The Republican Study Committee (RSC) has released a sweeping policy framework titled Making the American Dream Affordable Again, outlining its priorities for a second budget reconciliation bill in the current Congress. While the framework is not legislation, it offers a detailed preview of policy initiatives congressional leadership may attempt to advance through reconciliation—a process that allows passage without bipartisan support.
The proposal is expansive in scope, addressing housing affordability, health care reform, energy policy, family support, and federal tax and spending priorities. Taken together, it reflects a broader effort to reduce federal costs while reshaping how benefits and assistance are delivered to individuals, families, and employers.
Core Policy Themes in the Framework
The RSC framework identifies several major policy pillars, each designed to address affordability concerns while promoting individual responsibility and market-driven solutions.
Housing affordability and homeownership.
A central focus of the framework is restoring access to homeownership. Proposed measures include expanded down-payment assistance, mortgage portability, capital-gains relief, and enhanced savings vehicles designed to help first-time buyers accumulate funds more efficiently. These proposals aim to reduce barriers to entry in the housing market while limiting long-term government intervention.
Health care restructuring.
Health care reform is another cornerstone of the framework. The proposal calls for the creation of Health Freedom Accounts, reform of Pharmacy Benefit Manager (PBM) practices, and a redesign of Affordable Care Act (ACA) subsidies. The framework also emphasizes expanded coverage alternatives for small employers, signaling continued interest in reducing regulatory complexity and offering more flexible benefit structures outside traditional ACA models.
Codification of Trump-era executive actions.
The framework seeks to formalize a number of executive actions from the prior Trump administration, particularly in areas related to deregulation and energy policy. Codification would provide longer-term stability by embedding these policies into statute, rather than relying on executive authority that may change with future administrations.
Spending reductions and welfare reform.
Significant federal spending cuts and reforms to eligibility for certain welfare programs are also proposed. The stated goal is net deficit reduction, coupled with a restructuring of federal benefit programs to focus more narrowly on targeted populations. These changes could have downstream effects on labor markets, workforce participation, and benefit coordination.
Why the Framework Matters for Small Businesses and Employers
From a small-business and employer perspective, the framework is notable for its consistent emphasis on flexibility, simplification, and tax-advantaged savings. Throughout the document, the RSC highlights policies intended to reduce administrative burdens and provide employers with more options in structuring benefits.
Proposals include expanded tax-advantaged savings mechanisms such as Trump Accounts, enhanced retirement contribution opportunities, and streamlined benefit designs. These initiatives are framed as tools to help employers attract and retain workers while managing costs more effectively.
For small employers in particular, the emphasis on alternative health coverage models and simplified benefit structures may signal future efforts to reduce compliance complexity under existing ACA frameworks. While specific implementation details remain unclear, the direction suggests continued pressure to move away from one-size-fits-all benefit mandates.
The Role of Budget Reconciliation
Importantly, the framework is designed with budget reconciliation in mind. Reconciliation allows Congress to advance fiscal legislation with a simple majority vote in the Senate, bypassing the need for bipartisan consensus. As a result, proposals included in reconciliation packages often reflect the priorities of the majority party more directly than traditional legislation.
Not all elements of the RSC framework are likely to advance, and political negotiations will shape the final scope of any reconciliation bill. However, the document provides a clear window into the policy direction congressional leadership may pursue if given the opportunity.
Looking Ahead
While Making the American Dream Affordable Again is not binding law, it serves as a strategic blueprint for future legislative efforts. Employers, particularly small and mid-sized businesses, should monitor these developments closely. Changes to health care structures, tax-advantaged savings, and benefit eligibility could have meaningful implications for workforce planning, benefits strategy, and compliance obligations.
As reconciliation discussions continue, staying informed and proactive will be essential for employers navigating an evolving policy landscape.