House GOP introduced a framework on Tuesday for a second “big, beautiful bill.” They claim this package could reduce the federal deficit by over $1 trillion while strengthening parts of President Donald Trump’s agenda that lawmakers believe are at risk of being reversed.
The Republican Study Committee, the largest caucus of the House GOP, released the outline. Committee chair Rep. x of Texas and House Budget Committee Chair Jodey Arrington of Texas presented it. The document outlines proposals on housing, health care, energy policy, and cuts to what Republicans define as wasteful spending. This effort aims to follow up on last year’s party-line reconciliation law.
Arrington, during the rollout, called a second reconciliation package “the most powerful legislative tool we have to fix what’s broken.”
Pfluger stated that the committee’s goal is to continue pushing a legislative agenda focused on costs and fiscal policy. “Texans are tired of excuses from Washington. They want lower prices, less government, and real results,” Pfluger said in a press release, describing the framework as “a bold roadmap” for the next reconciliation bill.
In a separate report about the plan, Pfluger told reporters that passing another reconciliation bill is essential for Republicans. “It would be political malpractice if we did not pursue a reconciliation 2.0 plan,” he noted.
Alongside members of @RepublicanStudy, we unveiled the framework for a second reconciliation bill to lower energy, housing, and health care costs. It’s time to build on the progress from the Working Families Tax Cuts, and the clock is ticking.
We owe it to the next generation… pic.twitter.com/jD9aBixGXD
— Rep. August Pfluger (@RepPfluger) January 14, 2026
Republicans are presenting this new effort as a way to build on the “One Big Beautiful Bill Act,” the reconciliation measure Trump signed last year. The Congressional Budget Office estimated that this law would increase the unified budget deficit by $3.4 trillion from 2025 to 2034, a figure Democrats continue to use to argue that the party’s fiscal claims do not match the reality.
The renewed focus on the deficit coincides with the Treasury Department’s report of a $145 billion federal budget deficit for December. This figure is up 67% from the previous year. The increase was driven by record spending due to shifts in benefit payments and rising military expenses, according to Reuters.
Meanwhile, Bloomberg reported that the U.S. budget deficit for the 2025 calendar year dropped to $1.67 trillion, the smallest in three years, aided by a rise in customs revenue linked to tariffs.
The Republican Study Committee’s framework includes proposals aimed at increasing homeownership access, reducing prescription drug costs, and expanding care availability. It also addresses energy and regulatory policies that conservatives argue contribute to household expenses.
On energy and the environment, the plan contains numerous provisions, including permitting changes and regulatory rollbacks, as reported by E&E News.
This framework is not a complete bill, and its future is unclear. E&E News reported that while House Speaker Mike Johnson and other GOP leaders have shown interest in another party-line package, some key committee leaders are hesitant, and Trump has stated that Republicans “don’t need” a second reconciliation bill.
Despite this, Arrington emphasized that Republicans should act swiftly, presenting the second reconciliation push as the logical next step following last year’s law.
