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:

  • Cantwell Urges Congress to Restore Transportation Funding - A report from Sen. Maria Cantwell warns that transportation projects nationwide could face significant funding gaps after the expiration of the 2021 infrastructure law and urges Congress to approve $36.8 billion in advance appropriations.
  • DOT Awards $498 Million to Upgrade U.S. Ports and Strengthen Supply Chains - The Trump Administration announced $498 million in grants for 35 port infrastructure projects across 19 states to modernize facilities, improve cargo movement and supply chain efficiency, enhance maritime competitiveness, and support broader investments in U.S. shipping and shipbuilding.
  • Trump Administration Moves to Roll Back Federal Methane Regulations - The Trump administration proposed rolling back methane regulations on oil and gas producers, arguing the changes will lower costs and boost energy production.
  • Interior Distributes $21.8 Billion in Energy Revenues Across Federal, State, and Tribal Programs - The Department of the Interior distributed more than $21.8 billion in FY 2026 energy and mineral revenues, the second-largest annual disbursement in its history.

Budget, Tax and Small Business

Top Senate Democrat Pushes Transportation Money Before Midterms: A report released by Senator Maria Cantwell (D-WA), the top Democrat on the Senate Commerce Committee, warns that transportation infrastructure projects across the country could face substantial funding gaps unless Congress approves $36.8 billion in advance appropriations for key federal grant programs. The report says that states have already seen a roughly 30% decline in federal transportation support following the October 1 expiration of the 2021 bipartisan infrastructure law, putting funding for bridges, transit systems, rail networks, airports, ports, and other critical infrastructure at risk. Programs that could be affected include the Bridge Investment Program, Capital Investment Grants, Consolidated Rail Infrastructure and Safety Improvements, National Infrastructure Investments, and Airport Infrastructure Grants. Cantwell is urging Congress to restore funding during the upcoming lame-duck session or through the annual appropriations process, arguing that failure to act could delay projects, hinder economic growth, and weaken transportation systems nationwide. (BGOV) 

Defense and National Security

US Pushes Defense Cooperation Framework with Southeast Asia: Secretary Pete Hegseth announced that the United States is proposing a new U.S.-ASEAN defense cooperation framework aimed at strengthening security ties with Southeast Asian partners over the coming years and reinforcing regional deterrence amid growing concerns about China’s influence. Speaking at defense meetings in Cebu, Philippines, Hegseth said the framework would provide a practical roadmap for military cooperation as the U.S. and ASEAN approach the 50th anniversary of their relationship in 2027. He also met with defense officials from regional partners, including Japan, Australia, and India, to discuss broader security coordination.  

During his visit, Hegseth also expanded defense cooperation with the Philippines, agreeing with Defense Secretary Gilberto Teodoro to launch an alliance command-and-control modernization initiative and increase U.S. funding support for the Philippine military. As this year’s chair of ASEAN, the Philippines has continued deepening military ties with Washington under President Ferdinand Marcos Jr., including hosting major exercises and granting greater U.S. access to military bases. These expanding ties have drawn criticism from China, which remains engaged in disputes with Manila in the South China Sea and sent a lower-level representative to the regional defense summit. (BGOV) 

Nuclear Inspectors See No Evidence Iran Fixed Bombed Sites: Rafael Grossi, head of the International Atomic Energy Agency (IAEA), told the U.N. Security Council that Iran has shown no signs of repairing or rebuilding nuclear facilities damaged in U.S. and Israeli strikes conducted in 2025 and 2026. Grossi emphasized that IAEA inspectors have been unable to verify the status of Iran’s stockpile of highly enriched uranium since the attacks, and he urged Tehran to grant inspectors access to all nuclear sites, including those affected by the military operations.  

The Security Council meeting was convened after the IAEA referred Iran for failing to meet its nuclear nonproliferation obligations. Western countries argued that Iran must answer outstanding questions about its nuclear activities and cooperate with inspectors, while Iran rejected the criticism and condemned the U.S.-Israeli strikes as unlawful aggression. Iranian officials maintained that the country’s nuclear program is peaceful, but the IAEA noted that Iran continues to possess a significant stockpile of uranium enriched to 60 percent purity, which is close to weapons-grade levels. (The Hill) 

Trade and Tariffs

US Trade Gap Hits Widest Since March 2025 on Capital Goods: The U.S. merchandise trade deficit widened for a third consecutive month in September, reaching $134.9 billion, its largest level since March 2025 and well above economists’ expectations. According to the Commerce Department data, imports increased 2.4% while exports rose 2.6%, but a sharp surge in capital goods imports continued to drive the imbalance. Imports of capital goods, including computers, semiconductors, and telecommunications equipment used in the expanding AI and data center sector, jumped 7.5% to a record high. Economists noted that the growing demand for foreign-made technology hardware has become the primary factor behind the deterioration in the trade balance over the past year.  

