Blogs

Federal Update: Week of July 20, 2026

By Morgan Leskody posted 3 hours ago

  

Congress

  • Congress is in session.
    • The Senate returns today to consider nominations.
    • The House returns today to consider the NDAA, a short-term CR, and the third reconciliation package. 
  • FY27 Appropriations: House Republicans released a stopgap CR measure on Friday, July 17, to fund the government through December 4, 2026. The House Rules Committee is scheduled to consider the measure on Monday, July 20. The bill would temporarily extend current FY 2026 funding levels while lawmakers continue negotiating FY 2027 appropriations bills. Senate Republicans are reportedly discussing the measure with the White House.
  • Reconciliation 3.0: House Republicans are expected to hold a floor vote on the $95 billion reconciliation package on Monday, July 20 that includes funding for the Iran war, farm aid, and grants for election security. If approved by the House, the measure would move to the Senate for consideration. Senate Majority Leader John Thune (R-SD), as well as Sens. Ron Johnson (R-WI) and Bill Cassidy (R-LA) have criticized the lack of budgetary offsets to pay for the package.
  • NDAA: The House Rules Committee will meet on Monday, July 20, to consider its version of the NDAA. House Armed Services Ranking Member Adam Smith (D-WA) said he is likely to oppose the $1.15 trillion measure on the floor. Once it passes, the NDAA is expected to be merged with the SAVE America Act, Republicans’ voter ID bill. Meanwhile, the Senate failed to advance its NDAA in a procedural vote last week and will move straight to conference negotiations with the House.
  • House E&C To Hold Mark-up of Data Center Legislation: The House Energy & Commerce (E&C) is scheduled to hold a mark-up of the Ratepayer Protection Act (H.R.9340) on Monday, July 20. The legislation would require states to consider adopting a federal standard directing large electricity customers to pay the full cost of new generation and transmission upgrades. Sen. Jon Husted (R-OH) introduced companion legislation (S.5028) in the Senate on July 16.
  • House Judiciary to Consider Immigration Bill: The House Judiciary Committee is planning a Tuesday, July 21 markup of Republicans’ immigration bill, entitled the Permanent Trump Secure Border Act (H.R.9199). The bill would limit asylum eligibility, restrict immigration parole, and change rules for unaccompanied children and family detention.
  • Nominees: The Senate Homeland Security and Governmental Affairs Committee will hold a business meeting to vote on moving forward several nominees, including Hal Duncan for Deputy Director of OMB, Cameron Hamilton for Administrator of FEMA, and David Cummins for Administrator of TSA.
  • HUD Issues Notice of Proposed Information Collection: The Department of Housing and Urban Development (HUD) has proposed new grant award conditions that would require recipients to submit additional documentation for federally funded expenditures. Under the proposal, recipients would be required to provide financial records, such as invoices showing vendor or subrecipient names and accounting system payment registers, to substantiate payments made with federal funds, including payments made by subrecipients and contractors. Stakeholders have expressed concern that the proposed information collection could impose significant administrative burdens on grant recipients. Comments are due by September 8, 2026.
  • 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.

Trump Administration:

  • President Trump Addresses Nation: On Thursday July 16, President Trump delivered a national address focused on election security, alleging Chinese interference in the 2020 election and urging Congress pass the SAVE America Act (H.R.7296). During the address, President Trump claimed federal agencies uncovered evidence of Chinese election interference and alleged that “members of the deep state” worked to downplay the extent of China’s interference. President Trump also claimed that the DHS identified approximately 278,000 non-citizens in state voter rolls using data from the SAVE (Systematic Alien Verification for Entitlements) system. The White House subsequently released the declassified documents related to the investigation. 
  • DHS Finalizes Public Charge Rule: On July 16, the Department of Homeland Security (DHS) issued a final rule rescinding the Biden administration’s 2022 regulation governing public charge determinations. The final rule allows DHS to take a case-by-case assessment of whether an individual applying for a visa, admission, or adjustment of status is likely to become a public charge. Under the Immigration and Nationality Act (INA), individuals deemed likely to become a public charge, defined as those considered likely to become primarily dependent on government assistance, may be found inadmissible to the United States.
  • 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.

Hearings and Markups:

    • Judiciary: The House Judiciary Committee will hold a markup of the Permanent Trump Secure Border Act on Tuesday.
    • Education: The House Education and Workforce Committee will hold a markup of 10 bills that would move Education Department programs to other federal agencies on Tuesday.
    • Reconciliation 3.0: The Senate Appropriations Committee will hold a hearing entitled, “A Review of the President’s Supplemental Funding Request of June 24, 2026,” on Tuesday.
    • Housing: The House Financial Services Housing and Insurance Subcommittee will hold a hearing on oversight of the federal home loan bank system on Tuesday.
    • Nominees: The Senate Homeland Security and Governmental Affairs Committee will hold a nomination hearing for several nominees, including Hal Duncan for Deputy Director of OMB, Cameron Hamilton for Administrator of FEMA, and David Cummins for Administrator of TSA, on Wednesday.
    • FERC: FERC Chair Laura Swett will testify before the Senate Energy and Natural Resources Committee on Wednesday.
    • Forest Service: Chief Tom Schultz of the U.S. Forest Service will testify before the House Agriculture Forestry and Horticulture Subcommittee on Wednesday.
    • Public Lands: The House Natural Resources Committee will hold a markup on several public lands-related bills on Wednesday.
    • Disaster Communications: The Senate Commerce, Science, and Transportation Committee will hold a markup of several bills, including the Disaster Communications Coordination and Preparedness Act (S.4691) on Wednesday.
    • TSA: The Senate Commerce, Science, and Transportation Committee will hold a nomination hearing for David Cummins to be Administrator of TSA on Wednesday

Top stories:

  • Troy Jackson appears poised to secure the Democratic nomination for Maine’s Senate race (NYT)
  • Republicans consider attaching the SAVE America Act to a CR (The Hill)
  • Andy Burnham will become Britain’s new prime minister (POLITICO)
  • Sen. King (I-ME) indicated lawmakers have made “some progress” on a permitting deal (E&E)
  • DHS issues final rule shortening duration of visas for foreign students, cultural exchange visitors, and journalists (Reuters)
  • New York enacts nation’s first statewide moratorium on data centers (NYT)

 


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