The “218” Reconciliation Proposal: A Bold Conservative Vision
The conservative House Freedom Caucus (HFC) introduced its “218” Reconciliation Proposal, aiming to redefine federal spending and accelerate the America First agenda under President Trump. This two-step strategy seeks to deliver swift wins for conservatives by focusing on national security, reversing Biden administration policies, and introducing significant spending cuts. The proposal comes on the backdrop over division within the Republican caucus on spending cuts and passing a long-term debt ceiling bill. The HFC usually holds out on supporting more spending and debt ceiling increases and have often been labeled us obstructionist by more moderate Republicans who want to spend more on government programs.
The plan includes a two-year debt ceiling increase—approximately $4 trillion—paired with commitments to dollar-for-dollar spending cuts over the next decade. The HFC emphasizes that their approach would not only fund key Republican priorities but also “bend the spending curve down for the first time in decades.”
Border Security and Defense: Prioritizing National Security
Central to the proposal is a robust investment in national security, allocating $200–$300 billion over four years. Of this, $100 billion is earmarked specifically for border security, including funding for the border wall, Border Patrol, and Immigration and Customs Enforcement (ICE). The proposal aims to reverse what the caucus calls “Biden’s illegal alien crisis.”
The proposal includes defense spending increases of $100–$200 billion to modernize the military. The HFC stresses the importance of staying ahead of global adversaries like China, committing to limited annual appropriations to ensure sustained military strength without expanding bureaucracy.
Reversing Biden Policies: Fiscal Reform as Pay-Fors
The HFC proposal identifies several Biden-era policies to repeal, projecting savings between $361 and $541 billion over ten years. Key reversals include:
- Ending the Electric Vehicle (EV) Mandate: Estimated savings of $111 billion by halting Biden’s EV initiatives, which the HFC claims burden taxpayers.
- Repealing IRS Funding: Redirecting $30–$40 billion from IRS expansions to border enforcement, aligning with previous GOP efforts to curb federal agency growth.
- Overturning the Student Loan Bailout: Saving $100–$270 billion by reversing Biden’s student debt forgiveness policies, which conservatives argue unfairly shift the burden to taxpayers.
- Work Requirements for Medicaid and SNAP: Introducing stricter work requirements for able-bodied adults, projected to save $120 billion.
The caucus also proposes ending federal benefits for illegal immigrants, imposing fees on asylum seekers, and opening federal lands for energy exploration to boost domestic production and reduce costs.
Addressing Fiscal Responsibility and the Debt Ceiling
The proposal ties the debt ceiling increase to significant fiscal reforms, echoing long-standing Republican efforts to reduce the deficit. The HFC advocates for measures like the Midnight Rules Relief Act to roll back late-term regulations from the Biden administration, potentially saving hundreds of billions.
While the plan outlines a path to fiscal discipline, it also references the challenges of balancing these priorities with past Republican spending patterns. Critics recall Trump’s first term, during which federal debt surged by $7.8 trillion, driven by tax cuts without spending cuts, increased defense spending, and COVID stimulus.
The Stakes for Republicans
The HFC’s proposal aims to deliver immediate wins for conservatives while setting the stage for broader fiscal reforms. By avoiding delays and leveraging reconciliation, the plan seeks to strengthen Republican negotiating power ahead of future budget debates.
However, this ambitious agenda could deepen divisions within the party. Moderates may balk at the scale of spending cuts, while Democrats are very likely to resist any proposed rollbacks of Biden-era policies and spending cuts.