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.

Budget, Tax, and Small Business

Republican Senators Eye Spending Cuts as Part of Post-Election Agenda: Senate Republicans aligned with President Trump are preparing a potential post-election budget reconciliation package that would combine emergency defense funding, a higher debt ceiling, and significant federal spending cuts. Senate Majority Leader John Thune (R-SD) has indicated that major decisions on another reconciliation bill will likely wait until after the November election. Republicans are seeking ways to offset the costs of additional defense spending, including funding related to the Iran conflict, while also addressing the administration’s request for roughly $5 trillion in additional borrowing authority through the end of Trump’s term.

Conservative senators such as Rick Scott (R-FL), Ron Johnson (R-WI), and Rand Paul (R-KY) are pushing for substantial spending reforms as a condition for supporting a debt-limit increase. Johnson has suggested cutting between $250 billion and $1 trillion in annual federal spending, while Paul has called for reforms to programs such as Medicaid. Republicans view the post-election period as a possible final opportunity to enact fiscal changes if Democrats gain control of the House or Senate. At the same time, other Republican lawmakers, including Thune and Jerry Moran (R-KS), say they would prefer to pass defense funding through the regular bipartisan appropriations process rather than relying on reconciliation. (The Hill)

Democrats Launch Bids for Top Spot on Small Business Panel: Rep. Nydia Velázquez’s (D-NY) retirement at the end of 2026 has sparked a growing contest for the top Democratic position on the House Small Business Committee, with Rep. Gil Cisneros (D-CA) and Rep. Sharice Davids (D-KS) formally launching bids to serve as chair or ranking member in the next Congress. Both lawmakers emphasized their small-business backgrounds in making their case for the role, with Cisneros also highlighting Hispanic representation in committee leadership and Davids noting she could become the first Native American woman to chair a House committee. The leadership race comes amid broader expected committee shakeups as Congress prepares for a new session and Democrats are viewed as having a strong chance to regain the House majority, potentially increasing their oversight authority over the Trump administration. Meanwhile, Rep. Morgan McGarvey (D-KY), currently the committee’s vice ranking member, said he will not seek the post and instead plans to pursue a caucus leadership role. (BGOV)

Defense and National Security

House Passes Iran War Powers Resolution: This week, The Democrat backed war powers resolution passed the House by a 220-204 vote, aiming to limit President Trump’s ability to continue military action in Iran without explicit congressional authorization. Seven Republicans joined Democrats in supporting the measure, marking an increase in bipartisan backing compared with previous votes on similar resolutions. Supporters argued that Congress has never authorized war with Iran and contended that the administration has continued military operations without a clear legal mandate or long-term strategy.

The vote comes amid growing concern over the human and financial costs of the conflict. According to lawmakers and recent government reports, the war has resulted in the deaths of 18 U.S. service members, injuries to more than 800 others, and at least $42 billion in military costs. A Pentagon watchdog also reported approximately $184 million in damage to U.S. diplomatic facilities in the Gulf region from Iranian strikes, while the Congressional Budget Office has warned the conflict could increase inflation and continue costing billions of dollars each month. The debate has intensified as more than 50,000 U.S. troops remain deployed in the region and critics question the administration’s lack of a clearly defined exit strategy. (The Hill)

Trade and Tariffs

House Passes Bill Allowing New Tariffs on Russia Oil Buyers: Congress has given final approval to legislation that would grant President Trump new authority to impose tariffs on countries that purchase Russian petroleum products. The House passed the bill 262-159 after the Senate approved it earlier, and the measure now heads to the president’s desk for signature. Supporters, including many pro-Ukraine lawmakers, argue the legislation will increase economic pressure on Vladimir Putin and countries helping sustain Russia’s war effort by buying discounted Russian oil and gas. The bill could affect major purchasers of Russian energy such as China, India, and Turkey, and includes authority for tariffs on countries that facilitate sanctions evasion. It also extends the Iran Sanctions Act of 1996 through 2031.

