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WASHINGTON (AP) — A roughly $70 billion bill to fund immigration enforcement through the remainder of President Donald Trump’s term was supposed to be an easy lift for Republicans.

But progress stalled over concerns about the inclusion of White House ballroom security funding in the package and the creation of a $1.8 billion fund to finance claims of government mistreatment. The stumble has not only delayed action on a top GOP priority but also is raising questions about other parts of the party’s legislative agenda, including whether Republicans can enact another catchall, party-line bill referred to in Washington parlance as “Reconciliation 3.0.”

Republicans have spent recent weeks laying the groundwork for such a bill, which they hope will serve as a final sales pitch to voters going into the midterms.

Speaker Mike Johnson and Majority Leader Steve Scalise, both of Louisiana, have been meeting with committee and caucus chairs to screen for proposals that have strong buy-in from the rank and file. They are aiming to follow up on last summer’s big tax and spending cuts bill with a measure that would increase Pentagon spending by hundreds of billions of dollars and would include cuts elsewhere to help pay for it, which they are couching as tackling government waste and fraud.

It’s a high-stakes gambit in an election year. Success will reinforce the GOP’s message of being able to deliver on legislative priorities. Failure will underscore some of the Republican fractures under Trump that could leave voters seeking an alternative.

Here’s a look at the coming debate as Republicans hope to pass a bill before leaving for their August recess.

House Republicans sound confident

Johnson navigated the House GOP’s slim majority in passing Trump’s tax and spending cuts bill last summer. The vote was 218-214. At the time, Republicans could afford to lose three votes from within their ranks. They lost just two.

They’ll have a thin margin of error again, but Johnson said he’s even more confident of success this time around.

“It will be just as beautiful, but not as big, so it’ll have less provisions and less things to get everybody to yes on,” he said.

Rep. Jodey Arrington, chairman of the House Budget Committee, said Republicans are just as motivated as they were last year on the tax cuts bill.

“This one, I think you’ll have potentially money to support our troops in conflict,” said Arrington, of Texas. “I can’t imagine a Republican not wanting to support our troops and military community in a time of conflict.”

The Trump administration has called on Republicans to provide $350 billion to defense through a reconciliation bill.

But Rep. Brendan Boyle, the lead Democrat on the House Budget Committee, said Republicans will have a more difficult path than they did with Trump’s big tax and spending cuts bill.

“I think it will be for a couple of reasons. First is the president’s approval rating. He was at a much higher level a year ago than he is right now,” said Boyle, of Pennsylvania. “Number 2, we are much closer to the November midterm elections. So, if you’re one of a dozen or a couple dozen House Republicans who are really vulnerable in a swing district, you have to think even more carefully about voting for something that has even more health care cuts in it.”

The tax cuts bill that passed last summer reduced spending on Medicaid by more than $900 billion over a decade. It also reduced spending on nutrition assistance by about $187 billion over a decade, according to the Congressional Budget Office.

Caution in the Senate

Senate Majority Leader John Thune called a third reconciliation bill to get around the filibuster a “potential option,” hardly a ringing endorsement.

“We haven’t made any commitments on that, but we’re hearing people out,” said Thune, of South Dakota.

Sen. Thom Tillis of North Carolina said lawmakers should know what will be in the bill before the legislative process begins. That way, it’s less likely to unravel.

“If it just becomes another exercise where you’re not really sure what’s going to be the end product, then I think it’s a mistake even to pursue it,” Tillis said. “We ought to be smart about it if we do a third one, but it is kind of a moonshot.”

Sen. Lisa Murkowski of Alaska said she worried about the strategy.

“A third reconciliation may or may not happen. I’m just being direct,” she said.

Little time and fractured relations

The House is expected to be in session for about 24 more days before it breaks for its August recess. That leaves little time to pass a budget blueprint in both chambers, which is the first hurdle for pursuing party-line tax and spending bills. Committees would also have to wrap up their work advancing their portions of the legislation.

Another hurdle could be Trump’s treatment of current senators whose votes he will need for any package to become law. Trump endorsed opponents of two senators who faced stiff primary challenges and eventually lost — Sens. Bill Cassidy of Louisiana and John Cornyn of Texas.

Cassidy has already shown more willingness to buck the president. Fresh off his primary loss, he voted last week to advance a bill that seeks to force Trump to withdraw from hostilities with Iran.

What could make it into the bill

Lawmakers said they could tweak and resurrect some proposals that did not pass muster with the Senate parliamentarian for inclusion in last year’s reconciliation bill. For example, Republicans tried to prevent states from providing Medicaid coverage for immigrants who are in the U.S. illegally.

Rep. August Pfluger of Texas, chairman of the Republican Study Committee, said the bill should rest on three pillars, making the country more affordable and secure while reducing fraud.

Among the group’s recommendations is a proposal to eliminate the capital gains tax on the sale of homes to first-time homebuyers, which they say would incentivize the market, and a proposal to impose a 5% tax on funds sent by noncitizens back to their home countries.

Arrington said he would also like to tighten the rules for the earned income tax credit, a program that increases the financial reward for working but that also has a high rate of improper payments. He also called for prohibiting immigrants who are in the U.S. illegally from living in housing units financed by a housing tax credit paid to developers who construct and rehab affordable housing for renters.

