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With the “One Big Beautiful Bill” signed into law, Congress shifted focus on pushing through a $9.4B rescissions package, advancing FY 2026 appropriations, navigating National Defense Authorization Act (NDAA) markups, and responding to notable retirements reshaping the chamber's landscape

Rescissions Package

  • Republicans aim to codify $9.4 billion in rescissions, cancelling previously approved funding for NPR, PBS, and foreign aid before the July 18 deadline or risk automatic spending.
  • The Senate is expected to vote next week, but Republican leaders must rally support amid resistance from centrists like Sens. Collins (R-ME), Murkowski (R-AK), Sullivan (R-AK), and Rounds (R-SD, especially on cuts affecting rural stations and public health.

 Appropriations & Shutdown Risk

  • Senate appropriators began FY 2026 consideration on Thursday, opting for individual bills to dodge an omnibus or a continuing resolution (CR). The August recess looms as a deadline threat.
  • In the House, only one appropriations bill has been passed, with four others advanced through committee. Chair Cole (R-OK) aims to finalize all 12 by July 30, though Republican unity remains fragile as VA funding passed with only two Democratic votes.

 Reconciliation 2.0 & NDAA

  • Speaker Johnson is preparing for two more reconciliation bills, likely targeting entitlements or regulatory reform, with conservative hardliners expecting inclusion of stipulations from One Big Beautiful Bill Act (OBBBA) negotiations.
  • Senate Armed Services considered its version this week; the House Armed Services Committee follows next Tuesday. Expect debate on troop deployment rules in Europe, acquisition reforms, and cybersecurity defenses.

 Balance of Power

  • Sen. Thom Tillis (R–NC) confirmed he will not seek reelection in 2026, signaling fatigue with polarization and Trump criticism that cost him support. His exit opens a competitive seat and highlights fissures in Republican unity.
  • Rep. Don Bacon (R–NE), a moderate known for bipartisan cooperation, also announced his retirement, exiting a competitive Nebraska district and widening the GOP’s narrow House majority gap.
  • Rep. Mark Green (R–TN) officially resigned over the July 4 weekend, leaving early after helping pass OBBBA; a special election will follow his departure.

House

  • Rescissions Debate: The House considered the $9.4 billion rescissions package this week, though leadership is still working to consolidate Republican support amid pushback over cuts to public broadcasting and global health programs.
  • Appropriations Markups: The House Appropriations Committee continues moving through FY 2026 spending bills, with Chair Cole aiming to complete all 12 by July 30. Four have advanced out of committee so far, with floor action expected to remain slow and highly partisan.
  • Disaster Response: Members affected by the Texas flooding, including Reps. Pfluger and Carter, are expected to push for oversight of the National Weather Service’s forecasting failures and may seek emergency relief measures.
  • Reconciliation Planning: Speaker Johnson is consulting with conservative factions to determine the content and timing of two additional reconciliation bills, with a focus on entitlement reform and regulatory rollbacks.

Senate

  • Rescissions Vote Preparation: The Senate is preparing to vote no earlier than next week on the White House’s rescissions request to cancel $9.4 billion in previously authorized funding. GOP leaders are navigating internal opposition from moderate Republicans like Sens. Collins (R-ME) and Murkowski (R-AK).
  • Appropriations Markups: The Senate Appropriations Committee began its FY 2026 consideration on Thursday, focusing on Military Construction-VA and Homeland Security. Leaders aim to advance individual bills to avoid a September omnibus or continuing resolution.
  • NDAA Markup: The Senate Armed Services Committee began its full consideration of the FY 2026 NDAA Tuesday afternoon. Key issues on the table include European troop posture, weapons procurement reform, and cybersecurity investments.
  • Reconciliation Readiness: Behind the scenes, Senate Republicans are discussing the scope and viability of additional reconciliation packages, though floor movement remains dependent on House progress and internal consensus.
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