Trump’s next bill needs tax relief with teeth



A third reconciliation bill is becoming a central question in Republican economic policy. President Trump has called for one. House Budget Committee Chairman Jodey Arrington (R-Texas) supports it. Speaker Mike Johnson (R-La.) is trying to assemble the votes. Ways and Means Chairman Jason Smith (R-Mo.) is open to it if the numbers work.

Senate Republicans sound far less certain. Former Senate Minority Leader Mitch McConnell (R-Ky.) has been blunt: “I think it’s safe to conclude there will not be another reconciliation bill.”

The question congressional Republicans should ask is not merely what they can pass — it’s what they are willing to fight for.

Someone will win that argument. If House Republicans prevail, the real test will be what goes into the bill. Trump is right that defense readiness and election integrity are priorities. But neither is an economic growth agenda. Growth comes from removing barriers to work, saving, investment, and capital formation.

Supply-siders know what they want: lower corporate rates, zero capital gains, full repeal of the death tax, and a complete rewrite of how the tax code treats savings and investment.

Reconciliation in 2026 is not the vehicle for all of that. But it can still do real work.

Index capital gains to inflation

Investors now pay taxes on nominal gains from selling an asset. A family that bought a home in 2010 for $600,000 and sells it today for $1.2 million has not doubled its real wealth. Much of that increase reflects the dollar’s declining purchasing power. Taxing inflation on top of inflation is double taxation by another name. Congress should index all capital gains to inflation.

A practical fallback already has bipartisan support. Reps. Jimmy Panetta (D-Calif.) and Mike Kelly (R-Pa.) have reintroduced the More Homes on the Market Act, which has 123 co-sponsors. The bill would raise the primary-residence exclusion from $250,000 to $500,000 for single filers and from $500,000 to $1 million for joint filers. Those thresholds were set in 1997 and have never been adjusted for inflation.

The 2026 Economic Report of the President identifies supply constraints as a major driver of housing costs. Either reform would reduce the tax penalty that discourages homeowners from selling, moving, or downsizing.

Tax tax-exempt wealth hoards

Universities and hospitals have spent decades accumulating vast tax-exempt wealth while pricing out the people they claim to serve. Harvard’s endowment exceeds $56 billion. Most of its investment earnings remain largely exempt from federal taxation. Economist Richard Vedder has called university tax subsidies one of the most regressive policies in the tax code.

Congress raised the endowment tax as high as 8% in the last reconciliation bill. A 15% excise tax on endowments above $100 million would send a clearer signal that tax-exempt status is a privilege, not a birthright.

The same logic applies to commercial activities at universities and hospitals. When a university runs a hotel, a patent-licensing operation, or a hospital system, it is engaging in commerce. Tax it accordingly.

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Cap Medicaid fraud

Every dollar lost to Medicaid fraud is a dollar extracted from taxpayers and lost to the private economy. Capping federal Medicaid allocations to states with demonstrated high fraud rates is both fiscally sound and pro-growth. It belongs in any serious reconciliation package.

Redirect health care subsidies

The current system funnels public money through insurance intermediaries that extract rents at every step. The 2026 Economic Report of the President documents how lack of competition in physician markets drives up costs. Redirecting health care subsidies directly to individuals would restore price signals to a sector long insulated from them.

Republicans have a narrow window and a thin majority. The votes may not be there. But the question congressional Republicans should ask is not merely what they can pass — it’s what they are willing to fight for.

Every item here removes a barrier to capital formation or productive investment. That is not four different ideas. It is one growth agenda, applied four ways.

House Republicans STEAMROLL obstructionist Democrats, secure ICE funding for rest of Trump's term



Democrats have worked desperately to defund or at least hinder President Donald Trump's crackdown on illegal immigration and mass deportation campaign. Their efforts have proven again to be in vain.

Last summer, congressional Republicans circumvented the various obstacles presented by their leftist colleagues, using budget reconciliation to pass the One Big Beautiful Bill Act, which included $75 billion in new funding for U.S. Immigration and Customs Enforcement and tens of billions more for other agencies within the Department of Homeland Security.

'All that Democrats have achieved by their shutdown is a useful reminder to the American people of their support for open borders.'

The war over immigration policy and funding heated up in subsequent months, featuring a pitched battle in which Democrats partially shut down the DHS for 75 days, only to then unconditionally surrender, passing funding for the DHS in the wake of the longest government shutdown in its history.

On Tuesday, Democrats were dealt another significant defeat.

Days after it was passed by the U.S. Senate in a 52-47 vote, the Secure America Act went to a vote in the House.

Ahead of the vote, the White House said in a statement, "The Secure America Act puts an end to Democrats’ political games by fully funding ICE and Border Patrol through President Trump’s term and providing the resources needed to keep our border secure, combat human trafficking, stop the flow of deadly drugs, dismantle criminal cartels, and enforce America’s immigration laws."

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"It is imperative that Congress immediately passes the Secure America Act to fully fund these critical components," said DHS Secretary Markwayne Mullin.

"It has been more than 100 days since congressional Democrats defunded ICE and Border Patrol in a radical attempt to protect violent criminal illegal aliens and undermine President Trump’s highly successful border security agenda."

House Minority Leader Hakeem Jeffries (D-N.Y.), among the Democrats who futilely signaled their opposition to the bill, stated, "As if ripping health care and nutritional assistance in the One Big Ugly Bill wasn’t enough, Republicans have now come back for more to give ICE and Donald Trump’s violent mass deportation machine another $70 billion blank check with no oversight, no accountability, and no guardrails."

"As Democrats, we rise in strong opposition to this Republican scheme. Waste of taxpayer dollars," added Jeffries.

To Jeffries' chagrin, the Secure America Act passed in a 214-212 party-line vote.

