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Home - Blank Rome Government Relations LLC

Washington, D.C.

New York, NY

<a href="https://communications.blankrome.com/email_handler.aspx?sid=blankform&amp;redirect=https%3a%2f%2fwww.blankromegr.com%2f&amp;checksum=5A31E320" target="_blank" rel="noreferrer noopener">Blank Rome Government Relations LLC</a> (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 <a href="https://communications.blankrome.com/email_handler.aspx?sid=blankform&amp;redirect=https%3a%2f%2fblankromegr.com%2fpublications%2fpresident-donald-trump-executive-order-tracker&amp;checksum=14878F18" target="_blank" rel="noreferrer noopener">Executive Order Tracker</a>.

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Budget, Tax and Small Business

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Senate Takes First Procedural Step Toward Stopgap Funding Vote:&nbsp;Senate Majority Leader John Thune (R-SD) has taken the first formal procedural step toward passing a continuing resolution (CR) to keep the federal government funded beyond the September 30 deadline and avoid a shutdown. Thune filed cloture on the AGOA Extension Act, which will be used as the legislative vehicle for the stopgap funding measure. Senate leaders hope to pass the legislation next week before lawmakers leave Washington for the August recess. According to congressional appropriators, most of the package has already been negotiated, with only a handful of unresolved issues&nbsp;remaining.&nbsp;&nbsp;

One of the key outstanding disputes involves a proposed Office of Management and Budget rule that would overhaul federal grantmaking. Senate Appropriations Chair Susan Collins (R-ME) supports delaying the rule, while Senate Appropriations Vice Chair Patty Murray (D-WA)&nbsp;said Democrats are still pushing to include language blocking it in the CR. Congress is not expected to complete regular appropriations bills before the fiscal year ends, making a stopgap measure necessary. While the House has already passed its version of a continuing resolution, the Senate’s bill is expected to include modifications to funding levels and program provisions requested by the White House.&nbsp;(<a href="https://www.bgov.com/news/TJ08GRKGCTHZ" target="_blank" rel="noreferrer noopener">BGOV</a>)&nbsp;

Senate Finance Panel Advances Bipartisan Tax Admin Package:&nbsp;The Senate Finance Committee advanced a bipartisan tax administration package by a 26-1 vote, marking the committee’s first tax-related markup of the current Congress and moving a years-long effort led by Chairman Mike Crapo (R-ID) and Ranking Member Ron Wyden (D-OR) one step closer to enactment. The legislation aims to modernize IRS administration, improve taxpayer protections, reduce fraud, and streamline tax collection procedures. Key provisions would require businesses to&nbsp;submit&nbsp;employee wage and income information to the IRS earlier in the filing season and would grant the IRS authority to regulate paid tax return preparers. The package has attracted broad support from taxpayer advocates, tax professionals, and lawmakers who view it as a significant modernization of the tax system.&nbsp;&nbsp;

The markup also featured debate over several politically sensitive issues. Republicans defeated an amendment that would have blocked President Trump’s audit-immunity agreement, arguing it could jeopardize the broader bipartisan package. Sen. Elizabeth Warren (D-MA) cast the committee’s lone dissenting vote and urged lawmakers to revive the IRS Direct File program, while Sen. Catherine Cortez Masto (D-NV) unsuccessfully&nbsp;sought&nbsp;to restore a full deduction for gambling losses. Attention now shifts to the House Ways and Means Committee, where lawmakers have yet to take up the full package. Supporters, including National Taxpayer Advocate Erin Collins, argue that passage of the legislation could produce generational improvements in taxpayer service and IRS administration. (<a href="https://www.bgov.com/news/TIZUU8R24U9C" target="_blank" rel="noreferrer noopener">BGOV</a>)&nbsp;

Defense And National Security

Senate Advances Graham Bill to Put Harsher Sanctions on Russia, Iran:&nbsp;The Senate overwhelmingly voted 86-12 to advance the bipartisan&nbsp;late&nbsp;Senator Lindsey Graham (R-SC) sanctions bill, which would impose tougher sanctions on Russia and expand sanctions authorities targeting Iran. The legislation is designed to increase economic pressure on Moscow by targeting Russian officials, banks, oligarchs, the so-called “shadow fleet” used to evade existing sanctions, and countries that continue&nbsp;purchasing&nbsp;large amounts&nbsp;of Russian oil and gas. Supporters, including Sens. Richard Blumenthal (D-CT) and Roger Wicker (R-MS), argued that major buyers such as China and India are helping finance Russia’s war in Ukraine and that stronger economic measures are needed to undermine Vladimir Putin’s war effort. The vote came shortly after a visit by Ukrainian President Volodymyr Zelensky to Capitol Hill and follows the recent death of Sen. Lindsey Graham, one of Congress’s strongest advocates for Ukraine.&nbsp;&nbsp;

