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.

Top of the News:

  • Senator Foresees Final Republican Budget Bill if Party Loses Control - Republicans are considering using the post-election lame-duck session to pass a sweeping reconciliation package advancing key Republican priorities, particularly if they lose control of Congress in the 2026 midterms. 
  • Federal Contract Spending to Surpass $1 Trillion - Federal contract spending is projected to exceed $1 trillion in FY 2026, driven by increased defense and immigration enforcement spending.  
  • Court Grants Class Action Status to Tariff Refund Lawsuit - A federal court expanded eligibility for refunds of President Trump’s 2025 tariffs, opening access to billions in remaining repayments for affected importers. 
  • DOE and ABS Launch Partnership to Advance Nuclear Powered Maritime Infrastructure - The Department of Energy and the American Bureau of Shipping have signed an agreement to support the development of nuclear-powered ships, floating nuclear power systems, and related maritime infrastructure. 
  • Proposed Notice Issued for Second Cook Inlet Lease Sale - MMA proposed a March 2027 Cook Inlet offshore oil and gas lease sale covering 1.05 million acres, advancing a congressionally mandated leasing program to boost domestic energy production. 

Budget, Tax and Small Business

Senator Expects Final Budget Bill if Republicans Loses Power: Sen. Bernie Moreno (R-OH) said Republicans should be prepared to remain in Washington through the end of the year after the 2026 midterm elections if necessary to pass a sweeping budget reconciliation package containing key Republican priorities in the event the party loses control of Congress. Because reconciliation allows tax and spending legislation to pass the Senate with a simple majority, Republicans are exploring how to maximize its use during a lame-duck session, including potential measures on taxes, spending, defense funding, replenishing U.S. weapons stockpiles, and possibly raising the debt ceiling before a new Congress is seated. Moreno described such a post-election bill as Republicans’ “last opportunity” to legislate under unified government, while Rep. Rob Wittman (R-VA) emphasized that defense authorization and additional reconciliation legislation would be top priorities when lawmakers return. (BGOV)

Defense and National Security

Federal Contract Spending to Top $1 Trillion: According to projections cited by Bloomberg Government, federal contract spending is expected to top $1 trillion in fiscal year 2026. The increase is being driven largely by the Trump administration’s priorities of national security and immigration enforcement, despite earlier efforts by the Department of Government Efficiency (DOGE) to reduce federal spending. Experts noted that even when agencies are downsized, government demand for goods and services often remains, leading to greater reliance on private-sector contractors.  

Much of the growth comes from two areas: the Department of Homeland Security, which significantly expanded spending to support detention and deportation operations, and the Department of Defense, where procurement spending for weapons systems and other military needs is expected to rise sharply. Civilian procurement reached an estimated $344.7 billion, while unclassified defense procurement is projected at $660.9 billion, up 26.5% from the prior year. (BGOV) 

Trade and Tariffs

Sidelined Tariff Refunds Get Class Action Status: A recent ruling by the U.S. Court of International Trade significantly expands the pool of importers eligible to seek refunds for tariffs imposed under President Trump’s 2025 use of the International Emergency Economic Powers Act (IEEPA). The court certified a class consisting of all importers of record who paid these tariffs between February 1, 2025, and February 19, 2026, provided they had not already filed separate lawsuits. The decision is important because it covers businesses that may not have had the resources or ability to pursue individual legal claims. The tariffs were ultimately ruled unlawful by the Supreme Court in February 2026, and Customs and Border Protection has already begun processing refunds, with approximately $136.6 billion in potential refunds accepted and certified so far. There remains roughly $30 billion in duties still to be returned. 

The class action is intended to ensure that remaining refunds reach all affected importers, particularly those with older, fully liquidated entries that Customs previously said required individual court action to recover. The court may ultimately direct Customs to broaden access to its refund-processing system, potentially enabling all class members to obtain refunds without separate litigation. The case does not directly benefit consumers, since refunds are paid only to importers of record, even though tariff costs were often passed down through supply chains to businesses and consumers. Attorneys for the class are now focused on notifying affected importers and advising them to preserve records of tariff payments while the refund process continues. (BGOV)

Bipartisan Duo Maps Out AI Safety Plan as Congressional Action Drags: A bipartisan Senate pair, Maria Cantwell (D-WA) and Mike Rounds (R-SD), is pressing the Trump administration to move more aggressively on artificial intelligence safety as congressional efforts to pass AI legislation remain stalled. In a letter to senior administration officials, the senators warned that recent AI security incidents demonstrate that advanced AI systems can evade safeguards, escape testing environments, and gain unauthorized access to government and private-sector systems, creating significant cybersecurity and critical infrastructure risks.  

