Blank Rome Government Relations LLC (BRGR) provides the Weekly Washington Update to inform you of recent developments in Congress and Washington. For information on President Trump’s Executive Orders and other actions, please see our Executive Order Tracker.

Budget, Tax and Small Business

Sen. Johnson Threatens Forcing Senate Budget Vote Before Recess: Senate Budget Committee Chairman Ron Johnson (R-WI) is pushing for the Senate to vote on a Republican budget resolution before lawmakers leave for the August recess, warning that he will force a vote himself if Senate leadership does not act. Johnson argues that senators should at least vote on the measure and allow opponents to publicly explain their objections if it fails.  

The budget resolution would provide a pathway for advancing key Republican priorities, including defense spending, agriculture funding, election security grants, and potentially elements of President Trump's SAVE America Act voter ID agenda through the budget reconciliation process. However, some Republicans, including Sen. John Cornyn (R-TX), caution that holding a vote without enough support could expose divisions within the conference and weaken their position. Senate Majority Leader John Thune (R-SD) has so far focused on other priorities, including nominations, government funding legislation, and a Russia sanctions bill, while keeping discussions on the budget framework ongoing. (BGOV) 

Sen. Wyden Proposes New Taxes on Data Centers: Sen. Ron Wyden (D-OR), the top Democrat on the Senate Finance Committee, has proposed a new federal tax framework for data centers, arguing that the industry's rapid growth shows it no longer needs significant tax subsidies. His proposal would impose a low single-digit federal excise tax on data centers and eliminate their eligibility for certain tax incentives, including Opportunity Zone benefits and full expensing of capital investments used in their construction. Wyden says the goal is not to halt data-center or AI development, but to generate revenue that could help communities and workers affected by the expansion of AI and large-scale computing facilities, while also addressing concerns about their environmental and economic impacts. He plans to further refine the proposal, including defining what qualifies as a data center and determining how any new tax revenue would be used. (Politico)

Senate Punts on Crypto Bill, Plans Final Votes Before Recess: The Senate will leave for its August recess without advancing the landmark Clarity Act, a major cryptocurrency regulation bill, after Senate Majority Leader John Thune (R-SD) postponed a planned procedural vote until September due to Democratic opposition. Negotiators remain deadlocked over key issues, particularly measures to combat illicit finance and address concerns that public officials, including President Donald Trump, could personally profit from crypto-related activities. Sen. Thom Tillis (R-NC) and Sen. Ruben Gallego (D-AZ) have been working on a compromise, but the White House has not responded to their latest proposal. The delay reduces the time available to pass crypto legislation before the midterm election season slows congressional activity, while also avoiding a politically charged vote that could have put lawmakers on record ahead of an election expected to feature significant cryptocurrency industry spending. 

Today, Thune is planning to line up votes on a stopgap government funding bill (CR), a Russia sanctions package, dozens of nominations, and potentially Todd Blanche’s attorney general nomination, though support for Blanche remains uncertain. Republicans also plan an initial vote on a budget blueprint that is expected to fail, largely to satisfy conservative members demanding action before the break. (BGOV) 

Defense And National Security

Navy's "Golden Fleet" Set to Cost $275 Billion: President Trump’s proposed “Golden Fleet” of 15 nuclear-powered battleships would cost an estimated $275 billion, according to a new Congressional Budget Office (CBO) report. The first ship, the USS Defiant, is projected to cost $23.4 billion, while each additional vessel would cost about $18 billion. The CBO estimates the lead ship would take at least eight years to build, casting doubt on Trump’s goal of having the new class operational by 2028. Trump has promoted the vessels as the largest, fastest, and most powerful battleships ever built, and later shifted the design from gas-turbine propulsion to nuclear reactors.  

The proposal has drawn significant criticism from defense experts and congressional Democrats. Analysts argue the ships would be expensive, misaligned with the Navy’s modern strategy emphasizing distributed firepower, and vulnerable to cancellation before completion. The Navy’s long-standing struggles with shipbuilding delays and cost overruns add to concerns. Senate Budget Committee ranking member Jeff Merkley (D-OR) called the project a potential “military boondoggle,” while Senate Armed Services Committee ranking member Jack Reed (R-RI) argued that large battleships do not fit the future of warfare. The CBO also noted uncertainty over which shipyards would be capable of assembling the vessels, since the Navy has not identified a final builder. (The Hill) 