Despite broad bipartisan support, the bill faces criticism from some Democrats and a handful of Republicans who argue it grants President Trump excessive authority to impose tariffs and sanctions. Opponents, including Sen. Peter Welch (D-VT), warned that the language could effectively delegate significant congressional trade powers to the executive branch without sufficient limits. The measure also extends existing sanctions authorities targeting Iran’s financial and weapons sectors. While Senate passage appears&nbsp;likely, the&nbsp;bill must still clear additional votes and then pass the House, where some Democrats have expressed similar concerns about the legislation’s tariff provisions and the discretion it gives the president. (<a href="https://thehill.com/homenews/senate/5994964-senate-advances-russia-iran-sanctions/" target="_blank" rel="noreferrer noopener">The Hill</a>)&nbsp;

Transportation, Trade, And Commerce

Sen. Cramer Says Water Bill Is Possible Permitting Overhaul Vehicle:&nbsp;Sen. Kevin Cramer (R-ND) said Congress may use the bipartisan Water Resources Development Act of 2026 as a vehicle to advance long-sought permitting reform legislation, arguing that the window for a bipartisan deal is strongest before the end of the year and before a new Congress convenes. While transportation reauthorization legislation would normally be the&nbsp;most likely vehicle for permitting&nbsp;changes, Cramer noted that the surface transportation bill has stalled and permitting talks are&nbsp;actually further&nbsp;along. Other supporters, including Sen. Alan Armstrong (R-OK), warned that failure to act this year could significantly reduce the chances of reform, particularly if Democrats gain control of the House after the 2026 elections. The effort is being negotiated by a bipartisan group of senators and is viewed by advocates as a key opportunity to streamline infrastructure, energy, and other project approvals. (<a href="https://www.bgov.com/news/TIYL24VTTCZK" target="_blank" rel="noreferrer noopener">BGOV</a>)&nbsp;

Brightline Railroad Spends Big on DC Lobbying:&nbsp;Brightline, the privately owned passenger rail operator in Florida, is facing significant financial pressure and has been negotiating with bondholders to avoid defaulting on its debt while exploring options to sell the company or restructure its finances. At the same time, an affiliated company, BLH Capital and Management Services, sharply increased its Washington lobbying efforts, spending $840,000 on H.A. Cumber &amp; Co. during the latest reporting period to advocate on issues including federal grant programs and surface transportation reauthorization. Despite its debt challenges and ongoing safety concerns that have prompted federal investigations and more than $42 million in federal safety funding, Brightline has seen ridership gains, partly driven by World Cup travel, and continues pursuing its planned high-speed rail project connecting Las Vegas and Southern California. (<a href="https://www.bgov.com/news/TIWQGYKGIFRA" target="_blank" rel="noreferrer noopener">BGOV</a>)&nbsp;

Republicans Considering Energy Provisions for ‘Reconciliation 4.0’:&nbsp;Congressional Republicans are considering whether a fourth budget reconciliation package later this year—informally referred to as “Reconciliation 4.0”—could serve as a vehicle for&nbsp;additional&nbsp;energy policy priorities that were excluded from earlier legislation. Senate Budget Committee Chair Ron Johnson (R-WI) said he would be open to including measures aimed at reducing climate-related spending, while other Republicans view a future reconciliation bill as a final opportunity to advance fossil fuel production and revise Biden-era climate policies before the 2026 elections potentially change the political landscape. The discussion comes as Republicans continue work on a narrower third reconciliation package that currently lacks significant energy and environmental provisions.&nbsp;&nbsp;

Several Republican lawmakers believe a future reconciliation bill focused on generating budget savings and revenue could accommodate energy-related provisions that were removed from earlier legislation due to Senate procedural rules. Bruce Westerman (R-AR), Chair of the House Natural Resources Committee, said lawmakers are exploring both revised and new proposals, including measures related to energy project permitting, offshore oil and gas development, renewable energy fees on federal lands, and geothermal royalties. While House leaders have expressed interest in pursuing a fourth reconciliation bill after the midterm elections, some senators, including Shelley Moore Capito (R-WV), cautioned that it is too early to focus on the details given that Congress has not yet completed consideration of the third reconciliation package. (<a href="https://subscriber.politicopro.com/article/2026/07/gop-mulling-energy-provisions-for-reconciliation-4-0-after-3-0-snub-pro-01013691?site=pro&amp;prod=alert&amp;prodname=alertmail&amp;linktype=article&amp;source=email" target="_blank" rel="noreferrer noopener">Politico</a>)&nbsp;

