House and Senate Action

The House and Senate are both in session, kicking off a week that will once again be dominated by continued GOP negotiations over how to pay for President Trump’s sweeping domestic policy priorities. While several House committees recently advanced legislation that would address key portions of the Trump agenda, the panels that are tasked with identifying some of the most controversial spending cuts that would be used to offset an extension of the 2017 Tax Cuts and Jobs Act have postponed their markups. Looking ahead, Republicans are far from unified on a final strategy for advancing the president’s mega-bill via the filibuster-proof “budget reconciliation” process.

Despite the focus on reconciliation, both chambers are moving forward with other legislative business this week. Earlier today, the House approved several non controversial measures listed on the suspension calendar (requires 2/3rd majority for passage), the vast majority of which addressed a diverse slate of issues pertaining to foreign affairs.

Later in the week, the House will consider two more partisan measures, including a bill (H.R. 276) that would officially rename the “Gulf of Mexico” as the “Gulf of America.” The full House agenda can be accessed here.

Across Capitol Hill, the Senate will consider a resolution (H.J. Res. 61) that would overturn an Environmental Protection Agency (EPA) rule issued under the Biden administration requiring tire manufacturers to meet emissions standards for hazardous air pollutants. The House approved the measure last week. The Senate’s daily schedule is available here.

President Trump Releases “Skinny Budget” Proposal

On May 2, President Trump unveiled a streamlined version of his administration’s budget for fiscal year 2026, calling for approximately $163 billion in discretionary funding cuts to federal education, health, housing, and labor programs (a 22 percent reduction). At the same time, the budget proposal calls for boosting spending on defense and border security. It should be noted that congressional appropriators often eschew much of any given administration’s budget request. For his part, House Appropriations Committee Chairman Tom Cole (R-OK) has not yet committed to adhering to President Trump’s proposed ceiling for domestic spending programs.

With regard to the U.S. Department of Health and Human Services, the administration’s budget calls for a 26 percent cut in discretionary funding, including the elimination of the Low-Income Home Energy Assistance Program (LIHEAP), Community Services Block Grants (CSBG), Preschool Development Block Grants, teen pregnancy prevention programming, and more. The proposal also calls for deep cuts aligned with the ongoing reorganization and consolidations within the agency, including reductions to domestic HIV programs, multiple Maternal and Child Health programs, the elimination of multiple Health Workforce Programs, and a nearly 50 percent ($3.6 billion) cut from the Centers for Disease Control. The proposal seeks a nearly $18 billion reduction from the National Institutes for Health (NIH), as well as a $675 million cut from the Centers for Medicaid and Medicare Services (CMS) through the elimination of health equity-focused activities and Inflation Reduction Act-related outreach.

President Trump’s proposed budget also would cut funding for the Department of Housing and Urban Development by $32.9 billion, or more than 40 percent, from current levels. Moreover, the administration would reduce rental assistance programs by $26.7 billion while imposing a new two-year cap on rental aid for “able-bodied adults.” In addition, the budget calls for the elimination of the Community Development Block Grant and the HOME program, while significantly cutting Homelessness Assistance Grants. Further cuts to food banks would come from the elimination of the Commodity Supplemental Food Program, which supports food assistance for seniors. The administration proposes to replace this program with so-called “Make America Healthy Again” food boxes. 

Finally, the budget proposal takes aim at $646 million in Federal Emergency Management Agency (FEMA) Grant Programs, such the National Domestic Preparedness Consortium and FEMA’s Preparedness Grants Portfolio. Notably, mandatory spending programs – including Medicaid, the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and the Social Services Block Grant (SSBG) – are not addressed in the president’s proposal.

 Some Reconciliation Markups Delayed over Safety Net Concerns

Last week, House Republicans successfully advanced several pieces of their massive budget reconciliation package out of key committees, including the House Education and Workforce Committee. The panel approved legislation that avoids cuts to critical child nutrition programs – such as school meals – but would reduce spending on the Higher Education Act and student loan repayment plans by $351 billion over 10 years. For its part, the House Judiciary Committee approved an immigration measure that, among other things, would raise fees on individuals seeking refuge in the United States while increasing spending on resources to detain and deport migrants. All told, the measure includes funding to support the removal of one million migrants annually.

