House and Senate Action

Both the House and Senate are in session this week. It should be noted that this is the House’s final scheduled week before the traditional August recess. Lawmakers are expected to adjourn on Thursday and won’t return until after Labor Day. The Senate, on the other hand, is slated to remain in session for an additional week, though President Trump is calling on Majority Leader John Thune (R-SD) to shorten or delay the recess in order to continue advancing executive nominations.

House

The House is set to take up several high-profile bills before leaving town. One measure – the Stop Illegal Entry Act (H.R. 3486) – would increase criminal penalties for individuals who unlawfully enter or reenter the United States. Supporters say the bill is intended to strengthen immigration enforcement, while opponents have raised concerns about its potential effects on due process and humanitarian protections.

The House will also consider legislation – the Promoting Efficient Review for Modern Infrastructure Today (PERMIT) Act (H.R. 3898) – that would overhaul permitting procedures under the Clean Water Act. The bill aims to accelerate infrastructure project timelines by streamlining environmental reviews. Proponents argue it would reduce delays and improve project delivery, while others caution that it could limit environmental oversight and public input.

The full House schedule is available here.

Senate

Across Capitol Hill, the Senate will consider the nomination of Terrance Cole to be DEA administrator. In addition, Majority Leader Thune has scheduled a procedural vote for Tuesday on the first fiscal year 2026 appropriations bill - Military Construction and Veterans Affairs (MilCon-VA). While the legislation advanced out of committee with strong bipartisan support, it's unclear whether it will clear the 60-vote threshold needed to overcome a filibuster on the floor. That uncertainty stems, in part, from lingering Democratic opposition in the wake of the recently approved $9 billion funding rescissions package (detailed below), which has strained bipartisan cooperation on spending matters. Thune may also opt to bundle the MilCon-VA bill with other traditionally noncontroversial appropriations measures to improve its chances of passage.

The Senate’s daily schedule is available here.

Congress Approves Partisan Rescissions Package

Last week, Congress approved a White House-supported plan to rescind $9 billion in previously appropriated federal funds. The package targets a range of programs, including public broadcasting and foreign aid. An earlier version proposing $9.4 billion in cuts was revised following bipartisan concerns, which led to the restoration of $400 million for PEPFAR, the U.S. initiative to combat HIV/AIDS.

While the measure drew broad Republican support, lawmakers from both parties raised concerns about the precedent of executive-initiated rescissions. Some warned it could weaken the legislative branch's constitutional authority over federal spending and complicate negotiations on FY26 appropriations, increasing the risk of a shutdown later this year.

Sens. Schiff, Hirono Reintroduces Legislation That Seeks to Stabilize Property Insurance Markets

Senators Adam Schiff (D-CA) and Mazie Hirono (D-HI) recently reintroduced legislation – the Incorporating National Support for Unprecedented Risks and Emergencies (INSURE) Act (S. 2349) – that seeks to stabilize the home insurance market by creating a federal catastrophic reinsurance program within the Department of the Treasury to cap the liability of insurance companies in the case of a catastrophic event above a certain threshold. The threshold would be developed by the Treasury Secretary and an advisory committee of experts.

Pursuant to the legislation, participating insurers would be required to cover all natural disasters, including wildfires, severe storms, wind, hurricanes, and floods. It also leaves open the possibility that coverage against earthquakes could eventually be included in an all-perils policy. Finally, the bill seeks to improve market monitoring through the Office of Financial Research and the Federal Insurance Office in collaboration with state insurance regulators. 

Representatives Sydney Kamlager-Dove (D-CA), Salud Carbajal (D-CA), Doris Matsui (D-CA), and Debbie Wasserman Schultz (D-FL) have sponsored companion legislation (H.R. 4504) in the House.

House Appropriators Advance FY26 Spending Bills

The House Appropriations Committee has been making incremental progress on its fiscal year (FY) 2026 spending bills. Last week, the full committee approved two measures – the Transportation-Housing and Urban Development (T-HUD) and Energy and Water Development appropriations bills – both of which advanced on a party-line vote. Several additional bills have moved forward at the subcommittee level.

In other developments, Chairman Tom Cole (R-OK) recently released updated subcommittee allocations for FY26. Under the current House plan, overall discretionary spending would be reduced by $45 billion compared to FY25 levels. Nondefense programs would see a nearly 6 percent reduction, bringing that topline to $705.6 billion, while total discretionary funding – including defense – would reach approximately $1.6 trillion.

