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 Johnson Blocks Challenge to President Trump’s Spending Cuts - Senate Democrats failed to overturn the Trump administration’s cancellation of $810 million in approved funding after Republicans blocked their effort. 
  • Senator Cruz Blocks Fast Track Vote on AI Safety Bill - Senate Democrats’ effort to fast-track the Artificial Intelligence Risk Management and Security Act was blocked, stalling legislation that would have established federal oversight and safety standards for advanced AI systems amid a broader debate over balancing AI risk management and innovation. 
  • CBO Finds BUILD America 250 Act Could Speed Infrastructure Delivery -The BUILD America 250 Act would streamline environmental reviews and expand state permitting authority to accelerate transportation project delivery by an average of five months. 
  • President Trump Highlights $200 Billion South Korean Investment Package for U.S. Energy Sector - President Trump announced an initial $200 billion tranche of South Korea’s broader U.S. investment commitment focused on nuclear, natural gas, and LNG infrastructure projects. 
  • Senate Releases Text of Permitting Reform Bill - Senate leaders unveiled the bipartisan 2026 permitting reform package, which would streamline federal reviews and accelerate energy and infrastructure projects, but its prospects remain uncertain amid lingering disputes over offshore wind policy, competing House legislation, and a compressed post-election legislative schedule. 

Budget, Tax, and Small Business

Senator Johnson Blocks Attempt to Undo President Trump’s Cancellation of $810 Million in Spending: Senate Democrats failed in a last-minute effort to reverse the Trump administration’s cancellation of $810 million in congressionally approved spending after Senate Budget Committee Chair Ron Johnson (R-WI) blocked a unanimous consent request led by Jeff Merkley (D-OR) and Patty Murray (D-WA). The dispute centers on the administration’s use of a “pocket rescission,” a budget maneuver that allows the White House to withhold funding during a 45-day congressional review period. Because the review window extended to the end of the fiscal year, the administration argues that the funds expired and could be permanently canceled without congressional approval.

Democrats argue the tactic unlawfully bypasses Congress’s constitutional spending authority and point to criticism from the Government Accountability Office, which has said the maneuver violates existing budget law. While efforts to restore the funding legislatively have stalled for now, Democrats plan to seek restrictions on future pocket rescissions in upcoming year-end appropriations negotiations. Legal challenges are also emerging, including a lawsuit over a $56 million reduction in housing counseling funding. The broader spending cuts announced by the administration target immigration and climate-related programs and are expected to remain a significant issue heading into the lame-duck session and the November midterm elections. (BGOV) 

Defense and National Security

US Ends Military Mission in Iraq: The United States has formally ended its 12-year military mission in Iraq, with U.S. Central Command announcing the complete withdrawal of American forces and equipment from Erbil Air Base as part of the wind-down of Operation Inherent Resolve. The move transitions the relationship to a bilateral U.S.-Iraq defense partnership, while U.S. operations in Jordan will continue to support counter-ISIS efforts in neighboring Syria. CENTCOM Commander Adm. Brad Cooper said Iraqi security forces now have the capability and independence to manage threats on their own and that responsibility for Iraq’s security has been fully transferred to the Iraqi government. (The Hill)

RTX Wins $21 Billion Deal to Boost Air-to-Air Missile Output: The Pentagon awarded RTX’s Raytheon division a $20.7 billion contract, spanning five years with two optional extension years, to nearly double production of key air-to-air and other missile systems, including AMRAAM and Tomahawk variants. The award builds on earlier framework agreements designed to expand manufacturing capacity and accelerate deliveries as the Trump administration prioritizes strengthening the defense industrial base and replenishing munitions stocks depleted by conflicts involving Iran and Ukraine. RTX is also pursuing additional suppliers in Europe and exploring partnerships to increase domestic capacity, while other major defense contractors are similarly expanding missile production capabilities. (BGOV)

Trade and Tariffs

Senator Cruz Blocks Democrats Bid to Vote on AI Safety Bill: A group of Senate Democrats led by Mark Warner (D-VA), Brian Schatz (D-HI), and Andy Kim (D-NJ) attempted to fast-track passage of the Artificial Intelligence Risk Management and Security Act through unanimous consent, but Ted Cruz (R-TX) blocked the effort, preventing the bill from advancing. The legislation would have created a new safety board within the Commerce Department to review advanced AI models before deployment, establish industry safety standards, and require reporting of AI-related safety and security incidents. Supporters argued that Congress needs to act quickly to address growing concerns about the risks posed by artificial intelligence, while Cruz contended that lawmakers should not rush AI regulation and warned that the proposal would give the federal government excessive authority over what AI technologies could be released. (Politico) 