“There’s a lot more work to be done to build on what we did in the first one with Medicaid and SNAP (nutrition assistance), with respect to fraud,” Arrington said.

WASHINGTON (AP)- A federal judge has declined to halt President Donald Trump’s executive order creating a federal voter list and limiting mail voting, clearing the way for potential sweeping changes in how American elections are run shortly before this year’s midterm elections.

U.S. District Judge Carl Nichols, a Trump appointee in Washington, late Wednesday rejected the request by Democrats and civil rights groups that had argued Trump’s order would likely be found unconstitutional because the states and Congress, not the president, have the power to set election rules. Nichols agreed with the Republican Trump administration’s contention that it was too early to block the order because it has yet to be implemented.

“The Court recognizes that the Postal Service may ultimately issue a final rule that directly affects Plaintiffs or their members, or that the Government may develop State Citizenship Lists that omit specific individuals due to particularized flaws,” Nichols wrote. “Plaintiffs may, of course, renew their motions if and when those future actions occur. Until then, however, Plaintiffs cannot show that preliminary injunctive relief is warranted.”

The legal battle against the provision now shifts to Boston, where voting rights groups have a separate lawsuit seeking to temporarily block the executive order in federal court. The Trump administration has yet to formally issue lists of eligible voters, and those who filed the initial request for a temporary halt said they’d be back if the administration moves in that direction.

“We are ready to resume the fight if and when the administration takes those next steps,” said Juan Proaño, chief executive officer of the League of United Latin American Citizens, one of the organizations that sought the stay from Nichols.

Trump issued the order in March after a bill he supported to overhaul voting stalled in Congress. The order would have had the federal government create a list of eligible voters and then directed the U.S. Postal Service to deliver mail ballots only to those on the list. Election officials argued it was ripe for abuse and could cause chaos.

Since his 2020 presidential election loss to Democrat Joe Biden, Trump has groundlessly claimed mail voting is rife with fraud and has launched a federal investigation into that year’s vote, even though repeated audits and investigations, including ones run by Republicans, found it was free of widespread fraud. Trump also has said he wants to “take over” election administration in Democratic areas.

Democrats and civil rights groups argued it was urgent that Nichols issue a restraining order in the midst of primary season and with states already gearing up for the fall midterm elections.

This was Trump’s second executive order seeking to overhaul elections and voting. His initial election executive order, issued just months after he took office in his second term, has been blocked by multiplefederal judges. That order sought to require documentary proof of citizenship to register to vote, among other changes.

WASHINGTON (AP) — A key inflation gauge accelerated in April to the highest level in three years, squeezing Americans’ finances and creating political challenges for President Trump and congressional Republicans with midterm elections just five months away.

Inflation jumped to 3.8% in April compared with a year ago, the Commerce Department said Thursday, up from 3.5% in March and the highest since May 2023. On a monthly basis, prices rose 0.4%, down from the 0.7% jump in March but still higher than the inflation-fighters at the Federal Reserve would prefer.

Thursday’s inflation report also showed that in addition to gasoline, prices for groceries, clothing and electricity are also on the rise, indicating that inflation could persist. Inflation is also notably above the Federal Reserve’s target of 2%, which means Fed policymakers may decide to forego any cuts to their key short-term interest rate this year. Some officials have signaled that the central bank’s next move could be a hike rather than a cut.

Excluding the volatile food and energy categories, core inflation rose to 3.3% in April from 3.2% the previous month. It is the highest core figure since October 2023. One positive sign in the report: Core prices rose just 0.2% in April from March, down from 0.3% the previous month.

Higher prices are also cutting into the incomes of Americans, which were unchanged in April from March. Incomes were weak in part because farm incomes fell after a large government aid package ended last month. Adjusted for inflation, personal income actually slipped 0.1% last month.

Spending rose 0.5% in April from March, though most of that reflected price increases. Adjusted for inflation, spending rose just 0.1% in April, down from 0.3% the previous month.

“Signs of stress are building inside the American household across the economy,” Joe Brusuelas, chief economist at RSM, a tax advisory firm, said. “Inflation-adjusted spending, disposable income … point to a slowing in May spending as inflation approaches a peak on the back of a historic supply shock.”

The U.S. economy grew at a modest 1.6% annual pace from January through March, according to a separate report from the Commerce Department Thursday. The country’s gross domestic product — the nation’s output of goods and services — rebounded from a lackluster 0.5% expansion the last quarter of 2025 when growth was hobbled by the 43-day federal government shutdown.

The first-quarter growth, which covered the first month of the Iran war, was a downgrade from the 2% expansion Commerce initially reported.

Gas prices averaged of about $4.50 a gallon nationwide for three weeks this month before slipping to $4.43 on Thursday, according to the AAA motor club. Gas averaged $2.98 a gallon the day before the Iran war began.

Yet the cost of many other goods and services have picked up in recent months, raising concerns among many Fed officials that inflation is being pushed higher by tariffs and other factors in addition to the war. The cost of services such as dental visits, car repairs and veterinarian visits have been rising sharply, and clothes, toys, and groceries are also seeing outsize price gains.

Rapid investment in artificial intelligence centers also appears to be driving up the cost of computer equipment and software, adding to inflationary pressures. Electricity prices have also spiked from a year ago.