FY 27 Appropriations: 

The House voted 217-209 on Wednesday, July 15, to pass the $47.32 billion National Security-State Department appropriations bill. However, House lawmakers have passed only three of the twelve appropriations bills on the floor: Agriculture, Military Construction-Veterans Affairs, and National Security-State Department. With August recess and midterm elections approaching, House Speaker Mike Johnson (R-LA) has indicated he plans to hold a House vote next week on a continuing resolution (CR). The CR is expected to fund the government through the November midterm elections. Senate appropriations negotiations remain stalled due to partisan disagreements about defense and nondefense topline spending.

Reconciliation 3.0: 

House Republicans advanced their roughly $95 billion draft budget resolution out of committee on Thursday, July 16, launching the process for a third budget reconciliation package to be sent to President Trump. The draft budget resolution does not include any instructions for budgetary offsets, a decision that has already drawn criticism from fiscal conservatives and could complicate passage. Senate Majority Leader John Thune (R-SD) also expressed skepticism that the measure could advance in the Senate. The House’s resolution includes instructions for four House committees:

Armed Services: $60 billion in new spending;

Intelligence: $13 billion in new spending;

Agriculture: $12 billion for farm assistance; and

Administration: $10 billion to incorporate parts of the SAVE America Act, including election grants to states and other efforts aimed at promoting stricter voter-ID laws. 

Surface Transportation Reauthorization: 

House Transportation Chair Sam Graves (R-MO) said a floor vote on Surface Transportation Reauthorization will not come until after the August recess. Rep. Graves also indicated that an extension will “probably” be needed. The House Ways & Means Committee, which has jurisdiction over revenue provisions like the Highway Trust Fund and electric vehicle user fees, has yet to release its portion of the bill.

WRDA: 

On Tuesday, July 14, the House Transportation and Infrastructure (T&I) Committee unanimously approved its Water Resources Development Act (WRDA) of 2026. The House bill authorizes 131 new project feasibility studies and 10 new water resources infrastructure projects. On Wednesday, July 15, the Senate Environment and Public Works (EPW) Committee advanced its WRDA bill unanimously, authorizing 61 project feasibility studies and 15 new water resources projects. The Senate bill also reauthorizes the Drinking Water State Revolving Fund (DWSRF) and Clean Water State Revolving Fund (CWSRF) programs.

House Committee Considers FEMA Reforms:

On Wednesday, July 15, the House Transportation and Infrastructure (T&I) Committee held a hearing to discuss FEMA reforms and the FEMA Act (H.R.4669), legislation to create a unified disaster application system and make FEMA an independent, cabinet-level agency. T&I Chair Sam Graves (R-MO) argued that bill, which the panel advanced in a 57-3 vote last year, aligns with some of the recommendations developed by the administration’s FEMA Review Council. Panel Democrats, meanwhile, raised concerns about staff cuts at FEMA and a report that suggested the administration has approved a higher share of disaster assistance requests from states led by Republican governors than from states with Democratic governors.

House Committee Approves Bills to Dismantle Education Department: 

On Wednesday, July 15, the House Education & Workforce Committee advanced 10 bills that would move federal education programs from the Education Department to agencies across the federal government. Some panel Democrats argued that the bills would make it more difficult for state and local leaders to administer education programs.

NDAA: 

The Senate failed to advance its version of the National Defense Authorization Act (NDAA) in a 50-46 procedural vote on Tuesday, July 14. All Democrats, along with Senate Majority Leader John Thune (R-SD), voted against the motion after the White House informed Congress about the resumption of military activity in Iran.

Trump Administration:

FAA Extends Comment Period on Drone Flight Restriction Rule: 

The Federal Aviation Administration (FAA) extended its comment period for a proposed rule that would allow owners and operators of certain critical infrastructure facilities, including certain chemical manufacturing facilities, amusement parks, dams, water/wastewater facilities, correctional facilities, emergency services facilities, and electrical facilities, to apply for Unmanned Aircraft Flight Restriction (UAFRs) designations. Comments are now due August 5, 2026.

OMB Comment Letters: 

Comments on the OMB’s proposed revisions to 2 CFR Part 200 were due July 13, 2026. More than 495,000 comments were submitted, including filings from NACo, NLC, USCM, NSDA, NARC, AMPO, APTA, and NADO, as well as comments from Sen. Susan Collins (R-ME), 125 House Democrats, and 47 Senate Democrats.

The Week’s News:

Sen. King (I-ME) indicated lawmakers have made “some progress” on a permitting deal (E&E)

New York enacts nation’s first statewide moratorium on data centers (NYT)