Saving America Through Growth & Security: Top 5 Reconciliation 3.0 Policies to Build on America First Wins in Congress

Download

The following outlines five must-have elements for Congress to consider in its third reconciliation package to promote an agenda of economic growth and security that will:

• Keep America safe by fully funding national security, replenishing our munitions, and ending sanctuary cities (while non-reconcilable, reauthorizing FISA is a priority);
• Secure our elections by requiring a voter ID;
• Keep our children safe by ending men and boys in girls’ sports, and banning child sex mutilation;
• Grow our economy, including the exclusion of capital gains for owner-occupied housing;
• Ending corruption and the abuse of taxpayer money by codifying fraud reforms identified by Vice President Vance and the Fraud Task Force.

These policies build on the incredible success of the Working Families Tax Cuts (WFTC) that President Donald J. Trump signed into law on July 4, 2025, and would bring even greater prosperity to families across our nation.

WFTC, for example, shielded working families from one of the steepest tax increases in history last year to the tune of over $2 trillion. The landmark act went on to save taxpayers $2.5 trillion, strengthen American businesses to create jobs, advance domestic energy production, and make America’s streets safer through investments in border security.

Critical to building on these successes (such as ending the abuse of taxpayer money) is the unity of governance led by Speaker Johnson and Leader Thune in Congress. Leading an agenda of economic growth and security cannot happen if the far Left controls even one chamber of government.

Bolstering President Trump’s efforts to eliminate fraud, vital for promoting an agenda of economic growth and security, were the fiscal and oversight reforms enacted under WFTC. These reforms helped identify and close audit gaps that had allowed billions in untracked expenditures to accumulate over the course of decades. Highlighting what these reforms uncovered is a recent nonpartisan Government Accountability Office (GAO) report published in April, citing $186 billion in improper payments in FY 2025 across 64 programs, an increase of $24 billion from the previous fiscal year. Most of these payments resulted from overpayments.

Commonsense solutions that save even more taxpayer money include centralizing all federal government lending programs under the Treasury Department and creating a unified loan servicing platform at lending.gov. Further modernizing Treasury's IT infrastructure as part of this consolidation—a reform expected to receive a favorable CBO score and potential bipartisan support, given comments from former tax commissioners—could eliminate overpayments and save taxpayers up to $200 billion. Still other policies that would add to these savings include charging government unions for the use of official time and equalizing tax treatment between union and corporate political expenditures, which would save taxpayers another $11 billion.

The result of the pro-growth provisions in the WFTC is that the real GDP of our nation is expected to grow at a 2.5% annual rate, adding $2.3 trillion to our economy. This pro-growth America First approach creates national security, stability, prosperity, a pathway out of poverty, and solvency for programs that the most vulnerable of our population need the most. The following outlines further policies for reconciliation and why a third bill is so vital.

