A New Congressional Plan to Save $1.5 Trillion and End Abortion Funding

The Heritage Foundation released its version of Reconciliation 3.0, a new plan to end federal funding for abortion, combat fraud, and save America $1.5 trillion.

The leading conservative policy institute on Wednesday unveiled “Setting the American Opportunity Agenda,” a special budget and spending report for Congress, and House Speaker Mike Johnson said he is ready to act on it.

While the “One Big, Beautiful Bill” was successful, the GOP can save Americans even more money, and the foundation says its plan could be the answer.

“The OBBB was a major accomplishment in 2025 and had many constructive consequences, but the resultant tax refunds have come and gone, and significant new legislation is needed to get voters excited about this election season,” Daniel Kowalski, director of the federal budget at The Heritage Foundation and author of the plan, told the Daily Signal.

“Without that excitement, conservative voters may stay home, placing Republican congressional majorities in jeopardy,” he continued.

Reconciliation is a Senate procedure allowing budget legislation to pass with 51 votes instead of the required 60 votes, avoiding the filibuster. The last successful reconciliation package was the One Big, Beautiful Bill, which delivered more than $1.6 trillion in tax cuts.

Congress is getting ready to vote on another reconciliation package, Rec. 2.0, to fund U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection.

This is a plan that “Congress should begin working on immediately,” Kevin Roberts, president of The Heritage Foundation, said.

After sharing the plan with Congress, a source familiar with the report confirmed the House Budget Committee and staff for Rep. Jodey Arrington, R-Texas, were “very receptive.” Minutes later, Johnson confirmed to the press that the Reconciliation 3.0 bill will be released “in the coming weeks” and Vice President JD Vance is involved.

The Heritage plan can be “drafted quickly” and by a “limited number of congressional committees,” Kowalski said, noting that the GOP’s deadline is summer.

The proposal includes many details of the House Republican Study Committee’s blueprint for Reconciliation 3.0, which builds on the One Big, Beautiful Bill. It includes lowering health care costs through price transparency, reducing fraud, expanding opportunities for families, ending federal funding for abortion, and protecting American workers and taxpayers.

“New proposals include changing the requirement that the Federal Reserve pay interest to banks, which tends to discourage lending and has allowed the Fed’s balance sheet to grow,” Kowalski said. “This complements Fed Chairman [Kevin] Warsh’s goal to reduce the Fed’s balance sheet.”

“We also reduce the burden on states to provide health care for single adults and encourage health plans to reward participants who choose higher-value providers. These policies tend to lower costs for consumers and reduce the interest rates they pay,” he added.