Yes, Apple will be releasing two new budget iPhone. Tentatively it will be called iPhone 9 and 9plus. A leaked IOS 14 development built suggests there will be two new devices 4.7 and 5.5-inch iPhone running Apple latest and greatest A13 Bionic chip.
It will be replacing the iPhone 8 and 8 plus. This iPhone will have Touch ID and a solid-state home button and the same form factor as 8 and 8plus but updated internals.
These phones are likely to be coming in 3 colors
New features iPhone 9 and 9 plus would be getting over 8 series
A13 Bionic chip (same as iPhone 11 and 11 pro)
3 gigabytes of ram
Stereo sound video recording (a feature first seen on iPhone xs )
This iPhone would entice that old iPhone user to upgrade to newer internal but same form factor
iPhone 9 and 9plus will be releasing in WWDC , which tentatively will on 1st June 2020