In the Transportation and Infrastructure (T&I) Committee, Republicans advanced a partisan measure that would provide funding for the Trump administration’s border, national security, and aviation agenda. The bill also incorporates a range of spending cuts and fiscal reforms, including provisions that would rescind roughly $4 billion in spending that was previously approved by Congress (including funding for Neighborhood Access and Equity Grants, Environmental Review Implementation Funds, and Low-Carbon Transportation Materials Grants).

Notably, the T&I bill includes several provisions designed to shore up the Highway Trust Fund (HTF), which is the main source of funding for federal surface transportation programs. The legislation includes language that would assess an annual registration fee of $250 on electric vehicles (EVs) and $100 on hybrid vehicles. Taken together, and if ultimately approved by Congress, the fees are expected to generate more than $38 billion over ten years, the vast majority of which would be spent on highway and transit programs.

Despite decisive action in the aforementioned committees, internal disagreements over how to achieve some of the most controversial cuts have forced GOP leadership to delay several key markups until the week of May 12. This includes the House Energy & Commerce Committee, which oversees the Medicaid program. All told, the committee must achieve a spending cut of $880 billion over 10 years. For its part, the House Agriculture Committee – which has jurisdiction over the Supplemental Nutrition Assistance Program (SNAP) – is tasked with cutting $230 billion in mandatory spending over 10 years. The panel’s markup was delayed as several Republican members of the committee have continued to raise concerns over potential spending cuts to SNAP.

Finally, the House Ways and Means Committee is scheduled to hold its markup next week, despite significant pressure from Speaker Mike Johnson (R-LA) to move more quickly. Along with extending expiring tax cuts, committee Republicans are looking to achieve several of President Trump’s tax priorities, including cutting taxes for Americans making less than $200,000 and eliminating taxes on tips, overtime, and Social Security payments for four years. Further complicating the path forward, there continues to be disagreement among lawmakers over how to approach the cap on the State and Local Tax Deduction.

 Senate Panel to Hold Hearing on Fix Our Forests Act

On Tuesday afternoon, the Senate Agriculture Committee will hold a legislative hearing on the Fix Our Forests Act (FOFA; S. 1462), a comprehensive, bipartisan proposal aimed at addressing the nation’s growing wildfire crisis. The bill was recently introduced by Senators Alex Padilla (D-CA), John Curtis (R-UT), John Hickenlooper (D-CO), and Tim Sheehy (R-MT) and serves as the Senate companion to the House-passed version (H.R. 471). It reflects months of bipartisan negotiations and growing national consensus regarding the need to accelerate hazardous fuels reduction projects, streamline environmental review processes, and strengthen federal, state, tribal, and local coordination in forest and rangeland management. The Forest Service’s acting associate chief, Chris French, is scheduled to testify for the agency.

Among other things, the bill would formally define a “special district” for purposes of forest management programs and projects. It would also expand the Good Neighbor Authority to include special districts as eligible partners.

It should be noted that the panel held a hearing earlier this year on the House bill, which featured testimony from local government and tribal officials, wildfire and forestry experts, and insurance industry representatives, all of whom emphasized the urgent need for comprehensive federal action to mitigate wildfire risk and increase community resilience. With bipartisan support in both chambers and mounting public attention on the escalating wildfire threat, FOFA is emerging as a leading vehicle for forest management and wildfire mitigation reform. However, differences between the House and Senate versions, particularly on litigation reform and environmental safeguards, will need to be resolved before a unified package can advance.

A livestream of the hearing will be available here, beginning at 3pm ET.