The measure expands presidential tariff powers and could have significant implications for global trade and energy markets. Business groups, including the US Chamber of Commerce and the National Foreign Trade Council, opposed the bill, warning it could create the basis for a broader tariff regime affecting U.S. trading partners. Critics, including Rep. Gregory Meeks (D-NY), argued the legislation could raise costs for consumers and worsen inflation, while supporters such as Rep. Brian Fitzpatrick (R-PA) and Rep. Eugene Vindman (D-VA) contended that stronger economic consequences are necessary to deter Russian aggression. The Kremlin condemned the legislation as an unfriendly act and warned it could complicate ongoing efforts to negotiate an end to the war in Ukraine. (BGOV)

Transportation

Senator Capito Says Surface Transportation Reauthorization Bill Is on Hold Until After the Election: Senator Shelley Moore Capito (R-WV), chair of the Senate Environment and Public Works Committee, said the Senate will not release a draft surface transportation reauthorization bill until after the midterm elections, pushing consideration of a long-term highway package into the final weeks of 2026. Capito said other priorities, including permitting reform efforts, have taken precedence. Current federal funding authorities for highway, bridge, transit, and rail programs expire on December 11 under a continuing resolution that extended funding beyond the original September 30 deadline.

Meanwhile, the House's proposed five-year, $580 billion transportation reauthorization bill, H.R. 8870 BUILD America 250 Act, remains stalled after advancing from the House Transportation and Infrastructure Committee in May. The legislation includes several contentious provisions, including a new user fee on electric and hybrid vehicles, a requirement for two-person train crews, and liability protections for ride-hailing companies such as Uber. With the Senate bill delayed and the House measure at an impasse, Congress appears increasingly likely to address transportation funding only after the election, leaving uncertainty about the future of major federal infrastructure programs. (BGOV) 

 Energy and Environment

House Passes Measure to Overturn California Clean Air Waiver: This week, the House narrowly voted 216-211 to approve H.J. Res. 210, a Congressional Review Act resolution that would revoke a 2023 EPA waiver allowing California to require certain emissions controls for vessels docking at its ports. Republicans argue the waiver increases costs and expands California’s regulatory reach, while Democrats contend the waiver is not a “rule” eligible for repeal under the Congressional Review Act. The vote comes despite a recent federal court injunction ordering the EPA to reverse its reclassification of several California waivers from orders to rules, including the waiver targeted by the resolution. The measure now moves to the Senate, where lawmakers will decide whether to continue Congress’s broader effort to overturn California’s Clean Air Act waivers and limit the state’s ability to impose environmental standards stricter than federal requirements. (BGOV) 

Water Resources Development Act Passes the House: This week, the House passed the Water Resources Development Act of 2026 (WRDA 2026) by a bipartisan 415-9 vote. The legislation authorizes and modifies projects aimed at maintaining ports and harbors, improving navigation on waterways, reducing flood and storm damage, restoring aquatic ecosystems, protecting fish and wildlife and shorelines, addressing harmful algal blooms, rehabilitating dams, enhancing recreation facilities, and supporting water supply and storage infrastructure. It also seeks to speed project delivery by creating a Corps and directs the Corps to establish streamlined environmental permitting through categorical permissions for certain harbor and river improvement projects with only minimal environmental impacts. (Rep. Rick Larsen Press Release) 

Natural Resources and Native American Issues

Alaska Gold Exploration Permit Upheld Despite Whale Concerns: A federal judge upheld the U.S. Army Corps of Engineers' approval of a Clean Water Act permit for the Johnson Tract gold exploration project near Lake Clark National Park in Alaska, rejecting claims that the agency inadequately evaluated environmental impacts or violated the Endangered Species Act by not consulting on potential effects to the endangered Cook Inlet beluga whale. The permit allows JT Mining, a subsidiary of Contango Ore Inc., to discharge fill into regulated waters and construct infrastructure including an access road, airstrip improvements, and material sites to support mineral exploration. Environmental groups including Center for Biological Diversity, Cook Inletkeeper, and the Chickaloon Village Traditional Council expressed disappointment with the ruling, arguing the project could threaten wildlife, water resources, and ecosystems connected to Lake Clark and Cook Inlet, and pledged to continue opposing the mine’s development. (BGOV)