“One Big Beautiful Bill” Complete; Congress Shifts Gears
The Senate returns today while the House remains in recess until July 14. President Donald Trump is back in Washington and is expected to visit disaster-stricken Texas later this week.
Rescissions Package Timeline and Strategy
Congress has until July 18 to pass the White House’s $9 billion-plus rescissions package. Today, a motion to discharge the bill from the Senate Appropriations Committee becomes privileged, meaning any senator can force a vote. However, a vote is not expected until next week, leaving little time for final passage. Senate Republican leaders plan to bypass committee markup and pursue a substitute amendment via expedited procedures. This could leave the House with less than 48 hours to act before the statutory deadline.
Support for the rescissions package is not assured. Senators Susan Collins, Lisa Murkowski, Mitch McConnell, and Mike Rounds have voiced concerns over proposed cuts to programs including PEPFAR and public broadcasting. Senator Schumer has warned colleagues that advancing rescissions could complicate the broader fiscal year 2026 appropriations process.
Foreign Affairs and Trade
Israeli Prime Minister Benjamin Netanyahu is visiting Washington for meetings with President Trump and members of Congress. His visit follows last month’s U.S. bombing of Iranian nuclear sites. Trump is also focused on trade and has set a July 9 deadline to finalize tariff deals. Treasury Secretary Scott Bessent indicated that countries failing to complete deals by August 1 will face the higher tariff rates announced earlier this year.
FY2026 Appropriations Outlook
With the One Big Beautiful Bill complete, Congress shifts its focus to fiscal year 2026 appropriations. The process is already contentious. The White House submitted a lean budget proposal that includes over $160 billion in domestic spending cuts, increases for defense and border security, and agency closures. The Office of Management and Budget is withholding funds despite Congress passing a long-term continuing resolution in March.
House Republicans have started writing appropriations bills aligned with the Trump budget, but those are unlikely to gain traction in the Senate. The Senate Appropriations Committee will begin marking up three spending bills this week at levels that diverge from both the Trump proposal and the House drafts. Senators Collins and Patty Murray have not specified which bills they will mark up or the exact spending levels.
Reconciliation Bills Ahead
Speaker Mike Johnson has announced plans for two additional reconciliation bills, one in the fall and one in the spring. Given the fiscal year 2026 funding challenges and political divisions, it is unclear how realistic this timeline is.
Medicaid and SNAP Cuts Create Political Concern
According to a recent Capitol Hill staff survey, a majority of senior aides believe that cuts to Medicaid and SNAP included in the One Big Beautiful Bill will harm Republican prospects in the midterm elections. Eighty-five percent said the Medicaid cuts will have political consequences, including 73 percent of Republican staffers. Seventy-five percent believe the SNAP cuts will hurt the GOP as well. Senator Thom Tillis opposed the Medicaid cuts prior to announcing his retirement, and Senator Lisa Murkowski secured a last-minute exemption for Alaska.
Legislation Supporting Gig Workers
Senator Bill Cassidy is introducing legislation to create a safe harbor allowing businesses to offer independent contractors benefits like health insurance and retirement accounts without reclassifying them as employees. The Unlocking Benefits for Independent Workers Act is co-sponsored by Senators Tim Scott and Rand Paul and is part of a broader package to support the 27 million gig workers in the United States.
Media Ad Campaigns Target Public Broadcasting Cuts
PBS has launched a multi-state advertising campaign urging Congress to reject the proposed $1 billion cut to the Corporation for Public Broadcasting. Ads are airing in Maine, Utah, West Virginia, South Dakota, Alaska, Louisiana, California, Pennsylvania, Montana, North Carolina, Illinois, Kentucky, and Virginia.