Transportation

CBO Finds House BUILD America 250 Act Would Speed Up Project Spending: According to a new Congressional Budget Office (CBO) analysis, the bipartisan BUILD America 250 Act (H.R. 8870) would exempt certain transit-related developments from requirements under the National Environmental Policy Act (NEPA) and the National Historic Preservation Act, while also giving states greater authority to conduct project reviews. CBO estimates these changes would speed spending for roughly 25% of affected transportation accounts by an average of five months. The measure passed the House Transportation and Infrastructure Committee in May but has not yet received a House floor vote. The report also notes that Highway Trust Fund accounts for highways and transit are projected to face cumulative shortfalls of nearly $100 billion and $48 billion, respectively, by the end of 2031, although a proposed fee on electric and hybrid vehicles could generate about $12 billion in additional revenue. (BGOV) 

Senate Labor Panel Advances Trump Rail Mediation Agency Nominees: The Senate Health, Education, Labor and Pensions (HELP) Committee voted 12-11 on September 30 to advance the nominations of Loren E. Sweatt and Douglas Ralph to the National Mediation Board, the agency responsible for resolving labor disputes in the railroad and airline industries under the Railway Labor Act. Sweatt, the board’s current chair, was nominated for a second term, while Ralph, a former airline captain, was nominated to fill another seat. If both are confirmed by the full Senate, Republicans would move closer to securing a majority on the three-member board. The agency recently played a key role in mediation efforts involving Long Island Rail Road unions and the Metropolitan Transportation Authority, disputes that ultimately led to the first LIRR strike since 1994. (BGOV) 

Energy and Environment

President Trump Unveils $200 Billion in South Korean Energy Investments: President Trump announced a $200 billion package of South Korean investments in U.S. energy infrastructure, representing the first tranche of the $350 billion investment commitment made under last year’s U.S.-South Korea trade agreement. The package includes funding for eight nuclear reactors in the United States, a major gas-fired power facility in Texas, and support for the long-discussed Alaska LNG export project. President Trump framed the initiative as a boost to American energy dominance, supply chain security, and U.S.-South Korea relations, while also highlighting its economic and political significance ahead of the midterm elections. The investments, however, remain contingent on conditions negotiated by Seoul, including requirements that projects meet commercial viability standards and receive additional approvals.

The largest component is up to $120 billion for eight nuclear reactors, including both Korean-designed APR1400 units and Westinghouse AP1000 reactors. Other projects include the approximately $22 billion “Project Star” natural gas power plant in Texas, intended to supply electricity directly to data centers, and potential South Korean participation in the Alaska LNG project, for which Seoul has not yet made a final funding commitment. The agreement includes safeguards limiting total investments and establishing a profit-sharing framework that allows South Korea to recover its principal and agreed returns before the U.S. receives a larger share of future profits. While the announcement marks a major step forward for several large-scale energy projects, many details remain subject to further negotiations, due diligence, and legislative approval in South Korea. (BGOV) 

Senate Unveils Permitting Reform Bill: This week, Senate leaders released the text of the Bipartisan American Affordability and Jobs Act of 2026, a 417-page permitting reform package intended to accelerate federal approvals for energy and infrastructure projects. The bill is the result of months of negotiations between Republicans and Democrats and includes provisions to streamline environmental reviews, establish a two-year deadline for environmental impact statements, and expand federal authority to approve major interstate transmission lines. Senate sponsors hope to bring the legislation up for a vote when Congress returns after the midterm elections.

The negotiations were repeatedly complicated by disputes over the Trump administration’s actions affecting offshore wind projects. Democratic negotiators temporarily withdrew from talks after the administration suspended several East Coast offshore wind projects but later returned following Interior Department actions advancing certain solar projects. While disagreements over offshore wind lease language surfaced again before the bill’s release, negotiators ultimately announced a deal and unveiled the legislation. The bill’s path forward remains uncertain because the House has already approved its own permitting reform measure and both chambers face a tight legislative timeline after the elections. (Politico Pro)

Natural Resources and Native American Issues

U.S. Department of Energy Announces $99 Million for 21 Projects to Advance U.S. Geothermal Energy Development: The U.S. Department of Energy announced more than $99 million in funding for 21 geothermal energy projects aimed at advancing next-generation geothermal technologies and expanding domestic energy production. The selected projects include five field-scale enhanced geothermal systems (EGS) demonstrations and 16 exploration drilling efforts to identify and evaluate promising geothermal resources across the country. DOE officials emphasized that geothermal energy can provide reliable, around-the-clock power while strengthening U.S. energy security and supporting growing electricity demand. The projects are intended to reduce technical and development risks, encourage future private investment, and generate publicly available data through DOE’s Geothermal Data Repository to support broader industry innovation and geothermal resource development. (U.S. Department of Energy Press Release)