program benefits, housing assistance, or “other forms of government benefits.”
U.S. Rep. Gary Palmer, R-Alabama, took to social media Tuesday to endorse the proposal, thanking the study and chair Rep. August Pfluger, R-Texas, who he said put together“ the framework for a second reconciliation bill that continues to put the American people first.”
Palmer highlighted the framework’s inclusion of legislation he fronted last year, which would create a new “parallel” health insurance marketplace separate from the one established by the Affordable Care Act.
According to the framework, nearly 70 percent of its recommended provisions have been previously introduced in legislation by House Republicans.
The representative claimed establishing a parallel marketplace would help reduce healthcare costs.
“Advancing policies like the New Health Options Act will lower premiums and make health care more affordable!” Palmer wrote.
Last week, during an appearance on the radio program “Joey Clark Live,” Palmer celebrated that his legislation’s planned inclusion in the reconciliation bill means it must only receive a simple majority vote in the Senate to pass.
“Right now, I believe we’re gonna do it through another reconciliation package, so we can pass this without any Democrat support,” Palmer said.
“This will be just a beautiful bill, not a big one,” Palmer said when asked by Clark if the bill will resemble last year’s reconciliation package.
