The House of Representatives and Senate reconvened in Washington following the Memorial Day recess amid a fluid legislative landscape.  Senate Republicans were able to finally able to start and finish work on President Trump’s key legislative priority, budget reconciliation "2.0" legislation to provide tens of billions of dollars to CBP and ICE, though weeks later than they planned. 

Trump created new headaches for Republicans through a controversial nomination for the Director of National Intelligence that has roiled an emerging bipartisan framework on renewal of FISA authorities deemed critical to national security, where a long-term renewal has proved elusive for several months.  The House of Representatives also dealt Trump a blow, as a War Powers Act resolution to end the war in Iran passed the chamber for the first time, with a handful of Republicans joining a united bloc of Democrats.

House Appropriations Committee Advances FY27 Bills, Starts Floor Action

The House Appropriations Committee continued to make significant progress on the FY27 Appropriations bills, this week approving the spending bills on Interior-Environment and Transportation-HUD.  So far, the panel has approved 9 of the 12 annual spending bills.  Two additional bills, related to funding for the Department of Homeland Security and the Labor, Health and Human Services, and Education departments, were approved in subcommittee on Friday.  Further, the House of Representatives passed the Agriculture Appropriations bill before leaving town on Thursday.  These developments set the stage for additional spending bills to be debated in the House of Representatives in the coming weeks, as House Republicans work to showcase accomplishments on funding and policy in advance of the 2026 midterm elections.

On the Senate side, the Appropriations Committee delayed planned markups on three bills – Agriculture/FDA; Commerce, Justice, Science; and Legislative Branch spending measures, as Republicans and Democrats have not yet agreed on topline funding levels for the FY27 bills.  It appears these bills, as well as potentially the FY27 Military Construction-VA, Interior-Environment, and Financial Services-General Government spending measures, will be marked up next week.  Panel Chair Susan Collins (R-ME) has said both sides have engaged in negotiations that can allow at least some of the subcommittee bills to advance, but Democrats are not yet on board.  Ongoing uncertainty about the Trump Administration’s plans for a compensation fund for “victims of government weaponization,” however, remains a potential hurdle as Democrats seek to bar funding to it.

Reconciliation 2.0 Package Approved by the Senate, With House Consideration on Deck

Overnight Friday, the Senate advanced President Trump’s key legislative priority, budget reconciliation 2.0 legislation to provide $69 billion to CBP and ICE for their operations over the next three years, weeks later than they planned to do so.  The funding is being advanced under budget reconciliation, which entails special procedures that prohibit the measure from being filibustered and can be passed with a simple majority, after an impasse on funding the Customs and Border Patrol and Immigrations and Customs Enforcement in the FY26 Department of Homeland Security Appropriations bill.  Although Senate Republicans had been sufficiently unified in taking this approach, Trump’s announcement of a compensation fund for “victims of government weaponization” caused sufficient alarm among Republicans to force the measure to be delayed until this week.  As part of the Senate’s “vote-a-rama,” under which an unlimited number of amendments can be considered for a vote, efforts to prohibit funding for the weaponization fund narrowly failed by a vote of 50-49, as three Republicans who are facing tight re-election races in November – Sen. John Husted (R-OH), Sen. Dan Sullivan (R-AK), and Collins crossed the aisle to join all Democrats.  These unusual departures are evidence of the concern that Republicans have about the repercussions they will face on the campaign trail, caught between Trump’s ongoing comments in support of the fund and early but broad opposition to it in public opinion surveys.

The House of Representatives is expecting to take up and pass the Senate-passed reconciliation measure next week.

OMB Proposes Significant Changes to Competitive Federal Grants Government-wide

On May 29, the Office of Management and Budget (OMB) issued a proposed rule to revise government-wide requirements for federal financial assistance, including grants and cooperative agreements.  OMB describes the proposed rule as intended to “improve transparency, accountability, and oversight” for federal awards, clarify the regulatory status of 2 CFR, and reduce recipient burden.  If adopted, the proposed rule would make significant changes to the way that federal grants are evaluated, awarded, and managed. 

WSW Partner and Grants Director Laura Lay has evaluated the proposal and compiled a memo explaining the changes being advanced, which could have significant implications for organizations seeking federal funding across the full breadth of the federal government.  Laura’s memo can be accessed at this link.  We stand ready to answer questions on the proposal to understand its implications and how it is being received.  The deadline for comments is July 13, 2026.

Key Dates

Supply Chain Federation CEO Tim Jemal hit Capitol Hill recently, meeting with key Senators and Members of Congress, pressing successfully for passage of the Combating Organized Retail Crime Act (CORCA) and sharing priorities impacting America's supply chain with the House T&I Committee in advance of the markup on the BUILD America 250 Act.

The Supply Chain Federation is a leading national advocacy organization working to strengthen America’s supply chain by uniting business and labor to protect jobs, invest in domestic infrastructure, and safeguard the supply chain and economy from global instability.

Shonia Lyles joined WSW in 2022 and brings more than 20 years of experience in accounting, finance, operations, and office management. She supports the firm’s day-to-day operations with a strong analytical approach and a focus on building efficient processes that drive growth and results. Shonia is an avid sports fan, rooting for the New York Yankees and most recently, the New York Knicks in their NBA Finals run.