Go Big on Reconciliation, Congress

Democrats are on track to flip nine Senate seats and will take the House by a massive margin. Lame-duck Republicans have about six weeks before losing power for the foreseeable future. Now is the time for Republicans to deliver on their promises to voters, giving the Democrats a goodbye present on their way out. It’s time for the GOP to go big.

The incoming congressional majorities have no reason to cooperate in this, but their cooperation is not necessary if Republicans pass a budget reconciliation bill. Through budget reconciliation, a bill only needs a simple majority to pass in the Senate, which the Republicans have for 51 more days. Any provision in the bill must be budgetary and exclude Social Security, but even so, the GOP can still pass significant legislation before Congress’ term expires—without using the nuclear option of ending the filibuster.

Earlier this week, the House Freedom Caucus released a letter to congressional leaders asking for a reconciliation bill that funds defense to limit Democratic leverage in future negotiations with the president, expands health savings accounts to lower health care costs, and reduces federal spending by over $1 trillion. We suggest the following items be included in the reconciliation bill to both save substantial dollars and limit Democrats from inflicting further damage on taxpayers.

First, reconciliation can include the Trump administration’s recent regulatory proposal to limit broad-based categorical eligibility (BBCE) in the Supplemental Nutrition Assistance Program (or “food stamps”). The administration estimates the proposed rule would save $45 billion over five years, suggesting savings of $100 billion over the 11-year period from 2027 through 2037. BBCE allows states to provide food stamps to recipients who have not directly demonstrated need and was proposed earlier this year as a reconciliation option in the Heritage report “Setting the American Opportunity Agenda.”

While they are at it, Congress should tip its hat to MAHA and institute a ban on using food stamps on soda, candy, and energy drinks. This is simple and has bipartisan support. Taxpayers should not be footing the bill for these purchases.

Next, the reconciliation bill can finally block grant Medicaid. This has been talked about for decades and is needed now more than ever. Since federal matching funds are a function of how much a state chooses to expand the Medicaid program, the 23 jurisdictions with incoming Democratic trifectas can currently shift costs for their adoption of socialist policies to taxpayers in other more conservative states.

Block granting Medicaid at current spending levels with only adjustments for inflation will ensure that states take ownership and bear the cost for both future coverage decisions and mismanagement.

A per-enrollee cap growing at the rate of inflation might be expected to save as much as $1.1 trillion by 2037 based on earlier CBO estimates. Adopting this bold policy can also show the GOP is willing to do something about the rampant government spending that has captured both sides of the aisle. 

Finally, the reconciliation bill can include federal funding for those states that implement voter ID laws. Providing federal funding could incentivize states to pass these laws and help secure our elections, something Trump ran on in 2024, but couldn’t get through the Senate.

In this way, Congress can implement the core of the SAVE Act through Reconciliation 3.0 and deliver on a major promise made to Republicans. This would also create a fail-safe in case the next president supports open borders and mass amnesty, as it would potentially prevent noncitizens from voting based on state law. 

These policies can be supported by members of both the House and the Senate. The big question remaining regarding these seemingly straightforward policies is if the Senate GOP can pass them. We argue they should.

Republican senators who just won reelection have strong incentives to vote for this package. They will be in the minority for at least the next two years under Trump’s lame duck. If they want to achieve wins and have something to show when it’s time for their reelection campaigns, now is the time to do so.

Senators who lost reelection should go out fighting. If nothing else, it would send a message to their base that they are finally listening to their constituents.

The clock is ticking, and it’s time to go big. 

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