SBLC Update Sept 14, 2026

September 21, 2026

Congress returns from the Labor Day recess today. While both chambers previously anticipated staying in session for three weeks, House leaders decided they will send representatives home on Thursday, not to return until after the midterm elections. Senate leaders could also opt to cut their schedule short, depending on whether members can agree to move legislation.

FY 2027 Government Funding: On September 1, the House passed the stopgap funding bill sent over by the Senate in August. That bill will keep the federal government open from the end of the current fiscal year (September 30) through December 11. President Trump signed it into law on September 2.

The House has reported all 12 of its appropriations bills out of committee (although many of those advanced without any Democratic support), and the full chamber has passed three of those. House Republican leaders have not scheduled any other spending bills for floor votes this week.

The Senate is much further behind – it has not held a committee hearing on any of its bills, primarily because the parties have not yet agreed to top-line spending totals. If Sen. Mitch McConnell (R-KY) returns to work this week (he has been out for months to receive medical treatment) that would restore Republican’s one-seat committee majority, making it possible for the GOP to report out bills on a party-line basis. But it is more likely that appropriators will wait until the Lame Duck session to figure out next steps.

Supplemental FY 2026 Funding & Reconciliation 3.0: Since Congress has not acted on the administration’s FY2026 supplemental spending requests, the Department of Defense has had to move existing money between its accounts to cover shortfalls resulting from the Iran war. Leading Republican appropriators and defense hawks are pressuring the Senate to unlock the process for another party-line spending bill by passing a FY 2027 budget resolution. If the Senate were to do that in the coming weeks, House Republican leaders could bring their chamber back into session with 48-hours’ notice. But it appears that the Senate still lacks majority support to move forward.

Crypto Bills on Deck: In July, the House passed the Digital Asset Market Clarity Act (H.R. 3633), legislation to establish a regulatory framework for the crypto market. But the bill has stalled in the Senate, largely due to Democrats’ concerns that it does not sufficiently address the ethics of President Trump’s crypto investments. Republicans, led by Sen. Cynthia Lummis (R-WY), released a new draft late yesterday that incorporates White House-approved provisions covering federal officials’ engagements with digital assets. It is not yet clear whether the language will be enough to persuade Democrats to support the bill. Majority Leader John Thune (R-SD) wants to hold a procedural vote on the bill tomorrow.

Relatedly, the House Ways and Means Committee is expected to markup legislation this week that would clarify the tax treatment of virtual currencies. Chairman Jason Smith (R-MO) wants bipartisan support, but Committee Democrats could prefer to wait until next year since the party has a good chance of winning a majority in the new Congress.

Hearings for IRS Nominees: Tomorrow, the Senate Finance Committee will hold a hearing to consider the nominations of James Gadwood to serve as the Chief Counsel for the IRS and Andrew De Mello to fill the last open seat on the Tax Court. If confirmed, Gadwood would fill a position that has remained vacant since the start of the second Trump administration. De Mello, currently an IRS employee, served as acting chief counsel at the IRS last year, following the forced resignation of William Paul.

House: The House returns today, with votes contemplated through Thursday. The schedule includes five measures to be considered under a rule, requiring simple majority support for passage:

The Senate-passed Russia sanctions bill (Senate amendments to H.R. 5334), which would sanction Russian leaders, financial institutions, and energy sectors; authorize the president to target countries that purchase Russian oil and gas with tariffs up to 100%; and extend sanctions on Iran’s weapons and energy sectors
Two bills aimed at enhancing anti-fraud enforcement by codifying the National Fraud Enforcement Division within the Department of Justice (H.R. 9576) and enhancing information-sharing capabilities between the Justice Department and state governments to support investigations into federal benefits fraud (H.R. 10326)
Two resolutions brought pursuant to the Congressional Review Act to disapprove of EPA waivers approved during the Biden administration that allow California to adopt stricter vehicle emissions standards (H.J. Res. 210 and H.J. Res. 213)

The schedule also lists 71 bills to be considered under suspension of the rules, requiring two-thirds majority support for passage. Several of those bills are sponsored by Republican incumbents facing toss-up reelection races. The list includes:

A bill that would direct the Treasury Secretary to stop minting the penny and require cash transactions to be rounded up or down to the nearest five cents (H.R. 10167)
Several bills addressing concerns over rising energy costs, including one that aims to protect consumers from increased utility costs driven by grid upgrades needed to service large data centers (H.R. 9340)
A handful of tax administration bills, including one that would postpone tax deadlines for hostages and other persons wrongfully detained abroad (H.R. 9496) and another that prevents taxpayers from being subject to indefinite IRS scrutiny if their tax preparer commits fraud without their knowledge (H.R. 9499)
The Water Resources Development Act (H.R. 9497), which would authorize water-related projects
A bill to prohibit FEMA from discriminating based on political affiliation when granting federal disaster assistance (H.R. 1342)
Several border security bills
A bill that aims to provide clear guidelines for valuing employer stock in ESOPs (S. 2403)

You can view the full list of bills here: Weekly Schedule | Majority Leader.

The chamber may also consider a War Powers resolution that would direct the President to remove troops from hostilities in Iran (H. Con. Res. 93).

Senate: The Senate also returns today, with votes contemplated through Friday.

Republican leadership has teed up a procedural vote tomorrow on the Digital Asset Market Clarity Act (H.R. 3633), discussed above. If the cloture motion secures the required 60-votes, the Senate could spend a week or more on debate before voting on passage. If it does not pass, Majority Leader Thune wants to pivot to the college sports NIL bill (S. 4668). Again, if that measure secures the required 60-votes to move to debate, the chamber will be tied up for days moving towards a final vote on passage.

The chamber could take up a bill to reauthorize FISA section 702 surveillance authorities. If it does not do that this week, the issue will be pushed to after the election since the House would not be in session to take up the measure.

Senate Republicans want to confirm as many administration nominees as possible before the end of this Congress. Leaders anticipate votes this week on judicial nominations and perhaps on the confirmation of Labor Secretary nominee Keith Sonderling.

Finally, Minority Leader Chuck Schumer (D-NY) says that Democrats will try to force a vote on an Iran War Powers resolution.

Notable committee action this week includes:

Tuesday, September 15, 10:00 am

House Financial Services Committee

Hearing – The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System

Tuesday, September 15, 11:00 am

House Small Business Innovation, Entrepreneurship, and Workforce Development Subcommittee

Hearing – Main Street Meets Crypto: What Digital Assets Mean for Small Businesses

Wednesday, September 16, 9:30 am

House Agriculture Committee

Hearing – Increasing Demand and Opportunities for Homegrown Products Here and Abroad

Thursday, September 17, 9:30 am