Just weeks after the passage of President Donald Trump’s sweeping $3.4 trillion tax and spending bill, House Republicans are gearing up for round two. This fall, the GOP plans to introduce a follow-up budget bill focused on additional spending cuts and tax code adjustments, according to Bloomberg.

House Budget Committee Chairman Jodey Arrington told Bloomberg the upcoming package will be “more targeted,” with a sharper focus on reforms that didn’t make it into the first bill. Chief among them: Medicare changes and Medicaid cuts. 

Arrington aims to reduce hospital reimbursements by implementing site-neutral payments, a move he says could save $150 billion. Republicans are also pushing for stricter Medicaid eligibility enforcement, particularly targeting benefits extended to undocumented immigrants and able-bodied individuals under the Affordable Care Act. 

The bill would use the fiscal 2026 budget reconciliation process, allowing passage with a simple Senate majority, bypassing the filibuster and limiting Democratic influence. A third bill could follow under the 2027 budget, giving Republicans two more chances to push through spending reforms before the midterms. 

Some ultraconservative lawmakers want to go further. They’ve floated using reconciliation to implement recommendations from the Department of Government Efficiency. But Arrington pushed back on that idea, warning against using reconciliation to replace the traditional appropriations process altogether. 

Arrington emphasized that using reconciliation to bypass the regular appropriations process could have long-term consequences for the GOP, particularly if Democrats regain control of Congress. 

As the process unfolds, details of the follow-up budget bill remain under development.