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Legislative Update

Senate. The Senate is in recess and will return July 13.

House. Last week, House leaders planned to pass two appropriations bills – the Energy and Water Development bill and the National Security and Department of State bill. However, the House never took votes on those measures after a handful of lawmakers threatened to block all legislation until the Senate passes the SAVE America Act, legislation that would require proof of citizenship to register to vote in federal elections and tighten identification rules at the polls.

Lacking the votes to pass a rule for floor debate, Speaker Mike Johnson sent the House home on Thursday, cancelling plans for Friday votes. Later on Thursday, President Trump posted that “House Republicans should unify, and stop voting down ‘Rules’ or, threatening to do so.” However, Rep. Anna Paulina Luna (R-Fla.), who is leading the effort to block House votes, has not indicated whether she and others will vote this week for the rules to clear the way for floor consideration of legislation.

In addition to the rule for the two appropriations measures, House leaders are planning for a vote on a rule that will allow for floor consideration of the National Defense Authorization Act (NDAA). The Rules Committee met Monday evening to decide which of the thousand amendments that have been submitted will be voted on by the full House.

Among the bills that will be considered under suspension of the rules is legislation that would extend the Terrorism Risk Insurance Act (TRIA) program through 2034. The public-private reinsurance program, which covers losses from terrorist attacks, is scheduled to expire in December 2027. Also on the suspension calendar is the Kids Internet and Digital Safety (KIDS) Act, which aims to strengthen online safety for young users.

The House is scheduled to recess Thursday afternoon until July 13, when it returns for only eight session days, before beginning its summer recess after votes on July 23.

Senate Appropriations. The Senate left for its recess last week without any action on FY 2027 spending bills. The Appropriations Committee had scheduled a markup for June 25 of four bills but had to postpone votes due to the absence of Senator Mitch McConnell (R-Ky.). With a committee makeup of 15 Republicans and 14 Democrats, Chair Susan Collins (R-Maine) needed the support of all the panel’s Republicans to pass the measures, given what was expected to be unified Democratic opposition until the two parties agree on overall top-line numbers for defense and non-defense spending. The four bills scheduled for markup were Agriculture-FDA, Military Construction-Veterans Affairs, Commerce-Justice-Science, and Legislative Branch.

Committee Action of Note:

Monday, June 29

  • House Rules Committee meeting to formulate a rule on legislation, including H.R. 8800 – National Defense Authorization Act for Fiscal Year 2027

Tuesday, June 30

  • House Financial Services Committee Markup on legislation, including:
    • H.R. 1483, the Protecting Investors’ Personally Identifiable Information Act
    • H.R. 5402, the Credit Access and Inclusion Act of 2025
    • H.R. 5775, the FCRA Liability Harmonization Act
    • H.R. 7030, the Securing Facilities for Mental Health Services Act
    • H.R. 7187, the Clarity for Compensation Act
    • H.R. 9329, the SEC Reform and Restructuring Act
    • H.R. 9330, the Earned Wage Access Consumer Protection Act
    • H.R. 9331, the Strengthening Transaction Oversight and Preventing (STOP) Payments Fraud Act of 2026
  • House Education and Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education Hearing: “Field of Fees: Private Equity’s Role in the Commercialization of American Youth Sports”
  • House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade Hearing: “American Global Competitiveness at 250: Legislative Proposals to Secure U.S. Technology Leadership”

Wednesday, July 1

  • House Small Business Committee Hearing: “250 Years of American Legacy: Small Businesses and the American Dream”
  • House Science, Space, and Technology Committee Hearing: “Weathering the Solar Storm: Advancing America’s Space Weather Capabilities”
  • House Education and Workforce Subcommittee on Health, Employment, Labor, and Pensions Hearing: “Direct Contracting: A Prescription for Lower Health Care Costs”

Executive Action

On Monday, the President signed a Presidential Memorandum directing the Environmental Protection Agency to issue guidance clarifying what actions individuals may take to fix their own vehicles’ emissions systems, consistent with the Clean Air Act. Among the executive orders the President signed last week are two orders aimed at advancing U.S. quantum research and development and protecting U.S. information technology systems against quantum computer-based cyberattacks.

Tariff Update

DSTs. On Friday, President Trump said in a social media post that he would levy a 100% tariff on imports from any country that imposes a digital services tax (DST). Referencing “numerous European Countries” that have been discussing the implementation of a digital services tax on U.S. companies, Trump said the threatened U.S. tariff would be imposed “immediately” and supersede any existing trade deals with affected countries. It is unclear what legal authority Trump would use to impose immediate country-specific tariffs.

Political Update

Colorado Primary. Today, Democrats will be closely watching the outcomes in two Colorado congressional districts. In the 1st District, 15-term Rep. Diana DeGette is facing a challenge from 29-year-old democratic socialist Melat Kiros. In the 8th District, there is a battle over which Democrat will challenge GOP Rep. Gabe Evans in November. The race pits former state Rep. Shannon Bird, who has the backing of the centrist Blue Dogs, against state Rep. Manny Rutinel, who is running to Bird’s left. In addition to the Democratic Senate primary, where Senator John Hickenlooper is running for re-election, Colorado’s other Senator, Michael Bennet, is on the ballot and facing a stiff challenge from Attorney General Phil Weiser in his race to be the Democratic nominee for governor.

www.psw-inc.com


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