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Federal Update: Week of July 27, 2026

By Morgan Leskody posted 3 hours ago

  

The Week Ahead 7.27 – 7.31

  • The Senate is in session.
  • The Senate returns today to consider nominations.
  • The House will return on August 31, 2026. 

Congress

FY27 Appropriations: Last week, the House passed a stopgap CR measure in a 220-205 vote to fund the government through December 4, 2026. Senate Majority Leader John Thune (R-SD) has reportedly told appropriators that he wants to finalize a Senate version of the CR this week. Unlike the House measure, the Senate CR is expected to include most, but not all, of the White House’s requested anomalies.

OMB Proposed Rule: Democratic appropriators, including Sens. Patty Murray (D-WA), Brian Schatz (D-HI), and Tammy Baldwin (D-WI), are calling for the inclusion of language in a short-term CR that would delay the implementation of the OMB proposed rule. Senate Appropriations Committee Chair Susan Collins (R-ME) has expressed support for delaying the guidance but has indicated she prefers to include language into a full-year appropriations bill. For the rule to take effect on October 1, 2026, it must publish a final rule by September 1 and respond to some of the substantive comments. As a reminder, the proposed rule would rewrite the Uniform Guidance, codifying agency authority to terminate discretionary federal awards mid-stream when they no longer align with administration priorities and layering on new conditions to grants and other federal financial assistance.

Reconciliation 3.0: House Republicans adopted the budget resolution in a 216-214 vote last week, unlocking the process for passing the $95 billion Reconciliation 3.0 measure. However, both Senate Majority Leader John Thune (R-SD) and Senate Budget Committee Chair Ron Johnson (R-WI) have indicated that the House’s resolution currently lacks the votes to win approval in the Senate.

NDAA: While the House passed its version of the National Defense Authorization Act (NDAA) in a 216-212 vote on July 22, Senate lawmakers have yet to begin floor consideration on its version of NDAA after a July 14 cloture vote on the motion to proceed failed 50-46. Senate Democrats voted against beginning debate, citing concerns with the continuing Iran war and the bill’s topline spending level. House leadership attached the SAVE America Act to the NDAA through the rule governing floor consideration. The SAVE America Act requires proof of citizenship and voter ID mandates in federal elections, which local election officials would bear the burden of implementing. Senate leaders have indicated that the SAVE America Act lacks the votes to survive, but it is a high priority of the administration and some in Congress. 

Nominees: Senate Republicans are working to clear the queue of pending Trump administration nominees. This week, Senators will start with floor consideration of former Securities and Exchange Commission (SEC) Chair Jay Clayton to be Director of national intelligence before moving onto an “en bloc” package of 74 nominees, which include, Hal Duncan for Deputy Director of OMB, Cameron Hamilton for Administrator of FEMA, and David Cummins for Administrator of TSA.

FTA Announces Buses/Bus Facilities and Low-No NOFO: The Federal Transit Administration (FTA) announced $21 million for the FY 2026 Grants for Buses and Bus Facilities Program and $589 million for the FY 2026 Low or No Emission Grant Program. Applications are due by September 21, 2026.

House Committee Advances Ratepayer Protection Act: On Tuesday, July 21, the House Energy and Commerce Committee advanced in a 52-0 vote the amended Ratepayer Protection Act (H.R.9340). The legislation would require states to consider adopting a federal standard directing data centers to pay the full cost of new generation and transmission upgrades needed to serve them. Committee leaders passed an amendment that narrows the bill to apply specifically to data centers.

Sen. Graham Funeral: Sen. Lindsey Graham’s (R-SC) funeral in Washington, D.C. will be held on Tuesday, July 28.

Trump Administration:

Sec. Duffy Releases Priorities for Surface Transportation Reauthorization: On July 22, Transportation Secretary Sean Duffy sent a letter to the Senate Committees on Environment and Public Works; Commerce, Science, and Transportation; and Banking, Housing and Urban Affairs detailing the Department of Transportation’s (DOT) priorities for Surface Transportation Reauthorization. Secretary Duffy urged Congress to continue working to pass a long-term surface transportation bill but noted that if a short-term extension becomes necessary, DOT recommends several policy changes, including eliminating the Mass Transit Account within the Highway Trust Fund, consolidating several Infrastructure Investment and Jobs Act (IIJA) programs, and allowing several IIJA programs to expire, such as the SMART and National Culvert Removal, Replacement, and Restoration grant programs.

FTA Launches Dashboard for Public Transit Systems: On July 23, the Federal Transit Administration (FTA) launched its new online dashboard, called Transit Moves America. The dashboard publishes information on transit systems’ safety and security, accessibility, and system reliability.

Grants:

COPS Office Releases Law Enforcement Grants: The Office of Community Oriented Policing Services (COPS Office) released $25 million in new grant opportunities to support law enforcement agencies. The COPS Office is hosting a webinar to discuss its open grant opportunities on Tuesday, July 28 at 1:00 PM ET.

Drone Infrastructure Inspection Grants (DIIG) to Open: The Department of Transportation (DOT) released a forecasted grant opportunity for the DIIG Program to provide grants to state, city, and county governments and metropolitan planning organizations to facilitate the use of small Unmanned Aircraft Systems (UAS), referred to as drones, in critical infrastructure inspection. Eligible uses of grant funds include purchasing, leasing, or enhancing drone systems; contracting for services when internal expertise is lacking in the government entities; and supporting program management for these systems and operations. $9 million in funding will be available.

Bus/Bus Facilities & Low-No Grants to Open: The Notice of Funding Opportunity (NOFO) for the FY 2026 Bus/Bus Facilities and Low to No Emission grants will be published in the Federal Register on Monday, July 27. $610 million in funding will be available, and applications will be due September 21, 2026.

Hearings and Markups:

  • Natural Resources: The Senate Energy and Natural Resources Committee will hold a markup of 39 measures, including legislation to reauthorize a water infrastructure program, on Wednesday.
  • DOJ: The Senate Judiciary Committee will markup the nomination of Todd Blanche to be the attorney general on Thursday.
  • DOL: The Senate HELP Committee will vote on the nomination of Keith Sonderling to be secretary of labor on Thursday.
  • Higher Education: The Senate HELP Committee will consider several higher education-related bills, including the College Transparency Act (S.2511) and a bill prohibiting the transfer of certain offices and functions of the Department of Education to other Federal agencies (S.5046), on Thursday.

The Week’s News:

  • Some Senate Republicans call for canceling August recess to debate the SAVE America Act (The Hill)
  • Rep. Jeffries launches Democrats’ midterms affordability-focused campaign (NYT)
  • Lawmakers introduce legislation to regulate AI (POLITICO)
  • House pivots to midterms as members depart for recess (Semafor)
  • President Trump announces new tariffs on dozens of trading partners (POLITICO)
  • Senate Republicans defeat a motion to end Iran war (The Hill)


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