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:

  • Democrats Weigh Path Forward on Post-Election Government Funding - With federal funding set to expire on December 11, lawmakers are weighing whether to finalize full-year appropriations before year-end or rely on a temporary funding measure. 
  • Senators Press Pentagon on Defense Contractor Price Transparency - A bipartisan group of senators is urging the Pentagon to strengthen defense contractor pricing oversight and prevent taxpayer overcharges through greater transparency and accountability. 
  • DOT Awards $2.3 Billion for Rail Infrastructure and Safety Projects Nationwide -The Department of Transportation announced $2.3 billion in CRISI grants for 105 freight and passenger rail projects across 45 states and Washington, D.C. 
  • Trump Administration Commits DPA Funding to Revive Pipeline -The Trump administration will provide up to $42 million in Defense Production Act funding for pre-construction and permitting work on the Constitution Pipeline, seeking to revive the long-delayed natural gas project. 
  • Interior Finalizes Rule on Wildlife Management and Subsistence Activities in Alaska National Parks - The Department of the Interior finalized a rule restoring an Alaska-specific management framework for national parks and preserves, reinstating certain wildlife management, subsistence, and public participation policies. 

Budget, Tax and Small Business

Democrats Face Key Post-Election Decision on Government Funding: Democrats are facing a strategic decision on federal government funding as current funding expires on December 11. With the possibility of gains in the House, Senate, or both following the midterm elections, many Democrats are weighing whether to finalize full-year appropriations during the lame-duck session or delay negotiations until the new year, when they could wield greater leverage over spending priorities. House Democrats, led by appropriations leaders such as Rosa DeLauro (D-CT), generally favor completing funding bills before year-end, while Senate Democrats, including Patty Murray (D-WA), have emphasized waiting until after the election to assess the political landscape. Both parties remain motivated to avoid another government shutdown, particularly after recent funding standoffs.  

Funding negotiations are complicated by partisan disagreements and a growing lack of trust between Democrats and Republicans. Key disputes include efforts to increase military spending while restraining domestic programs. Democrats are also concerned that the Trump administration could undermine future spending agreements after its recent use of a “pocket rescission” to cancel previously authorized funds, prompting calls for safeguards in future appropriations bills. While some lawmakers remain hopeful a bipartisan agreement can be reached, others are skeptical that Congress can complete all spending bills by the December deadline, raising the likelihood of another temporary funding measure and extending the fiscal battle into 2027. (BGOV) 

Defense and National Security

Warren, Grassley Press Pentagon’s Feinberg on Price Transparency: A bipartisan group of senators led by Elizabeth Warren (D-MA) and Chuck Grassley (R-IA) is pressing Deputy Defense Secretary Steve Feinberg to explain how the Pentagon will enforce greater pricing transparency among defense contractors and prevent price gouging. The lawmakers argue that decades of overcharging by defense companies have cost taxpayers billions, citing both historical examples and recent allegations of excessive markups on military supplies. They are seeking details on how the Defense Department will obtain cost and pricing data from reluctant contractors, oversee compliance, and hold companies accountable when they refuse to provide requested information.  

The senators also support legislative provisions in the pending FY2027 defense authorization bill that would require contractors to report significant price increases to contracting officers and allow public reporting of firms that fail to comply. Their concerns stem in part from a 2026 law that raised the threshold for certified cost and pricing disclosures from $2.5 million to $10 million, a change they say could limit Pentagon visibility into the majority of defense contracts. They are urging Feinberg to apply stronger scrutiny to a broader range of contracts and use existing legal authority to deny awards to companies that do not make a good-faith effort to provide pricing data, arguing that greater transparency would strengthen negotiations, improve military purchasing decisions, and protect taxpayers. (BGOV) 

Department of War and Lockheed Martin Finalize 10-Year F-35 Deal: The Department of War announced a proposed 10-year framework agreement with Lockheed Martin to strengthen and expand the F-35 Lightning II fleet, while providing long-term procurement stability for the defense industrial base. Subject to congressional authorization and appropriations, the agreement would guarantee a minimum procurement floor of 850 U.S. aircrafts over the next decade and include spare parts, modification kits, and sustainment support for the global F-35 fleet. In return, Lockheed Martin has committed to self-fund at least $7 billion in F-35-related initiatives, with the Department describing the arrangement as a key element of its Acquisition Transformation Strategy designed to increase industrial capacity, attract private investment, improve supply-chain integration, and achieve economies of scale for U.S. military aviation programs. (U.S. Department of War Press Release) 

