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By Jasmine Laws

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House Republicans have shared a plan for a second "big, beautiful bill," which the Republican Study Committee says could cut the federal deficit by more than $1 trillion.

The plan, unveiled by Republican Study Committee Chair August Pfluger and House Budget Committee Chair Jodey Arrington on Tuesday, addresses a number of issues, including access to homeownership, lower drug prices, access to health care, rising energy costs and "wasteful" government spending.

Newsweek has contacted the press office of Pfluger for comment via email outside regular working hours.

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Arrington said in a statement shared with Newsweek, "Instead of lighting the fuse of inflation with bad policies, we’re lighting the fuse of prosperity with economic freedom. And by the way, the One Big Beautiful Bill was the largest tax refund—$100 billion and another $100 billion in less withholdings. People are putting more money in their pockets."

Why It Matters

The new "big, beautiful bill" is being presented as a way to carry on the work of President Donald Trump's first reconciliation bill beyond his presidency, in some cases by preventing future administrations from undoing its policies.

The committee has also said the plan will cut the federal deficit, although the Congressional Budget Office predicted that the first tax bill would add $3.4 trillion to the federal deficit through 2034.

The U.S. government posted a $145 billion budget deficit ‌for December, up 67 percent from the year before, Reuters reported.

Despite that December surge, the U.S. budget deficit for the year was down, shrinking to $1.67 trillion for the 2025 calendar year—the smallest in three years—according to a Bloomberg report.

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What To Know

In an op-ed for The Hill, Pfluger said the first reconciliation bill—the One Big Beautiful Bill Act, which Trump signed into law in July—delivered the largest tax cut in American history, among other things, but that the "legislative victory" only covered part of the president's agenda.

"Much of it still lives in executive orders and regulatory actions that can be undone the moment a Democrat enters the Oval Office," the congressman wrote.

The plan, a second reconciliation bill, is therefore a way to "lock in President Trump's agenda for the next generation," Pfluger added.

The policies of the new bill would see some Americans saving money—at the expense of the public purse—as the federal death tax would be repealed and the capital gains tax would be eliminated on the sale of homes to first-time homebuyers.

Noncitizens would lose access to Medicaid and the Supplemental Nutrition Assistance Program, and changes to the SNAP program—which would save the federal government about $7.4 billion—could also be a blow to recipients.

Below is a list of some of the key features of the plan.

Homeownership

• "The Don" Payment Program: Offers a zero-to-low down payment option through the Federal Housing Administration for creditworthy borrowers to lower homeownership barriers.
• Mortgage Portability: Allows borrowers with Fannie Mae or Freddie Mac loans to keep existing mortgage rates when moving or let buyers assume the seller's rate.
• Sell Underused Federal Property: Directs agencies to sell or lease underutilized federal properties to increase affordable private housing supply.
• Capital Gains Tax Cuts: Eliminates capital gains taxes on home sales for first-time buyers and on rental homes sold to tenants to incentivize sales.
• Home Savings Accounts: Establishes tax-advantaged savings accounts (via Trump Account structure) and allows drawdowns from other accounts for home purchases.
• Foreign Investment Penalties: Imposes tax penalties on foreign nationals buying U.S. real estate for investment and a 5 percent remittance tax on funds sent abroad by noncitizens.

Health Care

• Parallel Insurance Market: Creates a new option for individuals to buy lower-premium comprehensive coverage outside existing marketplaces.
• Direct Subsidies (Health Freedom Accounts): Reforms ACA subsidies so money goes directly to patients rather than insurance companies to increase consumer choice.
• TrumpRx and Price Transparency: Codifies the "TrumpRx" program to let pharmaceutical companies bypass middlemen for direct discounts and mandates cash price disclosures for medical care.
• Medicaid and Welfare Restrictions: Prohibits noncitizen foreign nationals from receiving Medicaid, SNAP and housing assistance, and penalizes states that allow undocumented immigrants to use Medicaid. Also prohibits Medicaid and ACA enhanced tax credits being used to finance gender transition procedures and abortions.
• PBM Reform: Requires pharmacy benefit managers to pass a portion of rebates directly to patients.

Energy Independence and Economic Security

• Legislative Approval for Regulations: Prohibits "economically significant rules" without preemptive congressional approval, consistent with the REINS Act.
• Deregulation Codification: Codifies Trump's executive orders on deregulation and affordability.
• Clean Air Act Fee: Imposes a fee for Clean Air Act preemption waiver applications made by states seeking to exceed EPA federal emissions standards.
• Permitting Reform: Reduces Bureau of Land Management permitting requirements for drilling where the federal government owns less than half the subsurface minerals.
• "Keeping the American Promise": Establishes economic protections for private investments, such as fossil fuel development, against future administrative cancellations.
• End Inflation Taxation: Adjusts capital gains taxes so individuals are not taxed on asset appreciation caused solely by inflation when selling homes or businesses.
• "Permit by Rule" System: Creates a "permit by rule" system for oil, gas and liquid natural gas exports to expedite trade.
• Jumpstart Accounts: Creates tax-free savings accounts for apprenticeship education and business startup costs to support workforce development.

What People Are Saying

House Budget Committee Chair Jodey Arrington said in a statement shared with Newsweek: "I'm just talking about the affordability issue. I do think it's the most important issue for November. I think it's the most important issue for the American people. They have total confidence that President Trump's going to secure the border. He's going to enforce the law and keep them safe, and he's going to restore respect on the global stage with peace through strength. The question going into November is, can we accelerate what we're seeing with gas prices coming down, rent coming down, and lower mortgage rates? People paid an average of $1,000 more for their monthly mortgage because of the failed policies of the Biden Administration. In just a year of good economic policies, they're paying $200 less."

Republican Study Committee Chair August Pfluger wrote in an op-ed for The Hill: "American families continue to be crushed by the lasting effects of Biden-era policies that have made the middle-class dream unattainable. Young couples can't afford down payments for homes. Parents are choosing between health care and groceries. Energy bills are eating paychecks. The affordability crisis isn't an abstract economic indicator. It's the daily reality for millions who did everything right and still can't get ahead.

"The recent shutdown demonstrated that Democrats are not willing to work with Republicans. We hold razor-thin majorities in both chambers with no guarantee they survive the midterms. We can spend the next year in fruitless negotiations with an opposition party that proved they'd rather shut down the government than reach across the aisle, or we can use reconciliation to tackle affordability while codifying the Trump agenda into permanent law. The choice is clear, and we can't afford to wait."

President Donald Trump said at the Detroit Economic Club in Michigan on Tuesday: "We're going to have a balanced budget without all the growth I'm talking about, and then when you add the growth we've got one hell of a country."

What Happens Next

It remains to be seen whether the proposal by House Republicans will become law. As it is a reconciliation bill, the plan can be passed with 51 Senate votes instead of the usual 60.

Update 1/14/25, 12:12 p.m. ET: This article has been updated with a statement from Jodey Arrington.

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