Mandatory Enforcement: Congress Returns for Reconciliation 2.0

WASHINGTON, D.C. — May 10, 2026 — The US Congress returns to the Capitol tomorrow, Monday, May 11, to initiate the final push for Reconciliation 2.0. This legislative sequel to 2025’s One Big Beautiful Bill Act (OBBBA) aims to bypass annual appropriations gridlock by cementing a multi-year, mandatory funding stream for immigration enforcement. While the OBBBA focused on tax cuts, Reconciliation 2.0 is a “Security and Enforcement” package designed to resolve the ongoing partial shutdown of the Department of Homeland Security (DHS).

The Fiscal Framework: The $140 Billion “Ceiling”

The Budget Resolution (S. Con. Res. 33) provides strict instructions to four key committees. The goal is to move ICE and CBP funding from “discretionary” to “mandatory” status through 2029.

• Spending Targets: The House and Senate Judiciary and Homeland Security committees are directed to increase the deficit by up to $70 billion each over 10 years.
• Total Potential: Technical instructions allow for a surge of up to $140 billion if both jurisdictional paths are fully utilized.
• Insulated Budgets: By making these “mandatory” accounts, the GOP-led majority aims to protect enforcement budgets from future political shifts.

The “Offset” Watch: How it’s Paid For

Tax practitioners are on high alert for Section 2026 Revenue Offsets. While the majority remains committed to the “low-tax” stance of the OBBBA, the money must come from somewhere:

Key Deadlines: The June 1st Sprint

The legislative timeline is exceptionally aggressive to meet the June 1st funding deadline:

• May 11 (Tomorrow): Committees begin the formal “markup” of legislative text.
• May 15 (Friday): Deadline to submit final text to Budget Committees.
• May 18–22: Senate floor debate and “Vote-a-Rama.”
• June 1: Target for the final bill to reach the President’s desk.

The Compliance Shift

For tax and payroll professionals, Reconciliation 2.0 isn’t about rates—it’s about risk. A $140B surge in ICE and CBP funding signals a massive increase in work authorization audits (Form I-9) and border-related customs enforcement. This isn’t a traditional “tax bill,” but it is a massive compliance bill. Companies with global supply chains or diverse workforces should prepare for an enforcement environment far more clinical than anything seen in the last decade.