08/21/2025

Republicans Push for Another Reconciliation “Megabill”

This new bill could impose tax increases on associations

After passing historic tax legislation last month, House Republican leadership is pushing for a second “megabill” reconciliation package, according to Politico. A working group named “Reconciliation 2.0” has been created by the Republican Study Committee, who have been hosting staff briefings throughout summer recess to prepare recommendations for another bill.

Why It Matters:

• Reconciliation allows Congress to pass legislation with a simple majority, requiring only Republican votes in the current Congress.
• This legislative process was used to consider tax increases on associations and other nonprofits before those proposals were removed in sweeping tax legislation passed in July.
• Senate Finance Committee Chairman Mike Crapo (R-ID) said he is open to consideration of about 200 tax proposals that were considered but not included in the first tax bill.

The path forward in the Senate is less clear. Senators have noted they have not received guidance from the White House for what should be in a second bill.

• It is unclear whether House-supported policies not enacted in the first bill can be reworked to comply with Senate rules on reconciliation.

But fiscal conservatives are making a forceful push in the Senate. Sen. Ron Johnson (R-WI) insists that another reconciliation bill would be effective in cutting spending even further than what Republicans were able to cut in the first bill.

"Leadership is telling us we'll do one or two more reconciliations in this Congress, so the clock's ticking," Johnson said.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.