White House Weighs Reconciliation Options for Healthcare Legislation

White House deputy chief of staff James Blair revealed Tuesday that the administration is considering a fast-track reconciliation process for healthcare or tariff legislation, with the aim of passing a bill using a simple majority. Blair spoke at a Bloomberg event, emphasizing the need for bipartisan agreement but acknowledging that reconciliation remains an option if talks collapse.

The administration plans to release a healthcare proposal, with Trump potentially favoring a larger plan than congressional Republicans are prepared to support. Blair noted there could be differing opinions on how far the White House wants to go. Several Republican lawmakers have expressed private expectations that the plan will revisit long-standing GOP health priorities, including lowering insurance costs, expanding health savings accounts, and rolling back parts of the Affordable Care Act.

Blair also mentioned that a reconciliation package could include tariff language, referencing “Trump tariff dividends” and the administration’s interest in securing tariff policies in statute. Senate Republicans have been discussing a second reconciliation bill, with Senate Budget Committee aiming for early next year to finalize a budget resolution that would open the door to another party-line package.

Senate Budget Chair Lindsey Graham, R-S.C., suggested the tool could be used for healthcare, spending, and tax policy. However, some senior Republicans in both chambers remain skeptical due to the need for near-unanimous GOP support in their narrow majorities. Republican senators recently noted that several health items excluded from the earlier bill may not qualify under Senate reconciliation rules, with one attendee stating the limits could complicate any attempt to move a broader health package.

Trump posted again on Tuesday about his focus on healthcare issues, writing in all-caps: “The only healthcare I will support or approve is sending the money directly back to the people, with nothing going to the big, fat, rich insurance companies, who have made $trillions, and ripped off America long enough.”