By comparison, President Trump's budget proposal calls for a steeper reduction in nondefense discretionary spending – approximately $163 billion, or 23 percent – while maintaining flat funding for defense. Overall, that plan would cut discretionary spending by about 10 percent below the levels enacted for FY25.

Despite the progress last week, lawmakers are still far from completing action on the budget. As such, Congress will likely need a short-term funding patch to keep the government operating beyond the October 1 start of the new fiscal year.

Several key highlights are summarized below:

Transportation-Housing and Urban Development

The House T-HUD spending bill proposes $89.9 billion in discretionary funding for the Department of Transportation (DOT), the Department of Housing and Urban Development (HUD), and related agencies in FY26. This would be roughly $4.5 billion below the fiscal year 2025 enacted level.

Department of Transportation

The measure includes $22.1 billion in discretionary funding for DOT, which is $3.1 billion below current levels and $4.7 billion below the President’s budget request. When combined with $83.3 billion in obligation limitations for highway and airport trust fund programs, the bill provides a total of $105 billion in transportation-related budgetary resources.

Several DOT subagencies would see funding increases under the bill. For example, the Federal Highway Administration (FHWA) would receive $64.4 billion, which would be nearly $2 billion more than current levels. The Federal Aviation Administration (FAA) would be in line for $23.3 billion, an increase of $2.3 billion over FY25. The Federal Railroad Administration (FRA) would also receive a modest funding boost. On the other end of the spectrum, the bill would provide $14.9 billion in total budgetary resources for the Federal Transit Administration, which amounts to a nearly $1.8 billion cut.

It should be noted that the legislation encourages DOT to streamline its competitive grant application process by developing a “common application” for smaller and rural applicants.

Department of Housing and Urban Development

The bill proposes $67.8 billion in discretionary funding for HUD, representing a $939 million decrease from the FY25 enacted level. Several major programs would see significant reductions or eliminations. The HOME Investment Partnerships Program, a key flexible funding source for affordable housing, would receive no new funding, based on the rationale that billions from the American Rescue Plan Act remain unspent. The Choice Neighborhoods Initiative would be eliminated entirely. The Housing Choice Voucher Program (also known as Section 8) would be flat-funded at just over $32 billion, although administrative fees would be reduced by nearly $800 million.

Some HUD programs would see increases. For example, the Project-Based Rental Assistance program would receive just over $17 billion, an increase of $237 million from FY25. Homeless Assistance Grants would rise by $107 million to a total of almost $4.2 billion. The bill also encourages HUD to prioritize programs that address mental health and substance use disorders, foster accountability, and support pathways to self-sufficiency.

Energy and Water Development

In addition to T-HUD, the House Appropriations Committee is also on track to advance its fiscal year 2026 Energy and Water Development spending bill, which would provide $57.3 billion in discretionary funding for the Department of Energy (DOE), U.S. Army Corps of Engineers, Bureau of Reclamation, and related agencies. This represents a reduction of approximately $766 million compared to the FY25 enacted level.

Department of Energy (DOE)

The bill proposes $48.8 billion for the Department of Energy (DOE), which is $1.4 billion below the FY25 enacted level but $2 billion above the administration’s FY26 budget request. While overall funding remains relatively stable, the bill reflects a notable shift in DOE priorities. It increases investments in nuclear energy, critical mineral development, and national security-related programs, while significantly scaling back funding for several clean energy and technology demonstration initiatives.

Specifically, the legislation would eliminate funding for the Office of Clean Energy Demonstrations and reduce the Office of Energy Efficiency and Renewable Energy (EERE) by nearly 50 percent. Both offices have played a key role in implementing programs under the Bipartisan Infrastructure Law and the Inflation Reduction Act, supporting state and local efforts to modernize the electric grid, improve building energy efficiency, and accelerate energy innovation.

The Office of Grid Deployment would also see its budget reduced by more than half, while the Office of Electricity would receive a nearly 20 percent cut. The Office of Fossil Energy and Carbon Management, which supports research and development for carbon capture and other fossil fuel-related technologies, would receive approximately $688 million, down $178 million from current levels.

