Our weekly column is back in a shorter format—less than a 10-minute weekly read—with a rundown of key domestic and international developments. For a deeper read, go to TrillionsWeekly.com to access comprehensive resources on federal spending, taxes, the debt ceiling, and the economy. Always nonpartisan and factual.
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The House of Representatives and Senate are now in recess until after Labor Day. The House returns Tues, Sept. 8, 2026, and the Senate Mon, Sept. 14, 2026. Last week, the Senate passed a bipartisan stopgap funding measure to avoid an October 1 shutdown, but the measure requires House approval in September (explained below). Also last week, the Senate passed a Russia sanctions bill but failed to pass a budget resolution requested by the Administration—a procedural prerequisite for a filibuster-proof $95 billion budget reconciliation bill to fund Trump’s Iran War, relief for farmers from higher fuel and fertilizer costs, and funding for state voter-ID grants.
(1) MAJOR FISCAL (BUDGETARY) NEWS
APPROPRIATIONS: THE SENATE EARLY SATURDAY PASSED 90-6 a BIPARTISAN STOPGAP FUNDING BILL (HR 6500) TO AVOID AN OCTOBER 1 GOVERNMENT SHUTDOWN. The Senate passed HR 6500, a continuing resolution (“CR”) to fund the government at current FY 2026 levels through December 11, 2026.
This measure is required because Congress has not completed action on the 12 regular appropriation bills for FY 2027. (The new fiscal year begins October 1, 2026.)
The House has taken up and passed only 3 bills (Agriculture, Military Construction-VA, and State). The Senate Appropriations Committee has passed no bills due to the lack of bipartisan agreement on a total for discretionary spending in FY 2027.
For a deep dive on the CR, read this section-by-section explanation and the bill text.
The Senate-passed CR now requires House passage (when they return from summer recess) or negotiation of the differences between the Senate’s bipartisan CR and the House-passed GOP-leadership version (HR 9770)—which nearly all House Democrats opposed.
There are significant differences between the Senate’s bipartisan CR and the House GOP CR. The Senate-passed CR contains two rebukes of Administration policy which could be opposed by House Republicans:
A temporary ban through December 11 on implementation of the White House Office of Management and Budget (OMB) proposed rule that would effectively give political appointees veto authority over federal grants (section 157 of the CR); and
A bar on further funding for CBP by closing “the loophole in the (House-passed) CR that would have allowed the Trump Administration to transfer funding provided for other programs to Border Patrol (CBP).”
The Senate bill also includes some special provisions (“anomalies”) requested by the Administration to begin or adjust funding of particular projects.
If the House passes the Senate’s bipartisan CR, will President Trump sign the measure? UNCLEAR. He could oppose it because:
It does not include the SAVE Act Voter ID provisions he has repeatedly demanded;
It includes provisions that bar his proposal to put political appointees in charge of federal grants; and
It bars authority to transfer additional funding to deportations.
See daily updates on the CR at our appropriations tracker at Appropriations.Com.
BUDGET RESOLUTION / RECONCILIATION STALL IN THE SENATE:
“Budget Reconciliation” is a congressional budget procedure permitting budget-related legislation to move through Congress on a fast-track—immune from Senate filibuster—meaning it can pass the Senate with 50%-plus-1, rather than the customary 60 votes for major legislation. Since the beginning of the 2d Trump Administration, reconciliation has been used twice: (1) the “Big Bill” in July 2025 enacting major tax cuts, spending increases for defense and deportations, and big cuts in Medicaid, SNAP, and student aid; and (2) in June of 2026 to circumvent the appropriations process and fund deportation spending through the end of Trump’s term.
The Administration and GOP leaders are now aiming for a 3rd reconciliation bill, but that is held up in the Senate. The House began the process last month on 7/22/26 by passing a budget resolution calling for committees to report reconciliation legislation enacting $73 billion in Iran-related defense and intelligence funding, $12 billion in farm aid to compensate for war-related fuel and fertilizer costs, and $10 billion to incentivize states to adopt elements of the Trump “SAVE Act” aimed at suppressing voter turnout through stringent voter ID policies. Learn more about the SAVE Act.