Trade and Tariffs

US-Mexico Trade Talks Hit Impasse as Lutnick Exerts Influence: U.S. and Mexico trade negotiations have stalled over disagreements on tariffs for steel, aluminum, and related products, dimming hopes for a near-term agreement and pushing any significant progress likely until after the November 3 midterm elections. A key point of contention is Mexico’s demand for relief from Section 232 tariffs, including the 50% duties on steel and aluminum and tariffs affecting downstream manufactured products, which Mexican officials say impact a substantial portion of the country’s economy. The impasse has been compounded by the growing influence of Commerce Secretary Howard Lutnick in the negotiations, as his counterproposal reportedly failed to address Mexico’s concerns. While Mexican officials, including President Claudia Sheinbaum and Economy Minister Marcelo Ebrard, continue to express cautious optimism about reaching a deal, both sides remain divided on tariff rates and industry-specific trade provisions, creating uncertainty for businesses awaiting clarity on the future U.S.-Mexico trade relationship. (BGOV) 

Transportation

DOT Invests Over $2.3 Billion into Rail Infrastructure and Safety Across America: The U.S. Department of Transportation announced a $2.3 billion investment through the Federal Railroad Administration’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grant Program to fund 105 freight and passenger rail projects in 45 states and the District of Columbia. The grants will support improvements to more than 2,000 miles of rail infrastructure and are expected to leverage an additional $1.9 billion in state, local, and private funding. Selected projects include track rehabilitation, bridge modernization, port rail enhancements, expanded passenger rail service, and safety improvements designed to reduce congestion and strengthen supply chains. Notable awards were made for projects in Arkansas, Ohio, Maine, North Carolina, Texas, and Wisconsin, including upgrades to the Chicago-Milwaukee Hiawatha corridor. Transportation Secretary Sean Duffy said the investments are intended to improve safety, support economic growth, and advance the administration’s broader effort to usher in a “Golden Age of Rail” by modernizing rail infrastructure and expanding transportation capacity nationwide. (U.S. Department of Transportation Press Release) 

Energy and Environment

President Trump Gives New York Pipeline a Defense Production Act Boost: The Trump administration announced that it will provide up to $42 million through the Defense Production Act to help advance the long-stalled Constitution Pipeline, a proposed natural gas project that would carry gas from Pennsylvania into New York. The project was originally abandoned in 2020 after New York regulators denied a key permit, but it has gained renewed momentum amid support from the administration and developer Williams Companies. According to the Department of Energy, the funding will be used for pre-construction work and permitting activities, with the possibility of supporting infrastructure deployment if the project ultimately secures the necessary approvals. Energy Secretary Chris Wright said the pipeline would help fulfill President Trump’s goal of lowering energy costs and increasing energy supply for consumers across New York and New England. The announcement drew criticism from New York Gov. Kathy Hochul’s office, which characterized the move as politically motivated and argued that the state is pursuing a broader energy strategy that includes both fossil fuels and renewable energy sources. (The Hill) 

Top Senate Finance Democrat Maps Out Clean Energy Plan: Ron Wyden (D-OR), the top Democrat on the Senate Finance Committee, is calling for the restoration and expansion of clean energy tax incentives that were previously scaled back by Republicans. He points to new IRS data showing that nearly $2.5 billion in direct payments from the 2022 climate law helped schools and other tax-exempt entities fund electric school buses, rooftop solar projects, electric vehicles, heat pumps, and other clean energy investments during the program’s first two years. Wyden argues that the data demonstrates strong demand for programs that lower energy costs and modernize infrastructure. He has said that, if Democrats regain control of the Senate, reinstating wind and solar tax credits and strengthening the Direct Pay Program would be a top priority. He also contends that rising energy costs are tied to recent rollbacks of clean energy incentives by the Trump administration and congressional Republicans. (Politico) 

Natural Resources and Native American Issues

Interior Finalizes Rule Restoring Alaska-Specific Management Framework for National Parks and Preserves: The Department of the Interior and the National Park Service announced a final rule restoring the long-standing Alaska-specific framework for managing wildlife harvest, subsistence activities, and public access procedures in Alaska’s national parks and preserves. According to Interior, the rule largely returns management practices to those established under the 1980 Alaska National Interest Lands Conservation Act (ANILCA), reversing regulatory changes adopted in 2015, 2017, and 2024. The administration said the action aligns with President Trump’s Executive Order 14153 and is intended to strengthen Alaska’s role in fish and wildlife management, preserve subsistence traditions, and increase local participation in decision-making while maintaining National Park Service conservation responsibilities.  

The rule restores public-hearing requirements and locally focused notification procedures for certain wildlife-related closures and restrictions, removes some post-2015 limits on subsistence activities, and reinstates the use of state-authorized wildlife harvest methods in national preserves where consistent with federal law. Interior emphasized that the rule does not alter ANILCA’s federal subsistence priority for qualified rural Alaska residents, nor does it reduce the National Park Service’s authority to protect park resources and visitors. Following environmental review under the National Environmental Policy Act, the agency concluded the rule would have no significant environmental impacts. (U.S. Department of the Interior Press Release)