FCA Legislative Update (Week of 8-7-26)

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This Week in Congress

The House recessed on July 23 and will return on August 31. The Senate is set to adjourn for its August recess at the end of this week, though leadership may extend votes into the weekend to finish outstanding priorities. Senators are not expected back until September 14.

Before departing, the Senate considered several notable items, including stopgap funding legislation (H.R. 6500), Russia sanctions (H.R. 5334), a resolution enabling en banc confirmation of administration nominees (S. Res. 817), potential procedural votes on the Digital Asset Market Clarity Act (H.R. 3633), and the Protect College Sports Act (S. 4668).

The chamber also continued efforts to confirm Todd Blanche as Attorney General. Sen. Lee (R‑UT) signaled he may attempt to force a vote to delay or cancel the recess to debate the SAVE America Act, an election security measure backed by President Trump and Senate Republicans, though such an effort is expected to fail.

FCA International and 112 Members of Congress Urge Stronger USMCA Extension to Protect American Manufacturing and Workers
FCA International, along with the National Association of Manufacturers (NAM) and many similar associations including 112 members of Congress, urged U.S. Trade Representative Jamieson Greer to pursue a strong extension of the United States-Mexico-Canada Agreement (USMCA) that strengthens North American competitiveness and addresses outstanding trade concerns.

The bipartisan congressional effort was led by Rep. Yakym (R-IN), who joined lawmakers in expressing support for Ambassador Greer’s efforts to secure a high-quality agreement that benefits American manufacturers, farmers, ranchers, workers, service providers, energy producers, and businesses across the country.

In a letter to Ambassador Greer, lawmakers thanked the U.S. Trade Representative for his efforts to ensure a level playing field for American industries and emphasized the importance of using the USMCA Joint Review process to strengthen the agreement. The letter highlighted that July 1 marked the statutory date of the USMCA Joint Review, an opportunity for the United States, Mexico, and Canada to evaluate whether the agreement is meeting its commitments and address emerging economic challenges.

Members of Congress noted that the USMCA was the result of extensive negotiations with congressional input and received strong bipartisan support when approved. They emphasized that the agreement has provided greater certainty for businesses, encouraged reshoring of manufacturing, supported job creation, increased wages, promoted innovation, and expanded export opportunities throughout North America and global markets. However, lawmakers argued that the Joint Review process provides an opportunity to address areas where improvements are needed. The letter urged the administration to focus on several priorities, including:
Securing promised market access commitments that have not been fully realized;
Addressing new trade actions by Mexico and Canada that negatively impact American manufacturers, agriculture producers, service providers, and workers;
Countering unfair trade and investment practices from third countries that threaten North American economic competitiveness and American jobs; and
Improving tariff structures to strengthen regional supply chains and competitiveness in the global marketplace.
While lawmakers expressed support for extending the USMCA, they emphasized that achieving meaningful outcomes should take priority over meeting an arbitrary deadline. “The desired result is an extension agreed to by the United States, Mexico, and Canada,” the members wrote, while encouraging all three countries to work constructively and efficiently toward an agreement that delivers measurable benefits for North American businesses and workers.

FCA International supported the congressional letter, reinforcing the manufacturing sector’s interest in maintaining a stable, predictable North American trade framework while ensuring that USMCA partners uphold their commitments. As negotiations continue, manufacturers and lawmakers are calling for a strengthened USMCA that promotes investment, protects American jobs, and ensures North America remains competitive in the global economy.

Congress Moves Toward Short-Term Government Funding Extension as FY 2027 Appropriations Remain Unfinished
Congress is moving toward another short-term government funding measure as lawmakers work to avoid a shutdown while negotiations over Fiscal Year 2027 appropriations continue. On July 21, the House of Representatives passed H.R. 9770, legislation that would extend government funding at current levels from the end of the fiscal year on September 30 through December 4. The measure received limited bipartisan support, with six Democrats joining Republicans in voting for passage.

