The likelihood of further Republican-backed tax law changes is in flux as GOP leaders pursue a second reconciliation bill — however, the primary aim of that bill is funding the Department of Homeland Security (DHS).

The possibility of passing further tax legislation as a follow-up to last year’s One Big Beautiful Bill Act (OBBB) has gone from nearly zero to being “in the equation,” PwC’s Rohit Kumar said during an April 8 briefing. He explained that a dispute over Department of Homeland Security funding has prompted Republican leadership to pursue a budget reconciliation bill, but “there’s a real question mark about whether or not tax is going to be a component.”

Just a few weeks ago, the consensus view was that 2026 would be a “pretty slow year for tax,” said Kumar. Following a major tax bill in 2025, many assumed the Tax Code was likely to remain stable for the foreseeable future, he explained.

Now, said Kumar, “Congress is having an honest-to-goodness conversation about another reconciliation, which seems extremely likely to happen in one form or another.” But whether tax will find its way into the effort — and if so, what specific tax issues will be addressed — remains unclear.

To dig deeper, visit the original article on the Thomson Reuters blog.