Pro-Growth Economic Reforms to Protect and Secure our Nation

1. Keep our streets safe by fully funding national security, ending sanctuary cities, reauthorizing FISA, and replenishing our munitions.
   1. Fully equip our warfighters by rebuilding America’s arsenal of freedom, expanding U.S. defense production capacity, and replenishing the munitions and military capabilities needed to deter adversaries and defend the homeland. At the center of this effort is capacity: the ability to build, scale, mobilize, sustain, and surge the arsenal of freedom faster and better than our adversaries. Congress should use reconciliation to strengthen the funding architecture needed to send stable demand signals to industry, move resources into sustained production, and ensure acquisition reforms translate into funded capacity. Maintaining American military superiority requires the industrial capacity to rapidly build, field, sustain, and replenish mission-ready capabilities at scale.
   2. Strip the federal tax exemption from municipal bonds issued by jurisdictions designated by the Department of Justice (DOJ) as sanctuary jurisdictions until they come into compliance with federal immigration law. DOJ should maintain a list of these jurisdictions.
   3. Amend Section 501(c)(3) rules to deny tax-exempt status to NGOs obstructing federal immigration law enforcement (e.g., legal services funds for evading detainers, "Know Your Rights" programs specifically designed to stop ICE operations, tracking ICE movements, etc.).
   4. Add an explicit statutory condition that a tax-exempt organization cannot obstruct federal immigration law enforcement on top of existing requirements, such as not participating in political campaigns. (Of note, IRS tracking compliance. One possible solution to that could be requiring automatic revocation by the IRS if the DOJ designates an NGO as obstructing federal immigration law enforcement. We would need to investigate whether this addition would keep the policy Byrd-compliant.) Provide mandatory funding for Section 287(g) reactivation and expansion.
   5. Add provisions similar to the Shut Down Sanctuary Policies Act, including denying jurisdictions federal funds that violate or contradict policies laid out in 8 U.S.C. 1373.
2. Save America by securing our elections with a voter ID.
   1. Include critical reconcilable SAVE America Act provisions within the reconciliation package that incentivize states to strengthen protections for federal elections and codify President Trump’s election-integrity executive orders. This would help restore confidence in our constitutional voting system.
   2. These provisions would lay the legal groundwork for states to require proof of United States citizenship to register to vote, require voters to present photo identification when voting in federal elections, strengthen voter-list maintenance to remove non-citizens from existing voter rolls, and move our nation back toward Election Day, not election season
   3. These reforms would shift election administration away from self-attestation and toward objective verification, helping ensure that only American citizens vote in American elections and that lawful votes are not diluted by ineligible ballots.
   4. Give states the option to secure their elections.
3. Keep men out of women’s and girls’ sports; ban child sex mutilation.
   1. Applying a progressive, tiered rate structure to bundled media rights revenues, like the one used in the university endowment provisions in the One Big Beautiful Working Families Tax Cuts Act, would provide a fair structure for funding the media bundling provisions under the Sports Broadcasting Act and provide a pay for up to $2 billion.
   2. Taxpayer dollars should not be used for gender transitions for minor children. The United States had the most permissive laws during the Biden era surrounding transgender treatments for children when compared to other Western nations. WFTC cut taxpayer funding for gender transitions for minor children through funding for Planned Parenthood, the largest provider of abortions and gender transition treatments for minors.
   3. Hold big pharmaceutical and insurance companies accountable for their marketing of treatments by boosting oversight and investigations at HHS.
4. Growing our economy, including the exclusion of capital gains for owner-occupied housing.
   1. IRS data shows that more than two of three tax returns reporting capital gains have incomes of less than $200,000. Inflation-adjusting the tax would instantly inspire a selling of old assets and then inject potentially hundreds of billions of dollars into promising entrepreneurial startups that could grow to be the next generation of Microsoft, Nvidia, or Walmart.
   2. Double the tax-exempt portion of the sales of homes, which has not been updated in 30 years. When someone sells their primary residence and uses that equity to buy another home, they must pay capital gains taxes on the portion above $500K for couples, $250K for individuals. So, many families keep their home for much longer because they will have to pay capital gains tax if they move. Doubling the exclusion to $1M and $500K, then index for inflation moving forward, updates and closes this loophole.
   3. Freedom to build deregulated areas, like opportunity zones, would provide the infrastructure to offer low cost of capital, and access to a reduced mortgage rate product, as introduced by Senator Hagerty.
   4. Expand success of pro-growth Opportunity Zones by fixing the interim-gains issue. Qualified Opportunity Funds (QOFs) should be allowed to sell or dispose of underlying Qualified Opportunity Zone Property and reinvest the proceeds in replacement Qualified Opportunity Zone Property without triggering immediate taxable gain, provided the investor maintains the required 10-year QOF holding period.
   5. Create a higher-tier "Opportunity Zones Plus" (OZ+) benefit for housing built in designated communities that meet specific affordability requirements.
   6. Allow 529 account funds to be used toward down payments and home purchases for first-time homebuyers, or toward a child's first home purchase, thereby promoting savings discipline and homeownership access.
   7. Create more affordable alternatives to a 4-year degree by returning education authority to the states, removing barriers to career and technical education, and fully eliminating the onerous and divisive 90/10 rule that limits for-profit institutions’ federal funding ratios and further investment to students.
   8. Expand HSA usage by removing contribution caps, adjusting 401(h) account investment limits, and granting all Americans access to both HAS and 401(h) accounts.
   9. Reform the Basic Health Program at CMS to enable working-poor individuals to access low-cost, needs-appropriate care.
   10. Permanently expand Association Health Plans (AHPs) to a broader universe of small businesses.
   11. Enable increased a la carte health plan options through cafeteria plan reforms.
   12. Clarify the statutory definition of "creditable coverage" to allow states to offer innovative models such as Farm Bureau plans.
   13. Allow seniors to defer Social Security enrollment past age 65 while still working and create an optional Medicare Part E enrollment pathway.
5. End corruption and the abuse of taxpayer money by codifying fraud reforms by Vice President Vance and the Fraud Task Force.
   1. Strengthening federal enforcement authority and oversight to protect taxpayer money.
   2. Grant applicable agencies (DOJ, HHS, USDA, DOL, SBA, EPA, Interior, and Education) the authority to suspend or freeze funds based on credible suspicion of fraud or other violations.
   3. Exempt relevant enforcement actions from Administrative Procedure Act (APA) procedural requirements to enable swift action.
   4. Revoke lower courts' authority to impose injunctions on Agency enforcement actions.
   5. Expand oversight to review and probe all categories of providers under federal insurance programs administered by state entitlement offices, including Minnesota and other high-risk states.
   6. Review fraud exposure across all Agency block grants and waiver programs, both discretionary and mandatory.
   7. Apply the landmark accountability and risk-sharing reforms under the Working Families Tax Cuts (Medicaid/SNAP) to all federal grant programs, as necessary.
   8. Add forensic enforcement resources to ensure responsible stewardship across all federal disbursements.
   9. Generate up to $400 billion in taxpayer savings and budgetary offsets through these fraud-reduction and payment-integrity reforms.
   10. Include a mandatory supplemental appropriation to the legislative branch to establish a new Congressional Office dedicated to enforcing Member and senior staff compliance with STOCK Act financial disclosure requirements.