U.S. Army Corps of Engineers

The bill includes nearly $9.9 billion for the U.S. Army Corps of Engineers, an increase of over $1 billion relative to current funding levels. Within that amount, roughly $2 billion is directed to flood and storm damage reduction activities.

Bureau of Reclamation

The Bureau of Reclamation and related Interior Department activities would receive a total of nearly $1.9 billion, slightly above the FY25 enacted level. That total includes nearly $127 million for rural water supply projects and $201 million for water storage initiatives authorized by the Water Infrastructure Improvements for the Nation (WIIN) Act, which supports expanded water storage capacity in drought-prone regions. 

House Committee on Appropriations

• Monday, July 21 | 5:30 p.m. ET | The Subcommittee on Financial Services will markup its fiscal year 2026 spending bill.
• Tuesday, July 22 | 10:30 a.m. ET | The full committee will consider the FY26 Interior spending bill.
• Wednesday, July 23 | 10:00 a.m. ET | The full panel will meet to consider the FY26 State-Foreign Operations funding measure.
• Thursday, July 24 | 10:00 a.m. ET | The full panel will markup the FY26 Commerce-Justice-Science spending bill.
• Mark Up Details

Senate Committee on Appropriations

• Thursday, July 24 | 9:30 a.m. ET | The full committee will consider two (of 12) FY26 spending bills this week, including those covering Interior-Environment and Transportation-Housing and Urban Development.
• Markup Details

House Committee on Transportation Infrastructure

• Wednesday, July 23 | 10:00 a.m. | The Subcommittee on Economic Development, Public Buildings, and Emergency Management will hold a hearing to evaluate how FEMA can become more agile and effective in responding to disasters and examine the nation’s current state of disaster readiness, response, and recovery. FEMA Acting Administrator David Richardson will testify.
• Hearing Details

House Committee on Small Business

• Wednesday, July 16 | 10 a.m. | The Subcommittee on Oversight, Investigations, and Regulations will hold an oversight hearing to examine the Small Business Administration's disaster assistance programs.
• Hearing Details

House Committee on Natural Resources

• Tuesday, July 22 | 2:15 p.m. | The Subcommittee on Water, Wildlife, and Fisheries will meet to consider a handful of bills on the committee docket, including legislation (H.R. 180) proposed by Congressman Tom McClintock (R-CA) that aims to increase transparency in the listing of species as endangered or threatened under the Endangered Species Act (ESA).
• Wednesday, July 23 | 10:00 a.m. | The full committee will meet to consider over a dozen bills, including legislation (H.R. 178) that would require the U.S. Forest Service to immediately suppress all wildfires within 24 hours. Another bill – sponsored by Reps. Josh Harder (D-CA) and Doug LaMalfa (R-CA) – would ensure that local fire departments are fairly and quickly compensated for fighting fires on federal lands. The committee will also consider legislation (H.R. 528) that would require the Department of Interior, in coordination with states, local governments, tribes, and colleges to identify critical lands in need of rehabilitation after natural disasters and support projects through grants, contracts, or cooperative agreements.
• Markup Details

House Committee on Natural Resources

• Tuesday, July 22 | 10:15 a.m. | The panel will hold an oversight hearing titled, "Permitting Purgatory: Restoring Common Sense to NEPA Reviews."
• Hearing Details

House Committee on Science, Space, and Technology

• Wednesday, July 23 | 10 a.m. | The full committee will meet to consider legislation - the Weather Act Reauthorization Act (H.R. 3816) - that seeks to improve NOAA's weather research, supports improvements in weather forecasting and prediction, and expands commercial opportunities for the provision of weather data.
• Markup Details

Senate Committee on Environment and Public Works

• Wednesday, July 23 | 10:00 a.m. The full committee will hold a hearing on the nominations of Katherine Scarlett to a be a member of the Council on Environmental Quality and Jeffrey Hall to be an Assistant Administrator of EPA.
• Wednesday, July 23 | 3:00 p.m. The Subcommittee on Transportation and Infrastructure will hold a hearing to discuss proposals to improve the nation's transportation infrastructure.
• Hearing Details

Senate Committee on Energy and Natural Resources

• Wednesday, July 23 | 10:00 a.m. The full committee will hold a hearing to identify challenges to meeting increased electrcity demand.
• Hearing Details