FY 27 Appropriations: Senate Appropriations Committee Chair Susan Collins reportedly expects continuing resolution (CR) text to be released today, with an initial vote anticipated Monday evening, though release of the text could slip into the weekend. As opposed to the House-passed measure, the Senate CR proposal is expected to incorporate some of the White House’s list of requests for special exceptions, referred to as "anomalies.” The Senate version may also include language to block portions of the Office of Management and Budget (OMB) proposed rule that would give political appointees authority to terminate federal grants. The Senate Appropriations Committee is also reportedly expected to post draft FY27 appropriations bills on the Senate Appropriations Committee website late next week, allowing congressionally directed spending (CDS) requests to be made public before senators return home for the August recess.
Reconciliation 3.0: Senate Majority Leader John Thune (R-SD) continues to assert that the House-passed Reconciliation 3.0 measure lacks the votes to advance in the Senate. White House officials reportedly met with Senate Republicans about the measure and discussed whether a separate measure would be needed to address the budgetary cuts, raising the debt ceiling, or other tax-and-spend policies that were not included in Reconciliation 3.0.
Surface Transportation Reauthorization: Senate Environment and Public Works Chair Shelley Moore Capito (R-WV) said Wednesday, July 29, that she aims to attach a surface transportation extension through December 11, 2026 to the short-term continuing resolution (CR). Chair Capito also indicated that extension text will be released soon and that the measure is likely to be a clean extension without significant policy changes.
Farm Bill: Senate Agriculture Chair John Boozman (R-AR) is expected to release updated farm bill text this weekend ahead of the Committee’s markup next Thursday, August 6. The new legislation could include a one-year delay in requiring states to pay for some Supplementary Nutrition Assistance Program (SNAP) benefits and language to permanently allow year-round sales of E15 fuel. Under H.R.1, states are currently scheduled to bear increased SNAP administrative costs beginning October 1, 2026.
Senate HELP Committee Advances Bills to Block Downsize of the Education Department: On July 30, the Senate Health, Education, Labor, and Pensions (HELP) Committee advanced in a 13-9 vote S.5046, a bipartisan bill that would prohibit the Education Department from transferring the Office of Special Education and Rehabilitative Services, as well as the offices of Elementary and Secondary Education, Postsecondary Education, and Indian Education to other federal agencies.
Senate Nominations: On Thursday, July 30, the Senate Health, Education, Labor, and Pensions (HELP) Committee advanced in a 12-11 vote Keith Sonderling’s nomination to serve as Secretary of the Department of Labor (DOL). Meanwhile, Senate consideration of Todd Blanche’s nomination to be Attorney General of the Department of Justice was postponed amid disputes related to changes to the Trump IRS settlement agreement. Senate Republicans still working through advancing an “en bloc” package of 74 nominations, including David Cummins for TSA administrator and Hal Duncan to be deputy director of OMB, before lawmakers leave in August.
Trump Administration:
Deputy FAA Administrator to Leave Agency: Deputy Federal Aviation Administration (FAA) Administrator Chris Rocheleau announced Thursday, July 30 that he is leaving the agency. FAA Administrator Bryan Bedford said he believes Chief Counsel Liam McKenna will step in as acting deputy administrator.
Interior Department Releases Final Colorado River Plan: On Friday, July 31, the Interior Department released its final plan for managing the Colorado River over the next decade. The plan, issued as a final environmental impact statement, states the Interior Department will issue smaller plans every two years for how the river will be operated. The Interior Department is also expected to release its first two-year operating plan for the river soon ahead of its mid-August deadline for setting next year’s river operations. State negotiators reportedly believe it will largely reflect the cuts in water use proposed by Arizona, California, and Nevada in May.
EPA Issues Permitting Guidance on Data Centers: The Environmental Protection Agency (EPA) issued guidance clarifying that the Clean Air Act (CAA) Acid Rain Program (ARP) does not apply to power generation facilities that are not connected to a public electricity grid. The guidance gives developers greater flexibility in where and how quickly they can build new power generation facilities that are not connected to a public electricity grid for data centers.
Grants:
DOE Issues RFP on Industrial Water Reuse: The National Alliance for Water Innovation (NAWI), a public-private partnership led by the U.S. Department of Energy, issued a Request for Proposals to accelerate the development and demonstration of onsite water-reuse systems that can reduce industrial water demands. Applications are due by September 15, 2026.
