FY 27 Appropriations: The Senate Appropriations Committee did not conduct markups this week as Senate Appropriations Committee Chair Susan Collins (R-ME) and Vice Chair Patty Murray (D-WA) remain divided over how to split discretionary funding between defense and non-defense priorities. Next week, the House Appropriations Committee is scheduled to mark-up in full committee the Defense bill and the Energy & Water and National Security/Dept. of State appropriations bills will be ready for floor consideration.
Reconciliation 3.0: Although House Republican leadership and committee chairs have reportedly spent weeks negotiating a third reconciliation package, several Senate Republicans have expressed skepticism that they would be able to secure the votes needed, especially so close to the midterm elections. During this week’s Senate Budget confirmation hearing for Hal Duncan, nominee for Deputy Director of OMB, Senate Budget Chairman Lindsey Graham asked, “if we can’t pass a supplemental through the appropriations process dealing with defense and other matters … do you believe a third reconciliation bill focusing on defense and fraud would be justified?” Duncan responded “Yes, sir. Absolutely.”
Surface Transportation Reauthorization: Senate Environment and Public Works (EPW) Chair Shelley Moore Capito (R-WV) indicated Tuesday that a short-term extension for the surface transportation bill, set to expire September 30, 2026, is under consideration. Chair Capito said that she and EPW Ranking Member Sheldon Whitehouse (D-RI) have not yet solidified a deal on the bill. Senate Commerce Chair Ted Cruz (R-TX) reported last week that the Commerce Committee will wait for EPW to advance the bill before proceeding.
Housing Package: The House and Senate reached a final agreement on an amended 21st Century ROAD to Housing Act on Tuesday after House Financial Services Committee Chair French Hill (R-AR) agreed to a reauthorization of the Community Development Block Grant Disaster Recovery (CDBG-DR) program with a three-year sunset clause. The updated housing package retains all provisions from the ROAD to Housing Act passed by the Senate in March, incorporates all bipartisan housing provisions included in the House-passed bill, includes nine of the 11 House community banking bills, and adds language that would prohibit large institutional investors from purchasing single-family homes. The Senate voted 87-8 on a motion to proceed on the amended 21st Century ROAD to Housing Act on Tuesday. A final Senate vote on the bill is expected early next week, with a House vote anticipated shortly thereafter.
FISA: President Trump urged the Senate Intelligence Committee to delay the nomination of former Securities and Exchange Commission (SEC) Chair Jay Clayton to serve as director of national intelligence (DNI). The president’s decision last week to nominate Clayton initially helped ease partisan tensions surrounding the appointment of Federal Housing Finance Agency (FHFA) Director Bill Pulte as acting DNI. If Clayton’s nomination does not advance and Pulte assumes the role as acting DNI, however, Democrats have insisted they will not support FISA reauthorization.
NDAA: The Senate Armed Services Committee released its National Defense Authorization Act (NDAA) for FY27 on Tuesday. The act includes an amendment from Sen. Angus King (I-ME) aimed at preventing further delays in the Pentagon’s processing of wind project permits.The House Rules Committee has a 5 pm deadline today for amendments to the House NDAA bill.
Trump Administration:
Nominations: During Hal Duncan’s nomination hearing to be Deputy Director at OMB, he said that the OMB proposed rule would give political appointees authority to review grant decisions and ensure federal funding does not support “divisive DEI ideologies, woke gender ideologies, illegal immigration.” At Cameron Hamilton’s confirmation hearing to be FEMA administrator, Hamilton faced questions from Democratic Senators regarding reporting that FEMA may be more likely to approve disaster aid requests from states with Republican governors. Hamilton emphasized that, if confirmed, his focus would be to ensure FEMA is “objective, is fair and reasonable, follows the law.”
OMB Proposed Rule: NACo, NLC, USCM, GFOA, ICMA, and IMLA held a webinar on the OMB proposed rule on Tuesday, June 17. The proposed rule affects every federal grant, cooperative agreement, and pass-through award by introducing new substantive policy requirements, modifying the termination framework, integrating federal grants administration with the Treasury Do Not Pay system, reclassifying 2 CFR Subtitle A from guidance to binding regulation, and revising cost principles, audit requirements, and pass-through entity responsibilities. Presenting organizations urged attendees to submit comments in opposition or thoughts about how to revise the proposal. Comments on the proposed rule are due July 13, 2026. All of these organizations have requested additional time to analyze and respond to the proposal arguing 45-days was not enough time.
HUD Releases RFI on Build America, Buy America Implementation: On Wednesday, June 16, the Department of Housing and Urban Development (HUD) released a Request for Information (RFI) seeking input about the availability of homebuilding materials for projects funded through HUD’s Federal Financial Assistance. The 2021 Build America, Buy America Act requires that construction materials and some other products used in federally funded infrastructure are produced in the United States. Comments are due by July 18, 2026.
Grants:
FEMA Publishes Emergency Management Grant: The Federal Emergency Management Agency (FEMA) announced $337 million in funding through the Emergency Management Performance grant program. This annual funding opportunity seeks to bolster state, local, tribal, and territorial government agencies’ emergency management operations.
The Week’s News:
Senate Republicans express concern about Trump’s Iran deal (The Hill)