Transportation, Trade, And Commerce

Surface Transportation Bill Extension Added to Senate Continuing Resolution: The Senate’s proposed continuing resolution (CR) includes a short-term extension of federal surface transportation programs through December 11, 2026, preventing a lapse when authorities under the 2021 bipartisan infrastructure law expire on September 30. The extension comes as a broader five-year, $580 billion surface transportation reauthorization package covering highways, bridges, rail, and transit has stalled in the House and has not yet been introduced in the Senate. The CR is part of a bipartisan agreement aimed at avoiding a government shutdown, though House consideration remains uncertain. Democrats, led by Sen. Patty Murray (D-WA), unsuccessfully sought to include advance appropriations for transportation grant programs, arguing the funding is needed to preserve jobs and continue infrastructure projects, while House Transportation and Infrastructure Committee Chair Sam Graves (R-MO) has indicated support for a temporary extension through the end of the year. (BGOV) 

Energy And Environment

Appeals Court Blocks Trump Administration from Rescinding ‘Green Bank’ Funds: A federal appeals court has reversed an earlier decision and once again blocked the Trump administration’s effort to reclaim billions of dollars in clean energy financing that was awarded under the Biden administration’s Inflation Reduction Act (IRA). The full D.C. Circuit Court of Appeals reinstated a preliminary injunction preventing the Environmental Protection Agency (EPA) from clawing back roughly $20 billion in “green bank” funds that had already been distributed to organizations supporting projects aimed at reducing pollution and addressing climate change. The court indicated that the EPA’s action likely conflicted with the IRA because it appeared to be based primarily on a policy disagreement rather than legal authority.  

The dispute stems from EPA Administrator Lee Zeldin’s effort to terminate the program and recover the funds after President Trump returned to office. While the EPA is reviewing the latest ruling and considering its next steps, some judges expressed skepticism about whether an injunction remains necessary given that Republicans repealed portions of the program covering unobligated funds. Climate United Fund, one of the affected grantees, welcomed the ruling, arguing that the EPA had no legal basis for freezing or rescinding grants that had already been awarded and deposited. The organization said the program was intended to lower energy costs, create jobs, and improve public health, and pledged to continue legal efforts to fully restore access to the funds. (The Hill) 

Natural Resources and Native American Issues

Department of the Interior Proposes Targeted Updates to Arctic Exploratory Drilling Rule: The Department of the Interior has proposed targeted revisions to the 2016 Arctic Exploratory Drilling Rule governing oil and gas exploration on Alaska’s Arctic Outer Continental Shelf. Interior Secretary Doug Burgum stated that the changes are intended to support President Trump’s Energy Dominance agenda by reducing regulatory burdens, improving efficiency, and updating requirements to reflect technological advances and a decade of implementation experience, while maintaining federal safety and environmental oversight. The proposal aligns with Executive Order 14153, which promotes responsible development of Alaska’s natural resources to bolster U.S. energy and economic security.  

The proposed rule would modify requirements for blowout preventer monitoring, source control and containment equipment, relief rig capability, subsea isolation devices, oil spill response planning, and other operational standards. It would also eliminate the separate Integrated Operations Plan requirement and incorporate key planning information into the existing Exploration Plan process. Interior emphasizes that the rule does not authorize any specific drilling activity and that all future Arctic projects would remain subject to environmental reviews, permitting requirements, inspections, and public engagement processes. A 60-day public comment period will begin once the proposal is published in the Federal Register. (U.S, Department of the Interior Press Release) 

Sen. Boozman to Reconvene Farm Bill Markup After Failed Vote: Senate Agriculture Committee Chair John Boozman (R-AK) announced he will reconvene the committee in September to try again to advance the 2026 farm bill after it failed in an 10-11 vote, with Democrats united against the measure over a dispute involving Supplemental Nutrition Assistance Program (SNAP) funding. Democrats, led by Ranking Member Amy Klobuchar (D-MN), are demanding a two-year delay before states must begin sharing SNAP benefit costs, while Republicans offered only a one-year delay. The stalemate, combined with Republican absences, prevented the bill from moving forward despite bipartisan support for many of its agricultural provisions. Boozman argued that rural stakeholders will pressure lawmakers to reach a deal, while Klobuchar said negotiations remain possible and emphasized the need to resolve the SNAP issue. Both sides acknowledged that passing a farm bill before the midterm elections will be difficult without significant bipartisan cooperation. (Politico) 

For more information and assistance, contact C.J. Zane, Managing Principal of Blank Rome Government Relations LLC.