However, while the Senate Budget Committee last week released its version of a budget resolution to begin the reconciliation process, the Senate failed to advance the budget resolution prior to recessing for the rest of August; in fact, they didn’t take a Floor vote on the budget resolution.
OTHER FISCAL NEWS:
Republicans aren’t advancing Trump’s huge $1.5 trillion defense budget: Hegseth can’t persuade Republicans to back his 50% increase in defense spending.
Congressional Budget Office estimates that the new class of warships sought by President Trump is expected to cost at least 50 percent more than earlier estimates, with an ultimate price tag of $275 billion.
(2) TRUMP’S IRAN WAR – Day 164:
LATEST -- Saudi Arabia, Turkey, Pakistan pledge mutual defense as Middle East turmoil escalates; and Egypt may join the defense pact--underscoring the decline of America as a stabilizing force in the Middle East. Meanwhile, Iran insists the Strait of Hormuz will stay closed until the U.S. Agrees to its demands.
For a deeper dive, read: How the U.S. Squandered Its Strategic Advantage: Idle threats and munitions shortages have boxed Trump in. And despite extensive reporting on U.S. weapons shortages, Trump denies US weapons shortages and says information ‘leakers’ are being ‘hunted down’.
Who is benefitting from the chaos Trump unleased on the Middle East: CNN reports on oil company profits.
3) MAJOR ECONOMIC, TRADE, AND “AI” NEWS
JOB LOSSES: The U.S. jobs market stalled unexpectedly last month, complicating decision-making for the Federal Reserve. Employers cut 23,000 jobs in July. And Labor Department revisions slashed 103,000 jobs from May and June payrolls.
TRADE: 25 states sued over Trump’s new tariffs, calling them ‘pretext’ to replace his old ones; and Trump may get new tariff authority, courtesy of a Russia sanctions bill.
FEDERAL RESERVE: Trump revives effort to fire Fed’s Lisa Cook—again threatening Fed’s independence.
BANKING AND FINANCE: Private-sector loan defaults hit record high.
THE PROBLEM WITH GOVERNMENT OWNERSHIP: With $4 billion spent on equity stakes since December, Commerce Secretary Howard Lutnick is increasingly entangling the U.S. government in the private sector.
ARTIFICIAL INTELLIGENCE: Nvidia strikes $500 billion AI financing deal; Data Center lenders are getting nervous about community opposition. Senator Ron Wyden, Ranking Democrat on the Senate Finance Committee, has proposed new taxes on data centers and House Democrats have proposed a levy on AI companies to be used for displaced workers.
CURRENCY NEWS: U.S. and Japan Intervened last week to boost the Yen for the first time since 1998. The intervention comes after the yen touched a 40-year low against the dollar late last month. However, the Financial Times reported today, the Yen sinks as the effect of the US-Japan intervention fades.
To access economic and trade numbers in real-time, visit our Real-TimeNumbers.com page.
(4) HEALTH
EBOLA OUTBREAK: The World Health Organization (WHO) says the current Ebola outbreak is the worst ever in the DRC. To date, no Ebola cases linked to the DRC have been confirmed in the U.S., although the CDC has lost over one-quarter of its workforce, the White House pandemic office has been eliminated, and the U.S. has withdrawn from the WHO.
CDC: Dr. Erica Schwartz was confirmed as CDC’s first official director in a year.
VACCINES: Trump orders childhood MMR shots to be split up, citing repeatedly debunked Autism conspiracy theories; and a new kind of flu shot is on the way as the FDA approves Moderna’s mRNA-based vaccine.
(5) POLITICAL AND LEGAL NEWS
SENATE CONFIRMS BLANCHE FOR ATTORNEY GENERAL: Todd Blanche, who has served as acting attorney general since April, eked out Senate approval last week, despite growing unease about his willingness to rein in President Trump. Commentary: The elevation of Trump’s personal attorney to AG, cements Trump’s transition of the Department of Justice from a nonpartisan guarantor of the Rule of Law, to a legal office serving the personal and political interests of Donald Trump.