 Senate Lawmakers Introduce Bipartisan Bill to Extend and Expand Public Lands Maintenance Program

Last week, Senators Steve Daines (R-MT) and Angus King (I-ME) introduced bipartisan legislation – the America the Beautiful Act (S. 1547) – that would reauthorize and expand the Legacy Restoration Fund (LRF), a key program created under the 2020 Great American Outdoors Act (GAOA). The bill would increase annual funding for the LRF from $1.9 billion to $2 billion and extend the program through 2033. The fund, which is set to expire in September, plays a critical role in addressing the mounting backlog of deferred maintenance across federal public lands. These funds support essential repairs and upgrades to roads, trails, bridges, visitor facilities, and employee housing in national parks, forests, wildlife refuges, and other public lands. In addition, S. 1547 would require federal land management agencies to maintain a two-year rolling list of deferred maintenance projects, allowing them to initiate projects for the upcoming year even under a continuing resolution. The legislation also would ensure that all U.S. Fish and Wildlife Service lands are eligible for funding, expanding the program’s reach to additional conservation areas.

The bill’s introduction comes amid broader partisan debates over public lands policy, including proposals under the House GOP’s budget reconciliation plan that could authorize the sale of certain federal lands to reduce the deficit. While the America the Beautiful Act has garnered bipartisan support, it could face opposition from Senate Energy and Natural Resources Committee Chairman Mike Lee (R-UT), who was a vocal critic of the original GAOA. Nonetheless, the measure is likely to resonate with lawmakers from both parties who have championed outdoor recreation, economic development, and conservation efforts in their states.

 Senate Panel Holds Hearing on Insurance and the Role of Mitigation Policies

Last week, the Senate Banking Committee held a hearing to assess growing instability in the property insurance market and explore the role of mitigation in reducing risk. Chairman Tim Scott (R-SC) opened the hearing by pointing to the increasing frequency of natural disasters as a major stressor on the insurance system. Drawing from his experience in the insurance industry, Scott argued that markets must be allowed to operate on actuarial soundness, and he criticized state regulatory frameworks – particularly in California – for limiting the use of catastrophe models and reinsurance costs in rate-setting. He warned that these restrictions are contributing to unsustainable insurer losses and market withdrawals.

For her part, Ranking Member Elizabeth Warren (D-MA) focused on the impact of rising insurance costs on housing affordability. She criticized recent federal actions – such as funding freezes, cuts to disaster mitigation programs, and tariffs on construction materials – as contributing to the affordability crisis, particularly in frontline communities. She also emphasized the need for stronger consumer protections and mitigation investments to support at-risk homeowners.

Lake County Supervisor Jessica Pyska, invited to testify by committee leaders, shared the on-the-ground impacts of market volatility in California. Recounting the loss of her own home to a wildfire, she described how nearly 70 percent of Lake County’s land has burned since 2015, displacing residents and straining access to insurance. Pyska warned that rising premiums are forcing residents onto the state’s FAIR Plan or leaving them uninsured altogether, and she urged Congress to invest in proactive mitigation and enact reforms that make coverage more accessible. She also highlighted an innovative cluster home hardening pilot program in Lake County’s Kelseyville Riviera community as a model for reducing community-wide risk. Other witnesses echoed the need for stronger alignment between federal policy and risk-reduction strategies. While panelists differed on the root causes of insurance market instability, there was broad agreement that without federal leadership and investment in resilience, communities across the country will remain increasingly vulnerable to future disasters.

An archived webcast of the hearing can be viewed here.

Relevant Hearings & Markups

Monday, May 5 | 3 p.m. House Veterans’ Affairs Technology Modernization Subcommittee hearing on “Improving Access to External VA Care through Enhanced Scheduling Technology.”

Tuesday, May 6 | 10 a.m. House Appropriations Financial Services Subcommittee oversight hearing of the Treasury Department, with testimony from Treasury Secretary Scott Bessent.

Tuesday, May 6 | 10 a.m. House Appropriations Homeland Security Subcommittee oversight hearing of the Department of Homeland Security, with Homeland Security Secretary Kristi Noem testifying.

Tuesday, May 6 | 10:15 a.m. House Education and Workforce Workforce Protection Subcommittee hearing on “FECA Reform and Oversight: Prioritizing Workers, Protecting Taxpayer Dollars.”

Tuesday, May 6 | 3:30 p.m. House Armed Services Cyber, Information Technologies and Innovation Subcommittee hearing on “Science, Technology and Innovation Posture.”

Wednesday, May 7 | 10 a.m. House Oversight Health Care and Financial Services Subcommittee hearing on “Examining the Growth of the Welfare State, Part II.”