House and Senate Action

Both chambers gaveled into session on Monday, with much of the focus this week shifting to the Senate, where lawmakers are weighing the merits of the House-passed budget reconciliation package (H.R. 1). In the coming days, key Senate committees with jurisdiction over the thorniest provisions in the bill are expected to release their proposed changes to the House measure. Notably, any modifications will have to be approved by the lower chamber – a reality that threatens to stall or derail President Trump’s centerpiece legislation. More details on the latest in the reconciliation process are below, and the Senate’s daily schedule can be found here.

For its part, the lower chamber will consider several measures this week, including President Trump’s $9.4 billion rescissions package (H.R. 4). Introduced by Majority Leader Steve Scalise (R-LA), H.R. 4 aims to claw back $8.3 billion in foreign aid and $1.1 billion in public broadcasting funds, though senators from both parties are raising concerns over proposed cuts to global AIDS prevention and public media.

Additionally, the House will take up the bipartisan HALT Fentanyl Act (S. 331), which would permanently classify fentanyl-related substances as Schedule I drugs, reflecting their high potential for abuse and deadly impact, while also expanding research into fentanyl analogs. These substances are currently subject to a temporary Schedule I classification, which is set to expire on March 31. Having already passed the Senate, the measure now awaits final action in the House.

Finally, House appropriators are expected to release draft text for a number of the fiscal year 2026 appropriations measures. In fact, several House Appropriations Subcommittees have already advanced their respective spending bills for the fiscal year that starts October 1, with additional action expected throughout the week. Additional details on the FY 2026 appropriations process are included below, and the House’s daily schedule can be accessed here.

 Senate GOP Eyes Pre-Recess Push on Reconciliation Bill

With President Trump’s Big Beautiful Bill Act clearing the House last month, the measure now rests with the Senate. This week, several Senate committees are expected to unveil their respective sections of the legislation. Senate Republican committee leaders are widely expected to make substantial changes to the House-passed version, reflecting both policy differences and political calculations within the upper chamber.

To stay on track for their self-imposed July 4th deadline for final passage, Senate GOP leaders are relying on the Senate Finance Committee to deliver legislative text by next Monday. As a result, a number of outstanding issues – including the scope of the state and local tax (SALT) deduction, proposed Medicaid changes, and the rollback of clean energy tax credits – must be resolved in the coming days. Republican leaders are particularly concerned about setting off a chain reaction, where resolving one contentious issue could complicate others. The SALT deduction, in particular, remains a central point of tension. Senate Republicans are seeking to scale back the $40,000 cap included in the House bill, prompting warnings from New York Republicans in the lower chamber who have threatened to withdraw their support if that cap is reduced.

The House bill’s rollback of clean energy credits from the Inflation Reduction Act is another flashpoint, as at least four GOP senators have voiced concern over how aggressively these credits would be phased out and are reportedly lobbying for a more gradual decline with credit structures varying by energy source. For their part, Senate Democrats are focusing on the potential economic fallout in states that would be disproportionately impacted by the repeal.

Additionally, several major policy areas remain unresolved, including the scope of Medicaid and SNAP cuts, the fate of Trump-era tax provisions, and the permanence of certain business incentives. Several Senate Republicans have voiced strong objections to the depths of the proposed Medicaid cuts and are expected to scale back some of the provisions included in H.R. 1. At the same time, fiscal conservatives – including Senator Ron Johnson (R-WI) – are concerned that the House bill would significantly increase the deficit, adding another layer of complexity to efforts to secure final passage.

Looking ahead to next week, the legislation will undergo formal review for compliance with the Byrd Rule – a procedural test used to determine which provisions are eligible under the budget reconciliation process. While several Senate committees continue to release draft text, the Finance Committee’s portion is expected to take at least a week to complete its vetting process. Even at this early stage, staff from both parties are in disputes over whether certain provisions – including those related to AI-linked broadband funding and expanded federal contempt authority – meet the strict standards required for reconciliation. In particular, Senator Josh Hawley (R-MO) has signaled a willingness to work with Democrats to eliminate the broadband-AI provision.

If the Senate meets its goal to bring the final measure to a vote by the week of June 23rd, floor action will include the typical “vote-a-rama,” where Democrats will have one final opportunity to pressure Republicans through unlimited amendment votes. Consequently, GOP leadership will be tasked with ensuring no amendments pass that could unravel the deal.