TRUMP’S CORRUPT TAX IMMUNITY DEAL: Trump faces suit over immunity memo signed by Blanche.
STATES SUE to shield anti-poverty program data from DHS.
(6) OTHER KEY DOMESTIC DEVELOPMENTS
CHILD CARE / HEAD START: Trump administration moves forward with Head Start overhaul, proposing to eliminate regulations setting standards for childcare and early education.
PAYING COMPANIES TO TERMINATE WIND POWER: Trump administration’s latest buyback of offshore wind leases brings the taxpayer tab to nearly $4 billion. Why is Trump virulently opposed to wind power? His fixation appears to have begun with a proposed offshore wind project visible from his Aberdeenshire, Scotland golf course. Trump argued that the turbines would spoil the landscape, harm tourism, and diminish the resort’s appeal; he pursued a lengthy but unsuccessful campaign against the project. That experience seems to have turned a local commercial dispute into a lasting political crusade.
CLIMATE: July was the hottest month on record in the U.S.; and Appeals Court says E.P.A. cannot block billions in climate grants.
STUDENT FINANCIAL AID: 450,000 student loan borrowers eligible for debt relief after court ruling.
IMMIGRATION: Trump targets birth tourism and citizenship in new executive orders.
WASTE AND FRAUD: How predatory trade schools drained $300 million from the GI Bill and cheated veterans.
(7) OTHER KEY GLOBAL DEVELOPMENTS
UKRAINE: Senate on Friday passed 86-11 a Russia sanctions package that would penalize countries that buy Russian oil and gas in an effort to cut off resources for Putin’s war machine. The bill that was sponsored by the late Sen. Lindsey Graham may face an uphill battle in the House in September.
MALTA AND TAX CHEATS: The Mediterranean archipelago is a hot destination for U.S. companies seeking to shield profits from income taxes.
(8) OTHER READS/VIDEOS THAT MAY BE OF INTEREST
DOGE RECKONING: DOGE claims of saving $110 billion are incorrect and unreliable, GAO says.
NUCLEAR RENAISSANCE? Nuclear as an Energy Security and Climate Solution.
ICYMI: 2001: A Budget Odyssey in The Hill.
AUTOMATIC CR: New CBPP paper exploring the “automatic CR”.
Visit our digital library of public policy resources.
Speaking engagements and press interviews can be scheduled by calling: (301) 509-5688. Email comments, suggestions, and questions to: info@trillionsweekly.com.
About the author: Charles S. Konigsberg J.D. served as Assistant Director, White House Office of Management and Budget; General Counsel at the U.S. Senate Finance Committee, where he had principal responsibility for managing federal budget and debt limit legislation; Minority Chief Counsel at the U.S. Senate Rules & Administration Committee where he advised the ranking member on budget, appropriations, trade, and tax legislation; Staff Attorney at the U.S. Senate Budget Committee where he had responsibility for federal fiscal law issues including the Impoundment Control Act and wrote the Senate’s first explanation of the congressional budget process; Director of Congressional Affairs at the Consumer Financial Protection Bureau and AmeriCorps; and Staff Director of the only national bipartisan budget task force to agree on a unanimous long-term debt stabilization plan. He is admitted to the U.S. Supreme Court Bar, the District of Columbia Bar, and the Ohio Bar and is the author of three books:
1. Trillions: A Primer on Federal Spending, Taxes, the U.S. Debt Ceiling, and Fiscal Law. Click here to purchase. The 2026-2027 edition will be released this fall on Amazon.
2. Independent Voters will Decide America’s Future in 2024 and Beyond (2024)
3. America’s Priorities: How the U.S. Government Raises and Spends Trillions (2008)
Charles S. Konigsberg is President of Capitol Public Policy LLC, which provides consulting services on budget reconciliation, appropriations, government shutdowns, the debt limit, mandatory spending, tax expenditures, as well as budget process training. Contact us at ckonigsberg@capitolpublicpolicy.com or (301) 509-5688.
Hard to keep with the head-spinning events, but thank goodness you're on top of it all. Thx Chuck