WASHINGTON — Republicans are advancing a new party-line reconciliation bill, dubbed 'Reconciliation 3.0,' to boost defense spending and cut domestic programs before the November midterms. The proposed legislation aims to increase Pentagon spending by hundreds of billions of dollars while offsetting costs through reductions elsewhere, which GOP leaders describe as targeting government waste and fraud.

Speaker of the House Mike Johnson and Majority Leader Steve Scalise have been meeting with committee and caucus chairs to identify proposals with strong Republican backing. Johnson said the bill would be smaller in scope than previous efforts: "It will be just as beautiful, but not as big, so it’ll have less provisions and less things to get everybody to yes on."

House Budget Committee Chairman Jodey Arrington emphasized the bill’s focus on military support and fiscal discipline. "This one, I think you’ll have potentially money to support our troops in conflict," he said. Arrington also called for tightening rules on the earned income tax credit and prohibiting undocumented immigrants from living in housing financed by a federal tax credit.

The Trump administration has urged Republicans to allocate $350 billion to defense through the reconciliation process. Lawmakers are also considering reviving proposals previously rejected by the Senate parliamentarian, including one that would bar states from using Medicaid funds to cover undocumented immigrants.

Democrats warn the bill could harm vulnerable populations and jeopardize vulnerable Republican incumbents. Brendan Boyle, lead Democrat on the House Budget Committee, said the political calculus has shifted since last year’s tax and spending bill passed. "I think it will be for a couple of reasons. First is the president’s approval rating. He was at a much higher level a year ago than he is right now," Boyle said. He added, "Number 2, we are much closer to the November midterm elections. So, if you’re one of a dozen or a couple dozen House Republicans who are really vulnerable in a swing district, you have to think even more carefully about voting for something that has even more health care cuts in it."

The House is expected to remain in session for about 24 more days before its August recess. Passing a budget blueprint in both chambers remains the first procedural step toward enacting any reconciliation bill.