This funding bill will allocate $38 billion to ICE, $26 billion to Customs and Border Protection, and $5 billion in additional funding to the DHS through September 2029.

Following the vote, House Speaker Mike Johnson (R-La.) emphasized that "Washington Democrats gained **NOTHING** from their RECKLESS CRUSADE to return our country to OPEN BORDERS and UNFETTERED MASS MIGRATION. Republicans will ALWAYS stand with America's law enforcement."

"All that Democrats have achieved by their shutdown is a useful reminder to the American people of their support for open borders and keeping criminal illegal immigrants in American communities — policies that have been soundly rejected by the American people over and over again," wrote Johnson. "We hope this episode serves as a future reminder to Democrats that when they shut the government down, they will receive less than nothing in return."

President Trump is set to ratify the Secure America Act in the Oval Office on Wednesday.

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Republicans took ICE hostage — then bragged about saving it



It has been a pitiful few weeks for the United States Senate, which means senators are now pretending they saved Immigration and Customs Enforcement, fought for the SAVE Act, and still care about victims of government weaponization.

None of that is true.

Do not buy the celebratory social media posts from Senate Republicans. Get to work electing new ones instead.

This is a geriatric form of professional wrestling kayfabe. But instead of heroic wrestlers in tights, the actors are young communications staffers tweeting victory on behalf of their bosses while those bosses fly home.

Before we unpack what happened, we should understand how we got here. To his credit, Sen. Rick Scott (R-Fla.) recently summarized the problem well: “We made a huge mistake by not funding ICE and CBP in January. We NEVER should have funded the Democrats’ thousands of earmarks without funding ALL of homeland security. It is time to fund ICE and CBP NOW!”

It was a mistake, except that it was intentional. Still, Scott acknowledged the major point his colleagues would rather hide. Forthrightness in the Senate is rare, so we should welcome it when it appears.

The story begins in January, after two protesters were killed obstructing ICE. In the media-driven hysteria that followed, Congress did something unusual: It split off the Department of Homeland Security from the funding package that covered other agencies.

At the urging of Minority Leader Chuck Schumer (D-N.Y.) and top Democrat appropriator Sen. Patty Murray (Wash.), Republicans caved and agreed to put DHS in a stand-alone funding posture. In congressional funding terms, that means danger.

For decades, government funding has largely moved through omnibus and minibus bills that force lawmakers into take-it-or-leave-it votes. Members may dislike parts of the package, but they swallow the whole thing to avoid shutting down large portions of the government. When DHS stands alone, Democrats have a much easier time voting no.

In February, DHS funding shut down. Airport lines grew. Employees went without pay. DHS changed secretaries. Democrats continued blasting ICE, deportations remained low, and the Trump administration retreated on parts of the deportation agenda.

In other words, Democrats gained concessions while holding DHS funding hostage.

Then, in April, Senate Majority Leader John Thune (R-S.D.) and Speaker Mike Johnson (R-La.) began negotiating with the hostage-takers in earnest. They offered another major concession: separate ICE and Customs and Border Protection from DHS, making ICE and CBP a stand-alone within a stand-alone. For funding purposes, it is hard to imagine a worse fate.

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Congress funded the rest of DHS, ending a roughly 76-day shutdown. Politicians breathed a sigh of relief because airline lobbyists would stop pestering them about long lines at airports. ICE and CBP, meanwhile, would have to be funded through another mechanism: reconciliation.

Reconciliation funding creates operational problems that normal appropriations do not. That deserves more attention, though it falls deep into the procedural weeds. The key point is that ICE and CBP were isolated, weakened, and pushed onto a more perilous path.

As part of ending the shutdown for every part of DHS except ICE and CBP, President Trump demanded a reconciliation bill funding those agencies by June 1.

Negotiations began, then quickly collapsed after the May announcement of an Anti-Weaponization Fund that would compensate victims of government persecution. Republican senators revolted and learned the lesson Democrats had just taught them: ICE and CBP could be used as hostages.

They threatened to withhold ICE and CBP funding unless Trump agreed to kill the fund. Ultimately, Acting Attorney General Todd Blanche did just that.

Despite acting as hostage-takers, Republican senators also used the reconciliation process to posture on the SAVE Act, which had no chance of passing through that mechanism. The SAVE Act, which is popular across party lines, includes voter ID and proof-of-citizenship requirements for voting.

Sen. Lindsey Graham (R-S.C.), a leading opponent of the Anti-Weaponization Fund but a proponent of his own right to recover damages for weaponization against himself, introduced a meaningless amendment on the SAVE Act. Knowing most voters do not understand Senate procedure, he styled the move as a valiant attempt to pass election integrity legislation.

“Mr. President,” Graham posted, “I was honored to lead the charge to pass the SAVE America Act, one of the most consequential pieces of legislation you and your team have created.”

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This was insincere and unserious. The SAVE Act has no chance unless the talking filibuster is enforced. Everyone on the Senate floor knew that. But Graham maintains Trump’s endorsement in his upcoming primary, so perhaps it will not matter. We may be stuck with him even after Trump leaves the stage.

Much of the swamp remains undrained.

This whole drawn-out charade should be remembered for two reasons.

First, Senate Republicans crossed the Rubicon and went where Democrats had already gone: They held ICE hostage. Worse, they held ICE hostage to force the Trump administration to scuttle the Anti-Weaponization Fund. That is a double betrayal of the base: threaten immigration enforcement to hurt victims of government persecution.

Second, Senate Republicans helped create the most perilous funding path for ICE and CBP moving forward: complete isolation. With ICE and CBP now handled outside the normal appropriations process, they will face another shutdown unless this strategy is reversed. As soon as Democrats have enough votes, they will try to defund both agencies.

Do not buy the celebratory social media posts from Senate Republicans. Get to work electing new ones instead.

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