House Natural Resources Chair Bruce Westerman said Wednesday his committee plans to play a role in upcoming negotiations toward a third Republican party-line budget package, potentially pursuing additional oil and gas lease sales to help offset the bill’s price tag.
Westerman’s comments come as Republican leaders aim to advance two reconciliation bills before the summer recess: a narrow measure focused on immigration funding and a broader “Reconciliation 3.0” plan expected to center on defense but could potentially include energy provisions as well.
The Senate plans to clear the immigration-focused bill this week so the House can pass it next week. But details on the next package remain unclear, with House leaders looking to have a blueprint ready in the coming weeks.
“Yeah, we’ll be involved,” Westerman said.
Asked what policies the committee could pursue, Westerman pointed to additional oil and gas lease sales on federal lands. Republicans’ first reconciliation package — the One Big Beautiful Bill Act — mandated dozens of lease sales intended to generate federal revenue.
“Energy is where the big pay-fors are,” Westerman said. “We had one lease sale out in New Mexico the other day that generated over $4 billion.”
The Interior Department credited the One Big Beautiful Bill Act for that May oil and gas lease sale. The administration has struggled, however, to generate similar industry interest in mandated offshore lease sales.
In total, the oil and gas leasing provisions of last year’s so-called megalaw were forecast by the Congressional Budget Office to bring in $16.2 billion over 10 years.
Senate Republicans have been generally skeptical of the third reconciliation effort getting off the ground, much less discussing specific details of what the proposal could include.
“I don’t believe there’s gonna be a third reconciliation,” said Sen. John Kennedy (R-La.) in May, even though his an ardent supporter of such a plan.
Senate Environment and Public Works Chair Shelley Moore Capito (R-W.Va.) told POLITICO she does not expect her committee to play a role in reconciliation negotiations going forward.
Still, Westerman was hopeful to revive provisions that were stripped from the first reconciliation package after adverse rulings from the Senate parliamentarian.
Among provisions removed were measures deeming offshore oil and gas projects compliant with the National Environmental Policy Act and fees on renewable energy projects on public lands.
“We learned some stuff from that, so I think we can adjust and get a lot more good policy through Reconciliation 3.0,” Westerman said.
Reporters Timothy Cama and Josh Siegel contributed to this report.
