House GOP leaders narrowly avoided a major setback on Thursday, July 16th, 2026, as the House Budget Committee approved a $95 billion budget reconciliation framework along party lines. The package includes $73 billion for defense and intelligence, $12 billion in assistance to farmers, and a $10 billion fund for grants to states implementing elements of the SAVE America Act.

Despite this victory, House Speaker Mike Johnson (R-La.) is expected to face opposition on the House floor next week. Some conservative members sharply criticize the package for lacking spending-cut instructions. Chip Roy (R-Texas), a member of the budget panel, did not vote on the measure.

The budget blueprint now moves to the House Rules Committee, where GOP leaders aim to secure a key vote to bring the plan to the full chamber by the end of next week. Johnson described the effort as "our best shot at enacting our party's top priority legislation, the SAVE America Act," during a news conference with Vice President JD Vance.

Fiscal hawks have so far declined to deliver a fatal blow to the GOP megabill over the absence of spending offsets but remain a threat to its passage. Some conservatives have expressed that a no-offset plan is "dead on arrival," indicating potential challenges ahead.

Johnson remains optimistic, stating, "I am more and more optimistic each day that passes," despite acknowledging that "everybody is betting against us being able to get it done."

Sources