House unveils $60B defense reconciliation bill, 83% below Pentagon request

House lawmakers introduced a new funding bill on July 15 that allocates $60 billion for defense—$290 billion less than the President's budget request. The legislation casts doubt on President Trump's plans for a $1.5 trillion defense budget this year.

Reconciliation Process

Dubbed "Reconciliation 3.0," the bill is designed to move through Congress under the reconciliation process, which bypasses the Senate's usual 60-vote supermajority requirement. Under reconciliation, only a simple majority is needed, allowing Republicans to pass the bill on a party-line vote.

Second Setback for Pentagon

The bill marks the second legislative disappointment for the Pentagon in as many days, following the Senate's failure to advance its version of the National Defense Authorization bill.

Budget Breakdown

Republicans on the House Budget Committee released a "concurrent resolution" totaling $95 billion, which includes:

• $60 billion for defense
• Remaining funds for other purposes

The resolution directs the House Armed Services Committee to determine how the $60 billion will be allocated, triggering a prioritization scramble between the Trump administration and the committee. The White House had originally sought $350 billion through reconciliation, on top of a $1.15 trillion budget request to be funded through normal legislative channels.

Separate Supplemental Request

Separately, the White House has asked Congress to approve a $67 billion supplemental funding bill to cover the war with Iran and additional needs.

Impact on Air Force and Space Force

The Air Force and Space Force would face significant shortfalls if the reconciliation package remains at its current size. Approximately 8.3 percent ($28.2 billion) of the Department of the Air Force's $338.8 billion budget request was expected to come through reconciliation, funding:

• Planned F-35 fighter purchases
• Targeting satellites
• Munitions

Background on Reconciliation Bills

Republicans passed their first reconciliation bill a year ago, officially named the "One Big Beautiful Bill Act," which included $150 billion for defense. A second bill passed in June funded immigration agencies, leading to the current package being called "Reconciliation 3.0."

Political Challenges

Congressional observers have expressed skepticism that Reconciliation 3.0 would reach the scale the White House desired. With narrow majorities in both chambers, Republicans can afford almost no defections. Key tensions include:

• Fiscal hawks oppose reconciliation funding without offsetting spending cuts
• Moderates in competitive districts worry such cuts would cost them votes

Byron Callan, managing partner and defense analyst at Capital Alpha Partners, has stated for months that passing the $350 billion package the White House wanted is "improbable" given the political calculus.

Path Forward

Republican leaders appear to have settled on a narrower package. House Budget Committee Chair Jodey Arrington (R-Texas), who coordinated the bill with Speaker Mike Johnson (R-La.), announced that his committee will mark up the new package on July 16.

Speaker Johnson praised the package on social media, stating: "Safeguarding American elections and strengthening our national defense are the most basic responsibilities of Congress and are supported by an overwhelming majority of Americans."

Unclear Allocation

Because the House Armed Services Committee must still formulate spending plans for the $60 billion, the exact implications remain unclear. A spokesperson for HASC Republicans and Chairman Rogers did not immediately respond to a query.

Iran War Supplemental

Congress has yet to act on the Iran war supplemental submitted June 24. If Republican leaders choose not to rely on Democratic votes for that bill, they could direct the $60 billion toward needs outlined in that request, which included:

• $21 billion for munitions
• $17.3 billion for operational costs
• $12.1 billion for classified programs
• $4 billion for two Space Force programs (Airborne Moving Target Indication and Space Data Network Backbone)

Potential Unfunded Priorities

Redirecting funds to the Iran supplemental would leave other priorities originally targeted for reconciliation without earmarks, including:

• $7.8 billion for the Air Moving Target Indicator program
• $4 billion for the Space Data Network
• $2.3 billion for 14 F-35s
• $1 billion for 330 extended range Joint Air-to-Surface Standoff Missiles
• $990 million for Joint Advance Tactical Missiles
• $953 million for up to 618 Advanced Medium Air-to-Air Missiles

Lawmakers could also attempt to pass a broader package, though the path forward remains uncertain.