EPA Exempts Data Center Power Plants from Pollution Limits:&nbsp;The Environmental Protection Agency (EPA) has issued new guidance exempting “islanded” power plants that serve only data centers and are not connected to the broader electric grid from the Clean Air Act’s Acid Rain Program. The program normally requires power plants to limit emissions of sulfur dioxide and nitrogen oxides, pollutants that contribute to acid rain, environmental damage, and respiratory health problems. EPA officials argue that these dedicated data center facilities are not electric utilities because they do not supply power to the public grid and therefore should not be subject to the program’s requirements.&nbsp;&nbsp;

The administration says the move supports U.S. leadership in artificial intelligence while helping shield consumers from higher electricity costs by encouraging data centers to generate their own power rather than draw from the grid. The decision reflects a broader Trump administration effort to accelerate data center development, including support for streamlined permitting and reduced environmental oversight. Critics view the exemption as prioritizing AI infrastructure growth over environmental protections, while supporters argue it provides regulatory clarity and helps meet rapidly growing power demands from the technology sector. (<a href="https://thehill.com/policy/energy-environment/5992657-epa-data-center-power-plants-acid-rain/" target="_blank" rel="noreferrer noopener">The Hill</a>)&nbsp;

Natural Resources and Native American Issues

Interior Releases Major Update on Coal Potential Beneath Federal Lands:&nbsp;The Department of the Interior announced a new U.S. Geological Survey assessment finding that federally managed lands contain approximately 356 billion short tons of available coal resources, in addition to 4.2 billion short tons of coal reserves associated with active mines, enough to meet current U.S. coal demand for at least 600 years. Interior Secretary Doug Burgum said the report supports the administration’s energy dominance agenda and underscores coal’s role in powering the nation’s economy. Wyoming&nbsp;remains&nbsp;the center of federal coal production, accounting for 87% of active federal coal reserves, with the North Antelope Rochelle Mine identified as the largest-producing coal mine on federal land. The report also highlights significant untapped coal potential in Alaska, where USGS estimates at least 140 billion short tons of available resources and&nbsp;possibly as&nbsp;much as 5.5 trillion short tons, while calling for&nbsp;additional&nbsp;geologic mapping to better quantify those reserves. (<a href="https://www.doi.gov/pressreleases/interior-releases-major-update-coal-potential-beneath-federal-lands" target="_blank" rel="noreferrer noopener">U.S. Department of the Interior Press Release</a>)&nbsp;

Alaska Convinces Judge to Trim Challenge to Public Land Transfer:&nbsp;An Alaska federal judge partially dismissed a lawsuit brought by 10 environmental organizations challenging the Trump administration’s transfer of&nbsp;2.1 million acres&nbsp;of federal land to Alaska. The groups&nbsp;sought&nbsp;to overturn Interior Secretary Doug Burgum’s February order revoking longstanding land protections along the Trans-Alaska Pipeline System and Dalton Highway corridor and asked the court to halt&nbsp;additional&nbsp;land transfers. Judge Aaron Christian Peterson denied their request for a preliminary injunction, ruling that sovereign immunity prevents the groups from suing the State of Alaska in federal court and finding that the plaintiffs had not&nbsp;demonstrated&nbsp;imminent irreparable harm. He also dismissed challenges involving&nbsp;1.38 million acres&nbsp;tentatively approved for transfer, although other claims against the Interior Department may continue.&nbsp;&nbsp;

In his ruling, Peterson emphasized that Congress promised Alaska&nbsp;103 million acres&nbsp;of land when it became a&nbsp;state&nbsp;and that the transfer process&nbsp;remains&nbsp;consistent with that commitment. Environmental groups criticized the decision, arguing that the administration is prioritizing mining interests over environmental protections, public participation, and community health. The land transfer is part of the Trump administration’s broader effort to expand resource development in Alaska, including mining, oil and gas drilling, and logging. Administration officials argue that opening these lands will strengthen energy production, mineral development, infrastructure, and national security. (<a href="https://www.bgov.com/news/TIUAS4VTTCZY" target="_blank" rel="noreferrer noopener">BGOV</a>)&nbsp;

For more information and assistance, contact <a href="https://communications.blankrome.com/email_handler.aspx?sid=blankform&amp;redirect=https%3a%2f%2fcommunications.blankrome.com%2femail_handler.aspx%3fsid%3dblankform%26redirect%3dhttps%253a%252f%252fwww.blankromegr.com%252fpeople%252fcj-zane%26checksum%3dE83479EA&amp;checksum=72CF48DF">C.J. Zane</a>, Managing Principal of <a href="https://communications.blankrome.com/email_handler.aspx?sid=blankform&amp;redirect=https%3a%2f%2fcommunications.blankrome.com%2femail_handler.aspx%3fsid%3dblankform%26redirect%3dhttps%253a%252f%252fwww.blankromegr.com%252f%26checksum%3d5A31E320&amp;checksum=04A1DF30">Blank Rome Government Relations LLC</a>.

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Weekly Washington Update: July 31, 2026

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