As previously reported, any changes made in the Senate must be ratified by the House, further complicating the final measure’s ultimate passage. Once the Senate acts, the House will need at least a week to move the legislation. Notably, Speaker Mike Johnson (R-LA) is expected to invoke a mandatory 72-hour review period before floor action, resulting in an incredibly tight timeline heading into the July 4th recess.

 House Appropriations Subcommittees Release Portions of FY26 Spending Package

As the Senate grapples with advancing Republicans’ reconciliation bill, the lower chamber is turning its attention to hammering out the details of the upcoming Fiscal Year 2026 appropriations package. As a reminder, after passing a short-term Continuing Resolution (CR) earlier this year, Congress has until October 1st to approve a new measure to continue funding the federal government. Several key Appropriations Subcommittees – including Transportation-HUD, Labor-HHS-Education, Interior-Environment, Financial Services, and Energy-Water Development – are set to hold hearings this week, though it remains uncertain when they’ll release the draft text of their spending bills.

For their part, the House Military Construction-Veterans Affairs (MilCon-VA) Appropriations Subcommittee and the Agriculture Appropriations Subcommittee marked up and approved their respective FY 2026 spending bills last week. On Sunday, the House Appropriations Homeland Security Subcommittee released the draft text of its spending bill ahead of its markup on Monday. Also on Monday, the House Defense Appropriations Subcommittee released its draft text, with committee markup scheduled for Tuesday.

Specifically, the Agriculture Subcommittee’s legislation includes $25.5 billion in discretionary funding, which represents a slight decrease compared to last year’s funding levels. The bill would fund programs within the Department of Agriculture, nutrition assistance, rural broadband expansion, and the Food and Drug Administration. The legislation also includes measures to limit funding for certain climate-related initiatives and would block new energy standards for USDA-financed homes.

The House Defense Appropriations Subcommittee’s draft bill proposes $66.4 billion in total funding —$3.3 billion for defense and $63 billion for non-defense. Immigration-related agencies would see uneven funding: CBP would receive nearly $19 billion (down 2%); ICE would be funded at $11 billion (up 10%); and USCIS would drop to $113 million (down 60%). The bill would eliminate some immigration-related support, including FEMA’s migrant services program, and would allocate $4.4 billion for 50,000 detention beds. FEMA would see a 16% increase to $31.8 billion, including $170 million for 112 earmarks.

The House Appropriations Committee is expected to begin markups of the draft text throughout the week (please see the relevant hearings and markups section below).

 Relevant Hearings & Markups

 Monday, June 9 | 6 p.m. House Homeland Security Appropriations Subcommittee markup of fiscal 2026 Homeland Security appropriations bill.

Tuesday, June 10 | Noon. House Defense Appropriations Subcommittee classified markup of fiscal 2026 Defense appropriations measure.

Tuesday, June 10 | 3 p.m. House Appropriations Committee markup of fiscal 2026 Military Construction-VA appropriations bill.

Wednesday, June 11 | 10 a.m. House Appropriations Committee markup of fiscal 2026 Agriculture-FDA appropriations legislation.

Thursday, June 12 | 9 a.m. House Appropriations Committee markup of fiscal 2026 Defense and Homeland Security appropriations bills.

Tuesday, June 10 | 10 a.m. House Transportation-HUD Appropriations Subcommittee budget hearing for the Department of Housing and Urban Development, with HUD Secretary Scott Turner.

Tuesday, June 10 | 10 a.m. House Energy and Commerce Committee’s Energy Subcommittee hearing on the Energy Department’s fiscal 2026 budget.

Tuesday, June 10 | 10 a.m. Senate Labor-HHS-Education Appropriations Subcommittee hearing on the president's fiscal 2026 budget request for the NIH.

Tuesday, June 10 | 2 p.m. House Administration Elections Subcommittee hearing on “Maintaining Election Operations in the Face of Natural Disasters.”

More Details

Wednesday, June 11 | 10 a.m. House Agriculture Committee hearing to receive testimony from Agriculture Secretary Brooke Rollins.

Wednesday, June 11 | 10 a.m. House Ways and Means Committee hearing with Treasury Secretary Scott Bessent.

Wednesday, June 11 | 10 a.m. Senate Energy and Natural Resources Committee hearing to examine the president’s fiscal 2026 budget request for the Interior Department.

Wednesday, June 11 | 10 a.m. Senate Energy-Water Development Appropriations Subcommittee hearing on the president's fiscal 2026 budget request for the Army Corps of Engineers and Bureau of Reclamation.