**House Republicans advanced a July 22 budget resolution (H.Con.Res.113) that instructs committees to submit reconciliation recommendations by September 11, 2026, targeting defense funding, agriculture aid, and implementation of election-related measures.** This follows the June passage of Reconciliation 2.0, a roughly $70 billion package for immigration enforcement signed into law. Internal divisions persist, with fiscal conservatives demanding dollar-for-dollar offsets and others prioritizing spending priorities amid White House calls for substantial defense increases. Senate Republicans have signaled reluctance to advance the blueprint before the November midterms due to limited floor time and concerns over exposing members to difficult votes. A recent continuing resolution extending funding through December 11 avoided an immediate shutdown but did not resolve the reconciliation path. Trader sentiment reflects these procedural hurdles and narrow majorities in both chambers.