The Senate Appropriations Committee has since released its version of a continuing resolution, which would fund the government through December 11. The Senate proposal includes several funding adjustments, or “anomalies,” requested by the administration to address specific program needs during the extension period. However, the Senate package does not include the substantial increase in defense funding sought by the administration. It also contains provisions limiting certain executive branch actions during the funding extension, including temporarily preventing the White House Office of Management and Budget (OMB) from finalizing a proposed rule requiring senior political appointee approval of federal grants. That restriction would remain in effect only for the duration of the continuing resolution.

Additionally, the Senate measure includes language prohibiting new funding from being used for immigration enforcement activities during the temporary funding period. Senate Majority Leader Thune (R-SD) is expected to bring the legislation to the Senate floor for an initial procedural vote as leadership works to advance the measure before the chamber begins its August recess.

Despite Senate action, the funding bill will not take effect unless the House approves the Senate version when lawmakers return in September. With differences between the two chambers remaining unresolved, negotiations are expected to continue throughout the recess period as Congress works toward a final agreement before the September 30 funding deadline.

House Advances FY 2027 Budget Resolution, Setting Stage for Potential Third Reconciliation Package
Congress is taking steps toward a potential third budget reconciliation package after the House of Representatives approved its Fiscal Year 2027 budget resolution on July 22. The House passed H. Con. Res. 113, which would establish the framework for future reconciliation legislation by directing four House committees — Armed Services, Intelligence, Agriculture, and Administration — to develop legislation addressing key Republican priorities. Under the budget resolution, the committees would be instructed to prepare legislation providing:
Up to $73 billion for defense and intelligence priorities;
$12 billion in agricultural assistance; and
$10 billion to support state election security programs.
The resolution is intended to begin the reconciliation process, allowing legislation to move through Congress with expedited procedures and avoiding the Senate filibuster threshold typically required for major legislation.

President Trump has urged Senate Republicans to approve their own budget resolution before the chamber leaves for the August recess. However, the President has also called for the Senate measure to include instructions for addressing the federal debt ceiling. Republicans increased the debt limit by $5 trillion, from $36.1 trillion to $41.1 trillion, as part of last year’s reconciliation package. Current projections indicate the federal government will reach the new limit sometime next year. The President has argued that addressing the debt ceiling sooner would provide greater flexibility before the 2026 midterm elections. His position is based on the expectation that if Democrats gain control of one or both chambers, they could seek policy concessions in exchange for supporting a future debt ceiling increase.

White House Office of Management and Budget Director Russ Vought encouraged Senate Republicans to focus the current budget resolution and any resulting reconciliation package on the administration’s immediate spending priorities. He has suggested that a debt ceiling increase could instead be addressed through a potential fourth reconciliation package during the post-election lame-duck session.

Senate Republicans are also considering whether to significantly increase the amount of defense funding included in their version of the budget resolution. Senate Majority Leader Thune has not indicated that he intends to bring a budget resolution to the Senate floor before the August recess. Under the Budget Act of 1974, any senator may force the Senate to vote on a motion to proceed to consideration of a budget resolution. While such an effort would likely fail, it could create political pressure on Republican senators who oppose moving forward with the measure before the recess. Negotiations are expected to continue as Senate Republicans determine the scope, timing, and priorities of a potential reconciliation package heading into the fall legislative session.

FY 2027 National Defense Authorization Act
The House passed its version of the NDAA (H.R. 8800) on July 22. The Senate is not expected to bring up its own bill for a floor vote until sometime after it returns from the August recess.

Congressional Turnover
As of now, 15% of Congress will not return to their seats next year. Thanedar (D-MI) lost his Democratic primary election to state Rep. Donavan McKinney. Thanedar is the eighth sitting House member to lose in a primary this year. Six of the eight have been Democrats.

When you add in Thanedar plus the retirement of Rep. Chuck Edwards (R-NC), 68 House members won’t be back after the November elections (60 seats changed hands in all of 2024). So far, 12 Senate members will not be back.

August Newsletter Recess
During August, legislative updates will be limited while Congress is out of session. Full‑length updates will resume in September as lawmakers return to address a crowded fall agenda. We wish you a safe and restful August and look forward to fully reconnecting when Congress is back in session.