Good afternoon! Both the House and Senate left Washington early this week as an impasse arose when President Trump declined to sign a bipartisan housing bill unless Congress passed voter identification legislation. The Trump administration sent Congress an $87.6 billion supplemental funding request. NATO Secretary General Mark Rutte met with President Trump ahead of the July 7 alliance summit in Turkey. The Senate Agriculture Committee released the text of the Farm bill. The Senate failed to pass a War Powers resolution to end hostilities with Iran after approving a similar resolution earlier in the week. The House Appropriations Committee approved a record $1 trillion Fiscal Year 2027 (FY27) defense funding bill on a party-line vote. House Budget Chairman Jodey Arrington (R-TX) signaled the Committee may take action on a third budget reconciliation legislation before the July 4 recess.
WHITE HOUSE
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President Trump abruptly canceled signing the bipartisan 21st Century ROAD to Housing Act on Wednesday, explaining that he would not sign until Congress passed the SAVE Act, a voter identification bill. After meeting with the president later in the week, Speaker Johnson officially sent the housing bill to the White House. This starts the 10-day clock where the bill will become law without the President’s signature unless he vetoes the legislation.
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The Trump administration submitted an $87.6 billion supplemental funding request on Wednesday, the large majority of which would go to pay for costs of the Iran conflict. The package includes $67.1 billion for the Defense Department, with $21 billion for munitions procurement and $12.1 billion for classified programs. It also requests $11.1 billion for agricultural producers and $1.4 billion to address the Ebola outbreak. The request also would provide $11.1 billion for farmers and ranchers, as well as reconstruction of New York’s Penn Station, pension relief for retired autoworkers, and a reversal of the upcoming ban on retail hemp-derived products.
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NATO Secretary General Mark Rutte met with President Trump in the Oval Office this week to highlight increased European defense spending as the White House considers troop drawdowns across Europe. Rutte, formerly the prime minister of the Netherlands, cited over $250 billion in NATO spending over the past two years and credited Trump with encouraging European and Canadian allies to align their defense spending with that of the United States. The meeting occurred ahead of the NATO summit beginning July 7 in Ankara, Turkey.
SENATE
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After passing an Iran War Powers resolution earlier in the week, the Senate voted 47-50 against advancing a similar resolution sponsored by Senator Tim Kaine (D-VA) that would bar further unauthorized military action against Iran. Two Republicans who had previously supported the preceding resolution changed their votes. Senator Rand Paul (R-KY) voted present, stating he wanted to give President Trump room to negotiate now that hostilities appeared over. Senator Bill Cassidy (R-LA) switched to opposing after a White House briefing on Iran by Vice President J.D. Vance and Special Envoy to the Middle East Steve Witkoff.
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Senate Agriculture Committee Chairman John Boozman (R-AR) released his five-year Farm bill draft. Senate Agriculture Ranking Member Amy Klobuchar (D-MN) and Committee Democrats said any Farm bill must address SNAP program changes enacted in the 2025 reconciliation bill. Boozman hopes to mark up the bill before the August recess.
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Senate Appropriations Chair Susan Collins (R-ME) canceled a scheduled Thursday markup to consider four appropriation bills until after the July 4 recess. The move was due in part to Democratic opposition to moving forward without a top-line FY27 funding amount and the absence of Committee member Mitch McConnell (R-KY).
HOUSE
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Rep. Anna Paulina Luna (R-FL) and like-minded conservatives blocked a procedural rule needed to advance the FY27 Energy & Water and National Security & State Department funding bills. Luna stated she would lift her procedural opposition only if the SAVE Act was included in the annual National Defense Authorization Act, arguing this was the only way to prompt Senate action on SAVE. Senate Majority Leader John Thune (R-SD) and other Senate Republicans note the elections bill lacks the 60 votes needed to pass independently.
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The House Appropriations Committee approved a record $1.072 trillion FY27 Defense funding bill Wednesday in a 34-27 party-line vote. The bill allocates funding Pentagon and intelligence programs, covering most of the Trump administration’s discretionary base defense request. The White House had requested $1.5 trillion in total defense funding for FY 2027, with $350 billion to be included in a potential future reconciliation bill outside the committee’s jurisdiction.
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House Budget Chairman Jodey Arrington (R-TX) said Thursday he believes a budget resolution to begin the reconciliation process could be marked up before the July 4 recess. This would be the third reconciliation bill considered this Congress. Arrington emphasized that identifying spending offsets remains the key issue to gaining support on the House floor.