The deficit in capital goods is now $54.3 billion larger than a year ago, accounting for more than the entire increase in the overall trade gap during that period. While exports of consumer goods and food products posted solid gains, they were partially offset by weaker exports of industrial supplies such as petroleum products. The trade figures are significant because they feed into third-quarter GDP calculations, with economists expecting net exports to be a substantial drag on economic growth. However, some analysts believe this negative impact could be partially offset by strong business investment in equipment and computer technology tied to the ongoing AI investment boom. (BGOV) 

Transportation

Transportation Secretary Invests Half a Billion into Modernizing America’s Ports, Bolstering Supply Chains: U.S. Transportation Secretary Sean Duffy announced a $498 million investment through the Maritime Administration’s Port Infrastructure Development Program (PIDP) to modernize ports across the United States, funding 35 projects in 19 states. The investments will support upgrades at coastal, Great Lakes, and inland river ports, including new docks and cranes in Alaska, fuel-terminal resilience improvements in Florida, seafood infrastructure enhancements in Maine, cargo-handling upgrades in Minnesota and Texas, and technology modernization projects in North Carolina and Corpus Christi. The administration says these projects are intended to strengthen supply chains, improve port efficiency, accommodate larger vessels, and enhance the movement of goods throughout the country.  

According to Secretary Duffy, the investments are part of the Trump Administration’s broader effort to restore U.S. maritime competitiveness, lower shipping costs, and create jobs. MARAD Administrator Stephen M. Carmel said the funding will help port communities modernize operations, adopt new technologies, and improve safety. The announcement also highlighted a larger maritime agenda that includes nearly $1.4 billion in port and marine highway funding, streamlined permitting for deepwater ports, a $2 billion investment in military shipbuilding, modernization of the United States Merchant Marine Academy, and support for next-generation ship technologies such as small modular nuclear reactors. (U.S Department of Transportation Press Release) 

Energy and Environment

President Trump Announces Proposal to Loosen Methane Rules for Oil and Gas Production: President Trump announced at a campaign rally in Lubbock, Texas, that his administration plans to significantly loosen federal methane regulations on the oil and gas industry, describing the move as the termination of Biden-era methane rules developed with EPA Administrator Lee Zeldin. The proposal would ease requirements for low-producing oil and gas wells, relax restrictions on flaring excess gas, eliminate the Super Emitter Program that requires companies to respond to credible reports of major methane leaks, and provide greater flexibility in emissions monitoring and compliance standards. The administration argues the changes could save the industry roughly $45 billion and increase domestic oil and natural gas production through 2050, while critics contend the rollback will increase methane emissions and worsen climate change. The Biden administration had previously estimated that its methane standards would prevent 58 million tons of methane emissions between 2024 and 2038. (The Hill) 

Study Finds Permitting Bill Would Lower Emissions and Reduce Costs: A new analysis from nonprofit Resources for the Future finds that the Senate’s bipartisan permitting legislation, the Bipartisan American Affordability and Jobs Act (S. 5653), would lower electricity prices and carbon emissions over the next 15 years by accelerating expansion of the U.S. transmission grid. The study projects annual energy costs could decline by as much as 7% through 2041, generating roughly $350 billion in consumer savings by 2050, while increasing transmission capacity by about 30% and reducing carbon emissions by approximately 1.8 gigatons through 2041. Supporters argue the bill would facilitate clean energy deployment, improve affordability, and strengthen grid reliability, while critics contend that proposed changes to environmental review laws could benefit the oil and gas industry and weaken protections for impacted communities. (BGOV) 

Natural Resources and Native American Issues

Interior Delivers Second-Largest Energy Revenue Disbursement: The U.S. Department of the Interior announced that it disbursed more than $21.8 billion in fiscal year 2026 revenues from energy and mineral production on federal and tribal lands and offshore areas, representing the second-largest annual energy revenue distribution in the department’s history. The funds support the U.S. Treasury, states, tribes, conservation initiatives, infrastructure projects, education, emergency services, and historic preservation programs. The department attributes the strong revenue performance to the Trump administration’s energy policies, including expanded access to federal resources and streamlined permitting, while highlighting a record-setting Bureau of Land Management oil and gas lease sale in New Mexico and Texas that generated more than $4 billion.  

Of the total disbursement, $7.53 billion went to the U.S. Treasury, $6.68 billion to 34 states, $5.1 billion to the Reclamation Fund, $1.04 billion to the Land and Water Conservation Fund, and $918 million to tribes and individual Indian mineral owners. New Mexico received the largest state allocation at more than $5.26 billion, followed by Wyoming ($484.5 million), Louisiana ($218.8 million), and Texas ($131.7 million). Alaska received approximately $28.4 million in fiscal year 2026 energy revenue disbursements from federal energy production. The department has noted that tribal recipients receive 100 percent of proceeds from production on Indian lands, helping fund infrastructure, healthcare, education, public safety, and other community development priorities. Since 1982, the department has distributed more than $424 billion in mineral leasing revenues nationwide. (U.S. Department of the Interior Press Release) 

Secretary Burgum Signs Order to Support American Ranchers, Expand Grazing and Cut Red Tape: Secretary Doug Burgum signed an order to expand livestock grazing opportunities on federal lands and reduce regulatory barriers for ranchers as part of the Trump administration’s effort to strengthen the domestic livestock industry. The order implements President Trump’s executive order supporting American ranchers and is intended to boost meat production, support rural economies, and help lower consumer costs amid historically low cattle herd levels. Key provisions direct federal agencies to identify additional lands for grazing, streamline permit approvals and renewals, reduce permit backlogs through new technology, improve coordination with the U.S. Forest Service, and review predator management policies. The initiative also promotes managed grazing as a means of improving rangeland health, reducing wildfire risk, and controlling invasive species. (U.S. Department of the Interior Press Release)