Finding the daily stream of chaotic news difficult to keep up with? Get a 10-minute weekly nonpartisan update of key developments with a free subscription to Trillions National Weekly.
Prefer to listen to the audio version of this newsletter? Download the free Substack app (available on IOS and ANDROID).
Want a chronology of key stories by topic? Visit TrillionsWeekly.com.
CALENDAR UPDATE: The House has returned for a rare pre-labor day session this week.
(1) HOUSE TO VOTE TUESDAY ON CR to AVERT GOVERNMENT SHUTDOWN
Tues, Sept. 1, 2026 Update: House passed the CR (HR 6500) 370-48.
NEW FISCAL YEAR BEGINS OCTOBER 1st BUT GOVERNMENT ISN’T FUNDED YET. Since none of the 12 regular appropriation bills for FY 2027 (which begins October 1st) have been enacted, Congress needs to enact a stopgap “continuing resolution (CR)” to avoid a government shutdown.
SENATE ACTION: On Saturday, August 8, 2026, the Senate passed 90-6 a continuing resolution (HR 6500) to continue funding the government on October 1, 2026 at current FY 2026 levels (with a few adjustments called “anomalies”). The stopgap funding would continue through December 11, 2026.
HOUSE ACTION: On July 21, 2026, the House passed its own CR (HR 9770) to continue funding through December 4, 2026, with nearly all Democrats opposing the bill because there was no bipartisan negotiation and it did not address a Trump Administration proposal to put all federal grant decisions in the hands of political appointees.
MAJOR DIFFERENCES BETWEEN THE 2 BILLS: The Senate-passed CR contains two rebukes of Administration policy not included in the House CR: (1) A temporary bar 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 (2) a bar on transferring additional funding to Customs and Border Protection.”
HOUSE TO VOTE TUESDAY SEPT. 1 ON SENATE-PASSED CR: The House reconvened today and plans to vote tomorrow (Tuesday) on the Senate-passed CR to avert an October 1 shutdown by providing funding through December 11, 2026, and temporarily block the Trump-proposed rule giving political appointees veto authority over federal grants. The CR will be considered under “suspension of the House rules” which means a 2/3 vote is required for passage. The Administration has endorsed the Senate CR and it is expected to pass.
(2) BUDGET RECONCILIATION FOR WAR FUNDING, FARM AID, AND VOTER-ID GRANTS NOT EXPECTED BEFORE NOVEMBER ELECTION:
After using the filibuster proof budget reconciliation process to pass President Trump’s tax cuts last July and deportation funding this June, the House attempted to launch a 3rd reconciliation bill in July to provide Iran war funding, farm aid, and voter-ID grants to states. The House initiated the process with passage of a budget resolution July 22, 2026.
However, that process ground to a halt in the Senate with “competing demands from defense hawks, fiscal conservatives and some GOP senators who aren’t convinced another such bill is needed at all.” Politico reports, “Senate Republicans don’t expect the budget measure to be brought to the floor before the election, according to five people granted anonymity to disclose private discussions.”
(3) TRUMP’S IRAN WAR – Day 185:
IRAN ENGAGEMENT WEAKENING U.S. CAPABILITIES IN EUROPE AND PACIFIC: Military leaders warned Hegseth against extending Iran war operations. A recent classified assessment advised that prolonged large-scale operations in the Middle East risk weakening U.S. capabilities elsewhere; and Putin sees U.S. as weakened by Iran war.
HAVING FAILED MILITARILY, TRUMP RETREATS TO ECONOMIC SANCTIONS but the U.S. has spent 20 years promising ‘crippling sanctions’ on Iran.
SENATE ARMED SERVICES RANKING MEMBER DEMANDS ACCOUNTABILITY: The President has waged this war without public support or congressional consent, and it is far past time for accountability.
(4) MAJOR ECONOMIC, TRADE, AND “AI” NEWS
FEDERAL RESERVE: Investors are expecting higher rates after Fed Chairman Warsh said inflation isn’t slowing and vowed to reach the Fed’s 2% target.
G20 FINANCE MEETING THIS WEEK: Treasury Secretary Scott Bessent will be trying to reassure his foreign counterparts that the U.S. can manage its massive debt without risking the global financial system.
INFLATION: remains elevated as energy costs push up prices; and the price of diesel fuel, the “workhorse” of fuels nears a record high.
CONSUMER SENTIMENT: continued to fall in August according to the University of Michigan.
IMMIGRATION AND VISA RESTRICTIONS HIT THE ECONOMY: Trump visa restrictions will worsen strains on the economy, experts say.
TRUMP’S TRADE WAR WITH CANADA: Google Maps changed Lake Ontario to Lake America, complying with Trump’s executive order; How the U.S.-Canada trade talks collapsed; After Trump imposed tariffs with the collapse of negotiations, Canada retaliated last week; and How the tariffs will hit the U.S. auto industry.
