House Budget Committee Chairman Jodey Arrington, R-Texas, said Wednesday that Republicans are preparing a second budget reconciliation package to fund President Trump's Iran military campaign while offsetting the cost through anti-fraud provisions in social services programs.
The announcement marks the end of months of speculation about whether House Republicans would attempt to pass a second GOP-only megabill through Congress before November's midterm elections. Arrington said his committee is nearly ready to mark up a budget resolution.
The Trump administration has floated a $200 billion request to help pay for the war in Iran but has yet to deliver a formal budget request to Congress. Republicans have zeroed in on fraud in social services as the primary offset mechanism.
What the Left Is Saying
Democrats are expected to oppose any defense supplemental funding, and some have raised concerns that using fraud prevention as a offset could justify cuts to programs serving low-income Americans. The party's opposition to Trump's agenda has been consistent throughout the session.
The SAVE America Act, which includes proof of citizenship requirements for voting and voter ID mandates, has stalled in the Senate due to widespread Democratic opposition. While Arrington did not rule out including elements of the election bill in a second reconciliation package, its sweeping provisions may face challenges meeting reconciliation's stringent budget requirements.
Progressive lawmakers have argued that fraud in social programs is far less prevalent than Republicans suggest, and that using anti-fraud provisions to justify military spending could disproportionately harm vulnerable populations.
What the Right Is Saying
Arrington framed the reconciliation effort as a way to address multiple priorities simultaneously while avoiding adding to the national debt.
"It's an opportunity to solve two problems and address two challenges and advance two great causes: fund the military, provide a strong defense, win the war, achieve the objectives and do it in a way that doesn't put our kids further in the hole," Arrington told reporters.
Rep. August Pfluger, R-Texas, said Democrats' opposition to Trump's agenda has left Republicans with no choice but to use reconciliation. "Democrats have obstructed everything," Pfluger told Fox News Digital. "So, we believe, unfortunately, that reconciliation is the only mechanism to move the rest of the President's agenda."
Senate Budget Committee Chairman Lindsey Graham, R-S.C., announced Wednesday that his panel would begin drafting reconciliation instructions. After meeting with Arrington, Graham posted on X: "Let's put it this way: The reconciliation train is leaving the station."
Graham said the Senate panel is considering funding increases for the military and law enforcement, along with voter integrity measures, as possible items in a second reconciliation bill.
House Speaker Mike Johnson, R-La., who has long pushed for a second budget bill, said he was encouraged by Graham's move. "I'm glad to know the Senate is interested in reconciliation 2.0," Johnson said. "I have been a broken record. We need to do that. It's an important legislative tool."
What the Numbers Show
The Trump administration has floated a $200 billion request for Iran war funding, though no formal request has been submitted to Congress.
Republicans narrowly passed the One Big Beautiful Bill Act in June 2025 after months of intraparty disagreement. The party holds a razor-thin majority, meaning Speaker Johnson can afford to spare just one GOP defection in any party-line vote.
The budget reconciliation process allows Republicans to bypass the Senate's 60-vote requirement and pass spending measures with a simple majority. This is the mechanism Republicans used to pass their first major bill and are now planning to use again.
The Bottom Line
The success of a second reconciliation package will depend on whether Republicans can maintain party unity around the Iran war funding as the unifying cause. Arrington argued that supporting troops in a time of war should overcome partisan divisions, saying he cannot think of a reason why members would not support funding for the military.
Key obstacles remain: the SAVE America Act's provisions may not meet budget reconciliation rules, and some Republicans may balk at using fraud-related spending cuts as offsets. The party will need to navigate these internal divides while moving quickly before the November midterm elections.
If Republicans can pass the measure, it would represent the second major budget bill advanced through reconciliation this session, signaling a significant shift in how Congress appropriates funds for both defense and domestic priorities.