August 7, 2026 Week in Review
As both chambers are out of session for the August recess, with the House returning on August 31 and the Senate on September 14, our next publication will be on August 31. We will continue to issue our weekly Federal Grants Update.
Congress:
- FY 27 Appropriations: On Monday, August 3, the Senate voted 89-4 on the motion to proceed on the legislative vehicle for a continuing resolution (CR). The Senate CR would fund federal agencies, delay the OMB proposed rule, and provide a clean extension of surface transportation reauthorization through December 11, 2026. The measure also contains a provision delaying the federal ban on certain intoxicating hemp-derived THC products from November 12 to December 11, 2026. That provision has drawn opposition from a group of Republicans led by Sen. Ted Budd (R-NC), who are threatening to oppose the CR unless the provision is removed, complicating efforts to quickly advance the legislation. President Trump and White House officials are reportedly working to rally Senate support for the CR. The Senate is scheduled to hold a cloture vote today on a substitute amendment to H.R.6500, the legislative vehicle for the Senate CR.
- Reconciliation 3.0: Senate Majority Leader John Thune (R-SD) said to expect an initial vote on the House-passed Reconciliation 3.0 measure on Friday, August 7. However, Republicans have previously said the budget resolution does not have the votes to advance in the Senate, meaning the expected initial vote today is unlikely to secure the simple majority needed for passage.
- Surface Transportation Reauthorization: As the Senate prepares to vote on extending expiring surface transportation programs through December 11, 2026 as part of the CR, Senate Commerce Committee Chair Ted Cruz (R-TX) said his committee is still working actively on its portion of the reauthorization bill. Chair Cruz added that the Commerce Committee is working on a national regulatory framework for passenger autonomous vehicles, which he hopes to include in the legislation. Senate Environment and Public Works (EPW) Committee Chair Shelley Moore Capito (R-WV) said she thinks the EPW title needs to be released before the Senate Commerce, Banking, and Finance Committee release their portions of the package.
- Farm Bill: The Senate Agriculture Committee failed to advance the Committee’s updated farm bill text in a 10-11 vote on Thursday, August 6. The updated text offered a one-year delay in requiring states to pay for some Supplemental Nutrition Assistance Program (SNAP) benefits, language to authorize year-round E15 sales, and increased funding for a program that distributes food through food banks in hopes of attracting bipartisan support. However, Democrats opposed the package, arguing that the SNAP cost-sharing provision should be delayed for two years instead of one. Following the vote, Senate Agriculture Committee Chair John Boozman (R-AR) recessed the panel indefinitely, allowing him to call members back to revisit the bill at any point, including in September after the August recess.
- Permitting: Following a meeting between leaders of the Senate Environment and Public Works (EPW) and Energy and Natural Resources Committees, EPW Ranking Member Sheldon Whitehouse (D-RI) said negotiations on a permitting reform package have been pushed to September. Democrats continue to advocate for provisions that would restrain the administration’s power to cancel projects or stall approvals for renewable energy projects and measures to boost interstate transmission lines. Meanwhile, Republicans are seeking changes to the National Historic Preservation Act (NHPA) and limits on states’ authority to reject projects under the Clean Water Act.
- Senate Nominations: On Tuesday, August 4, the Senate Judiciary Committee advanced Todd Blanche’s nomination to be attorney general in a 12-10 vote. Todd Blanche secured his 50th Senate vote from Sen. Bill Cassidy (R-LA) on Friday, August 7, positioning Blanche for final Senate confirmation later today. Senate Republicans are voting on an “en bloc” package of 74 nominations on Friday, August 7, including David Cummins for TSA administrator and Hal Duncan to be deputy director of OMB, before lawmakers leave in August.
Trump Administration:
- HHS Issues Head Start Proposed Rule: The Department of Health and Human Services (HHS) issued a proposed rule, entitled Reducing Federal Burden for Head Start Programs, on Friday, August 7 that would significantly revise Head Start regulations. The proposed rule reportedly will shift federal standards around group sizes, classroom ratios, background checks, and transportation, as well as cap administrative spending from 15 percent to 5 percent and set new nutrition and physical activity requirements. Comments are due October 6, 2026.
- Trump Issues Two Immigration-Related EOs: On August 6, President Trump issued two immigration-related executive orders (EOs). The first EO, entitled “Continuing to Protect the Meaning and Value of American Citizenship,” directs all executive departments or agencies to deny citizenship documents to children, including those born to foreign diplomatic staff working in the U.S., those born to “alien enemies” of the U.S., and children born to women who enter the U.S. for the sole purpose of giving birth. The second EO, entitled “Ending Birth Tourism,” directs the Secretaries of State and Homeland Security to deny any visa or other travel authorization to women entering the U.S. for the sole purpose of giving birth.
- OCC and FDIC Issue Community Reinvestment Act (CRA) Proposed Rule: The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) issued a proposed rule to amend the Community Reinvestment Act (CRA) rules. The proposed rule modifies how community development grants are treated under the CRA regulatory framework to ensure that they are not diverted to other activities or excessive operating costs, codifies a list on community development activities that do and do not qualify for CRA credit, and limits consideration of community development grants to grants or donations directly used for a plan, project, or initiative with community development as a primary purpose. Comments are due September 29, 2026.
The Week’s News: