FCA Legislative Update (Week of 6-5-26)

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This Week in Congress Congress returned to a full workload this week, moving a mix of appropriations, oversight, national security, and natural resources legislation.

In the House, members advanced the Agriculture appropriations bill and several oversight measures targeting federal education, childcare, and welfare programs. The chamber also cleared fifteen Natural Resources Committee bills dealing with federal land management, including geothermal permitting reforms, an extension of BLM’s authority to collect drilling‑permit fees, and multiple land‑into‑trust transfers for Alaska, California, and New Mexico tribes. Lawmakers additionally took up War Powers resolutions on Iran and Lebanon, along with a discharge‑petition bill authorizing aid to Ukraine.

In the Senate, activity centered on the Iran War Powers resolution, early consideration of the Reconciliation 2.0 package, a procedural vote on extending FISA Section 702 authorities, and continued confirmation votes on Trump administration nominees.

FCA International Applauds BUILD America 250 Act
The BUILD America 250 Act, recently introduced by Chairman Graves and Ranking Member Larsen, has garnered widespread support from FCA International and 34 trade organizations representing the transportation construction industry. The coalition praised the legislation for providing long-term funding certainty for highways, transit, and safety improvements while introducing policy reforms designed to make federal dollars more efficient and effective.

The bill aims to keep America moving by maintaining current transportation investments and enhancing federal funding for bridges. In combination with measures such as expanding categorical exclusions and strengthening environmental review time and page limits, the BUILD America 250 Act would accelerate project delivery and ensure taxpayer dollars are used efficiently.

A key feature of the legislation is its approach to restoring equity to the Highway Trust Fund. By establishing a new fee structure for electric and hybrid vehicles, the bill ensures all users of the nation’s roads and bridges contribute fairly to maintenance and upkeep. While additional revenue will still be needed to fully fund proposed investments, the measure provides a meaningful step toward addressing funding gaps. The bill also prioritizes work zone safety, protecting workers as they perform critical transportation enhancements in hazardous conditions.

“The BUILD America 250 Act ensures the nation’s transportation construction industry can continue delivering on federal investments,” the coalition stated. “Enacting a new authorization of highway, transit, and safety programs by September 30 will ensure economic and quality-of-life benefits continue for all Americans.”

Reconciliation 3.0 or End-of-Year Tax Deal Takes Shape in Congress
House Republican leaders are continuing discussions around a potential “reconciliation 3.0” package, exploring a mix of policy priorities that could be advanced later this year. Budget Committee Chairman Arrington (R-TX) has indicated the package could include defense funding, efforts to reduce fraud in federal spending programs, and measures aimed at improving housing and healthcare affordability.

However, the timeline for advancing a third partisan reconciliation bill is increasingly constrained. Delays in moving the reconciliation 2.0 package have narrowed the available legislative window ahead of the midterm elections. With both chambers expected to recess in August and October for campaign season, and September largely focused on preventing a government shutdown ahead of the October 1 fiscal year deadline, floor time will be limited.

Republicans could instead attempt to advance a third reconciliation package during a post-election lame duck session. But that path remains uncertain, depending heavily on election outcomes and potential attendance challenges as departing members wind down their terms.

If reconciliation 3.0 does not move forward, attention is likely to shift toward a bipartisan end-of-year omnibus package, which could become the most viable vehicle for extending or enacting key tax provisions.

FY 2027 Appropriations: House Advances Bills as Senate Begins Markups
Congress is continuing work on FY 2027 appropriations, with the House Appropriations Committee having reported out seven of its 12 spending bills so far. The House has also passed one of those measures, marking early progress in the annual funding process.

In the Senate, appropriators are expected to begin marking up their own spending bills this week, even though a bipartisan agreement on interim subcommittee funding allocations has not yet been reached. Because appropriations bills require 60 votes to advance in the Senate, the process typically proceeds on a bipartisan basis.

While it is unusual for the committee to hold markups without an agreement on spending levels, it is not unprecedented. The move is widely seen as a sign that lawmakers may not reach a broader budget agreement before the upcoming elections, increasing uncertainty around the path forward for FY 2027 funding.

Iran War Powers Vote
The House on Wednesday voted 215-208 to remove the U.S. military from hostilities against the Tehran regime. While this measure is unlikely to become law, the vote delivered the biggest political rebuke so far to President Trump over his handling of the war. A vote would still have to take place in the Senate and even if this same resolution was approved the President could veto it.

The margin of victory was provided by four House Republicans who broke ranks to vote with all Democrats to end the Iran War.