The senators outlined several administrative steps the executive branch could take now. Their recommendations include strengthening federal AI safety and security standards through the National Institute of Standards and Technology (NIST), expanding independent AI testing and evaluation efforts through the Department of Energy and national laboratories, engaging universities and third-party researchers in AI oversight, and partnering with the technology industry to deploy defensive AI tools that can detect threats and protect vulnerable systems. They argue that AI's potential misuse by malicious actors for sophisticated cyberattacks and attacks on critical infrastructure requires an immediate, whole-of-government response. (Politico)

Transportation

Aerospace CEOs Meeting with Duffy on Certification Reform: Leading aerospace executives, including Kelly Ortberg of Boeing, Christopher Calio of RTX, and Larry Culp of GE Aerospace, met with Transportation Secretary Sean Duffy and FAA Administrator Bryan Bedford in Savannah, Georgia, to discuss ways to modernize and accelerate the federal certification process for new aircraft and aerospace components. Administration officials argue that streamlining approvals is necessary to support innovation, maintain U.S. competitiveness, and prevent countries such as China from gaining an advantage in aerospace development. The meeting focused on gathering industry feedback about inefficiencies in the current certification system and identifying potential regulatory reforms. 

Aircraft certification has become a major bottleneck for aerospace manufacturers, particularly Boeing, which has faced extensive regulatory scrutiny following the 737 MAX crashes and subsequent safety incidents. Although Boeing recently secured approval for the 737 MAX 7 and expects certification of the MAX 10 soon, the company continues to encounter challenges with its 777X program. The FAA has already proposed reforms aimed at reducing the time and cost of certifications by limiting the need for exemptions and special safety findings, while industry groups are also advocating for broader changes through Congress. Supporters of reform contend that a more efficient certification process can improve both safety oversight and the industry's ability to innovate and grow. (BGOV) 

Energy and Environment

Energy Department Partners with Shipping Group on Nuclear Plan: The Department of Energy has entered into a memorandum of understanding with the American Bureau of Shipping (ABS) to advance the development of commercial nuclear applications in the maritime sector, including nuclear-powered merchant vessels, floating nuclear power generation, and nuclear transportation corridors. ABS, the leading U.S. ship classification society responsible for establishing safety and technical standards critical for marine insurance, will support concept and feasibility studies and build on rules it previously developed for floating nuclear power plants. The agreement is part of the Trump administration’s broader effort to promote a “nuclear renaissance” and strengthen domestic shipbuilding through advanced nuclear technologies. It follows a series of related federal initiatives, including partnerships involving the Maritime Administration, the Ports of Long Beach and Corpus Christi, nuclear ship-energy developers, and coordination between the Coast Guard and Nuclear Regulatory Commission on reactor licensing and vessel inspections. (BGOV) 

Oil and Gas Exploration Set to Begin in Greenland: President Trump announced Wednesday that large-scale oil, gas, and mineral exploration activities are expected to begin in Greenland, highlighting the territory’s abundant natural resources and strategic importance to U.S. and European defense. The announcement follows a security agreement reached last month among the United States, Denmark, and Greenland that expands U.S. military access and includes provisions for minerals cooperation. However, Jørgen Hammeken-Holm, Greenland’s deputy mining minister, cautioned that the territory remains far from any major extraction boom, noting that existing exploration projects face significant technical and economic challenges, including difficult Arctic conditions and costly resource extraction. (The Hill) 

Natural Resources and Native American Issues

MMA Announces Proposed Notice of Sale for Second Cook Inlet Lease Sale: Last week, the Marine Minerals Administration (MMA) announced a proposed offshore oil and gas lease sale in Alaska’s Cook Inlet scheduled for March 2027, which would offer approximately 1.05 million acres across 224 blocks in the northern Cook Inlet Planning Area. The sale is the second in a series of congressionally mandated lease sales required under the Working Families Tax Cut Act of 2025, which directs MMA to hold six Cook Inlet lease sales between 2026 and 2032. MMA stated that the proposal is intended to support domestic energy production and includes a proposed 12.5 percent royalty rate. The agency will publish a Notice of Availability in the Federal Register, triggering a 60-day review period for the State of Alaska and affected local governments before a Final Notice of Sale is issued. The announcement also notes that the former Bureau of Ocean Energy Management and Bureau of Safety and Environmental Enforcement were reunified in 2026 under MMA to oversee offshore energy and marine mineral development. (U.S. BOEM Press Release)