House Unveils $60B Defense Reconciliation Bill, 83% Below Pentagon Request

House lawmakers unveiled a $60 billion defense reconciliation package on July 15, which is $290 billion less than the Pentagon's requested $350 billion. The bill, dubbed 'Reconciliation 3.0,' aims to bypass the Senate's 60-vote threshold using a simple majority process. It follows a Senate failure to advance the National Defense Authorization bill. The Air Force and Space Force would face acute shortfalls, as $28.2 billion of their budget request was supposed to come through reconciliation, covering F-35 purchases, targeting satellites, and munitions. Republicans have narrow majorities and face opposition from fiscal hawks and moderates. The White House also submitted a separate $67 billion supplemental for the Iran war. The House Armed Services Committee must still allocate the $60 billion, potentially redirecting funds toward war needs like munitions and operational costs, leaving other priorities unfunded.