Republicans in Congress are divided over a last-ditch effort to pass economic legislation before Election Day as federal data shows growth slowing and inflation remaining well above the Federal Reserve's 2% target. Economic growth eased to 1.5% in the second quarter of 2026 from 2.1% in the first quarter, while the personal consumption expenditures price index rose 0.2% in the month, producing an annual inflation rate of 3.7%. Consumer confidence also fell in August from July. House Majority Leader Steve Scalise has proposed a fourth budget reconciliation package, a fast-track bill that can pass the Senate by simple majority, featuring additional pro-growth tax cuts, efforts to reduce waste and fraud, and increased taxpayer refunds. Sen. Josh Hawley has proposed $600 tariff rebate payments for almost all Americans and dependent children, amounting to $2,400 for a traditional family of four. Other Republicans want a broader affordability agenda covering housing, energy and health care. Republican leaders, including Senate Majority Leader John Thune, oppose opening the Senate Finance Committee's jurisdiction to votes on tax and health care measures, while Senate Budget Committee Chairman Ron Johnson is working on a budget resolution that could unlock a third reconciliation package. The House is expected to return next week to consider a continuing resolution, or temporary government-funding bill, through Dec. 11, before recessing again during the week of Labor Day. Both chambers are scheduled to sit for the final three weeks of September, but lawmakers disagree over whether any major economic initiative can pass before year-end.