Good afternoon! Congressional leaders are warning the administration to prepare for a possible lapse in Foreign Intelligence Surveillance Act (FISA) Section 702 authority before it expires Friday, June 12, after the Senate stalled on its renewal last week. The Senate Armed Services Committee begins markup of its Fiscal Year (FY) 2027 National Defense Authorization Act (NDAA), with subcommittee sessions on Monday and full committee review beginning tomorrow. In the House, the Senate-passed immigration enforcement reconciliation bill is expected to move toward final passage this week, with a vote scheduled Tuesday to send this bill to the President’s desk. The House Appropriations Committee will also mark up its FY 2027 Labor-Health and Human Services-Education and Homeland Security bills on Tuesday. Over in the White House, focus remains on Iran and Israel after the two countries traded missiles overnight, while a key economy and inflation report is expected midweek.
WHITE HOUSE
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Iran and Israel traded direct strikes over the weekend after the war’s 100th day, upending their April 8 ceasefire. Iran fired ballistic missiles at Israeli air bases, while Israel responded with airstrikes on military and energy targets inside Iran. The new attacks came hours after President Trump reportedly urged Israel to hold off on retaliating against Tehran’s missiles. President Trump reiterated this morning that he continues to work towards a peace framework with Tehran.
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Iranian-backed Houthis announced a ban on Israeli shipping in the Red Sea Monday, a key global trade route. The move threatens to widen the conflict and disrupt regional shipping. The Treasury Department is separately planning to direct frozen Iranian assets toward helping Persian Gulf allies rebuild from missile and drone damage.
- The Bureau of Labor Statistics is scheduled to release its May consumer price index report on Wednesday. The report is a key inflation gauge for the Federal Reserve. Markets will be monitoring this data closely after Friday’s strong jobs report undercut the case for interest rate cuts. The U.S. economy added 172,000 nonfarm payroll jobs in May, which was roughly double the consensus forecast.
SENATE
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The Senate has until Friday, June 12, to reauthorize FISA Section 702 after failing to advance its renewal last week. Nearly every Senate Democrat opposed the procedural vote on a three-year extension. Democrats are demanding the removal of Bill Pulte as acting Director of National Intelligence before they will back any deal. Senate Judiciary Committee Chairman Chuck Grassley (R-IA) and Intelligence Committee Chairman Tom Cotton (R-AR) sent a letter over the weekend urging the administration to prepare for a lapse in authority. Senator Mark Warner estimated that about 15 Democratic votes in the Senate would be needed to pass an extension.
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The Senate Armed Services Committee begins marking up its FY 2027 NDAA this week. Subcommittee markups begin Monday, most in closed sessions. The full committee is scheduled to mark up the bill starting Tuesday.
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The Senate will vote on Monday at 5:30 p.m. to advance Anthony Mattivi’s nomination to be a judge for the District of Kansas.
HOUSE
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The House is expected to send the Senate-passed immigration enforcement reconciliation bill to the President’s desk Tuesday. The House Rules Committee takes up the measure on Monday afternoon before scheduling a floor vote tomorrow. The Senate cleared the roughly $70 billion bill early Friday after more than 18 hours of debate. Speaker Mike Johnson (R-LA) will need to maintain Republicans’ narrow majority in the House to pass this reconciliation bill given Democratic opposition.
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The House Appropriations Committee will mark up its FY 2027 Labor-Health and Human Services-Education and Homeland Security spending bills on Tuesday. Both bills were approved by their respective subcommittees last week. The proposed Labor-HHS-Education topline would be about 9% less than FY 2026 enacted levels. The Homeland Security bill would provide $64.9 billion in funding. The remaining FY 2027 appropriations bill for defense is set for a closed subcommittee markup Thursday.
- The Justice Department (DOJ) briefed stakeholders recently on plans to begin consolidating three grant-administering offices into a new Bureau of Justice Grants starting in September, drawing concern from advocates over whether congressional approval will be required. DOJ’s FY 2027 budget proposes merging the Office on Violence Against Women (OVW), the Office of Justice Programs (OJP), and the Office of Community Oriented Policing Services (COPS) under the new bureau. Department presenters said the consolidation will proceed following approval by the Office of Management and Budget (OMB).