Background – how to understand Trump’s antipathy towards Canada: Trump’s approach to Canada is rooted in his transactional mindset and nostalgia for an era of economic nationalism and territorial expansion.
BILL GATES WARNS ARTIFICIAL INTELLIGENCE IS MORE DANGEROUS THAN BIG TECH ADMITS: In an essay, the Microsoft co-founder sounded the alarm about artificial intelligence’s risks to safety and security, jobs and children’s well-being; another report examines how A.I. is becoming so powerful, it’s stumping those trying to contain it; and another reports how a Russian drone guided entirely by an Nvidia chip killed three Ukrainians and asks whether that presages a dystopian future of weaponry untethered to humans.
A.I. DEBT: An editor at the Financial Times examines whether the A.I. debt binge could “sink the economy.”
DATA CENTERS: The intensifying late-summer political backlash against A.I. data centers is inspiring panic in the tech sector; and another headache for data centers is Trump’s tariffs.
META TO PAY UP TO $17.1 BILLION IN LANDMARK SETTLEMENT OVER SOCIAL MEDIA ADDICTION: The social media giant settled with 47 states, the District of Columbia and U.S. territories, and agreed to make major changes to its products over claims its platforms endangered children. Almost all U.S. states are using litigation to impose kids’ protections in the absence of congressional legislation.
CRYPTO BILL STALLED: Some House Republicans, including Majority Whip Tom Emmer, have been trying to build public pressure on the Senate to pass the crypto bill known as the Clarity Act for months. But a mid-September vote on that measure is likely to fail, reports Politico.
(5) HEALTH
EBOLA OUTBREAK IS WORST EVER; U.S. HAS DIMINISHED RESPONSE CAPACITY: AP reports Congo’s authorities said Monday that the fastest-growing Ebola outbreak in history has topped 6,000 cases with 2,911 deaths; and Bloomberg reports the Ebola epidemic in the Democratic Republic of Congo may be three times larger than official figures indicate. Unfortunately, the shutdown of USAID response infrastructure has hampered the U.S. response; the Office of Foreign Disaster Assistance was absorbed into a smaller State Department humanitarian bureau with most of its personnel removed.
NO MEAT INSPECTIONS? Trump suggests cattle ranchers could bypass USDA-inspected meat plants.
WEAKENING LIMITS ON PLASTIC: Leaked memo shows how U.S. aims to weaken global limits on plastic production.
(6) POLITICAL AND LEGAL NEWS
MAIL-IN VOTING RESTRICTIONS TEMPORARILY BARRED: Last Monday, the Supreme Court, on timing grounds (“ripeness”), allowed the Trump Administration to move forward with its order imposing restrictions on mail-in voting. On Wednesday, a coalition of states and voting rights groups filed new and supplemental complaints seeking to block the now-finalized regulations that would permit delivery of ballots only for voters on USPS-approved voter lists. On Thursday, a federal judge issued a 14-day temporary restraining order halting parts of the Postal Service rules. The outcome could impact many battleground elections.
SUPREME COURT ALLOWS TRUMP BALLROOM TO PROCEED: The Supreme Court is allowing President Donald Trump to press on with his White House ballroom project — over objection from Chief Justice John Roberts and the court’s liberal wing.
VENEZUELAN OIL: Expanding his unprecedented and legally dubious government involvement in the private sector, President Trump claimed last week to have “secured” a vast U.S. stake in the Venezuelan oil industry. The Trump Administration reportedly intervened in a Swiss criminal investigation to enable the deal.
ANTHROPIC RULING: Judge rules Administration’s blacklisting of Anthropic was illegal.
ETHICS ISSUES: Judge rejects Trump bid to challenge convictions; and $900 million from a Trump canceled wind deal will benefit a Trump donor.
(7) OTHER KEY U.S. DEVELOPMENTS
MORE CHAOS AT THE PENTAGON: Hegseth’s purge of top generals leaves the Army rudderless as it tries to adapt to drone warfare; and Pentagon installs military influencers in civilian roles to amplify culture war fights.
AGRICULTURE: Senate Agriculture Committee Chair Boozman says he will try again in September to advance a multiyear bill reauthorizing federal agriculture programs; and the New York Times reports that farmers are struggling to get basic services from a depleted Agriculture Department.
IRS AUDIT REVENUE HAS PLUMMETED UNDER TRUMP: The IRS. lost roughly a quarter of its employees since President Trump took office, hampering the agency’s ability to conduct audits.
(7) OTHER KEY GLOBAL DEVELOPMENTS
KOREA: Trump’s Kim gambit deepens doubts over US reliability at a key moment for Asia.
(8) OTHER READS THAT MAY BE OF INTEREST
How to respond constructively during these challenging times for our democracy:
(1) Support freedom of the press by subscribing to media organizations committed to objective fact-based reporting; and (2) support free and fair elections by volunteering to be a poll worker with your local board of elections this November. Your dollars and your time make a difference.
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: ckonigsberg@capitolpublicpolicy.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.