House Budget Chair Jodey Arrington is in informal talks with Senate Budget Chair Lindsey Graham about a second reconciliation bill to fund the Pentagon — and potentially DHS.
Why it matters: With DHS talks stalled and a defense supplemental in limbo, reconciliation may be Republicans' only path forward.
- "I need to have a strong partner in the Senate, and I've got that with Lindsey," Arrington (R-Texas) told Axios on Monday. "He's been as enthusiastic as anybody … on a reconciliation 2.0."
- "Reconciliation is the only path to a defense supplemental," he said, adding that he is open to adding DHS funding to any reconciliation bill. "I'm not opposed to it. … It's going to become a public safety issue."
The intrigue: Upon returning from the White House late Monday for talks on DHS funding, Sen. Katie Britt (R-Ala.) suggested that she and her Republican colleagues had made real progress on funding DHS.
- Asked if they found a DHS solution, she said "we do," without providing any other details.
- Britt was part of a group of Senate Republicans, including Graham, who were spotted at the White House on Monday evening.
State of play: Earlier in the day, Senate Majority Leader John Thune (R-S.D.) called funding DHS via reconciliation an "option" on Monday.
- Graham (R-S.C.) is gathering his GOP members for a meeting early this week to discuss a second reconciliation bill, Punchbowl News reported.
- "I'd like regular order, but I'm ready to go on reconciliation," Graham said over the weekend of supplemental funding for Iran. "We need to do another one, no matter what."
Zoom in: Trump said Sunday he won't make a deal with Democrats to reopen DHS until they pass the SAVE America Act, the GOP's signature election bill.
- The Senate is entering week two of its "extended debate" on the SAVE Act, but it's all but certain to fail.
- The president also rejected Thune's request Sunday to strip out money for ICE and fund the agency through reconciliation.
- On the broad shutdown debate, President Trump has been urging Republicans to hold out: "Don't settle. … We have something bigger."
What they're saying: Arrington and GOP leaders are pitching a broader package — but one that must be paid for.
- "It won't just be defense. … It has to have offsets in savings," Arrington said. "We have a boatload of savings from fraud and improper payments."
- Arrington has also floated using tariff revenue and changes to Affordable Care Act cost-sharing reduction payments as potential offsets.
- Conservatives welcomed the idea of adding funding for Iran to reconciliation 2.0, but they also made clear it would need to be paid for.
The bottom line: The window for passing a reconciliation bill is closing.
- "We've probably got 60 to 90 days at best," Arrington said. "You've got to have this thing wrapped up before July 4."
Editor's note: This story has been updated to include new comments from Sen. Katie Britt.
