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Trillions National Weekly © is a publication of Capitol Public Policy LLC, which provides: fiscal intelligence; research and consulting services on appropriations, entitlements, budget reconciliation, and the debt limit; and budget process training. Contact us at ckonigsberg@capitolpublicpolicy.com or (301) 509-5688.
CALENDAR UPDATE: The House has recessed until after the election; the Senate may depart the end of this week; President Xi arrives in DC on Wednesday; and the U.N. General Assembly is meeting this week in NYC.
(1) FISCAL NEWS:
More Trump Impoundments:
See below under global news: Senate Dems warn administration plans to impound or redirect over $3 billion in foreign aid.
Post-Election Republican Reconciliation Bill?
Senate conservatives are laying the groundwork for substantial cuts to federal spending in the postelection, lame-duck Congress to offset billions in new defense spending, including funding for the war in Iran—if the House and Senate flip in the midterm elections with Democrats taking over in January.
FY 2027 Appropriations:
In case you missed previous editions of TrillionsWeekly.com, Congress enacted a continuing resolution (“CR”) (HR 6500) providing funding through December 11, 2026—averting an October 1 shutdown when fiscal year 2027 begins. (The stopgap was necessary because Congress has passed none of the 12 FY 2027 appropriation bills.) The CR includes a temporary bar through December 11 on implementation of an OMB proposed rule to give political appointees veto authority over federal grants (but see below, under health news, the Administration’s move to take control of NIH health grants).
(2) TRUMP’S IRAN WAR – Day 207:
UNITED NATIONS SPEECH: Trump threatens to “annihilate” Iran and defends handling of global conflicts. See CNN’s Fact Check of Trump’s claims in his UN speech.
HOUSE CALLED FOR WAR’S END, AGAIN: Last week the House voted for a third time (220-204) to end the Iran war—but used a nonbinding resolution rather than cutting off funding.
ESCALATION - ATTACK ON SAUDI CAPITAL: In a significant escalation, Houthis—the Iranian backed militia in Yemen—attacked the Saudi capital firing a wave of missiles and drones at Riyadh and Saudi oil facilities.
SENATORS DEMAND DETAILS FROM HEGSETH: 46 Democrats sent a letter to the Secretary of Defense last week “regarding the Department of Defense’s failure to provide the American people with basic information about the war with Iran and its cost to taxpayers, even as the human costs of this war rise.”
(3) ARTIFICAL INTELLIGENCE (“A.I.”):
AGENCIES WITH AUTHORITY OVER A.I.: (T)here are already institutions aimed at overseeing artificial intelligence issues. United States Cyber Command is actively experimenting with frontier models, including Anthropic’s powerful Mythos, to find vulnerabilities in adversary computer networks, making them more ripe for attack. It is also trying to help patch previously undiscovered vulnerabilities in critical U.S. infrastructure systems. That is also the task of the Cybersecurity and Infrastructure Security Agency, part of the Department of Homeland Security. But its personnel has been gutted since Mr. Trump came to office, in part because of the agency’s role in declaring that the 2020 presidential election was among the best-run in modern times. Rather than properly staffing and funding these two agencies, Trump is proposing a new “A.I. Force,” while continuing to dismiss worries about A.I’s pace or potential for harm.
A.I. RISKS CONTINUE TO OCCUPY CENTER STAGE: The rise of A.I. Is raising threats from drones, police group warns; At the Pentagon, as artificial intelligence makes it easier for adversaries to launch disruptive attacks, the Defense Department has seen a tenfold increase in vulnerabilities susceptible to hacks; Google’s Gemini AI hacked into other companies, adding to ‘rogue’ AI incidents; and OpenAI’s rogue agents probed Hugging Face for weaknesses two months before major hack.
WOLF GUARDING THE HEN HOUSE: Anthropic picks consulting firm to monitor AI safety and pledges to spend $1 billion. The artificial intelligence company selected the firm to provide oversight for its products.
(4) MAJOR ECONOMIC, FED, TRADE, TAX NEWS:
FED’s RATE HIKE: Here’s what last week’s quarter point Fed rate hike means for your mortgage, car loan and credit cards.
INFLATION – FUEL PRICES: Gas prices are about to take a big jump, analysts say, with the worst still to come; and Politico reports Trump is facing growing calls from his Republican allies in farm states to restrict exports of diesel as prices soar — a move staunchly opposed by the U.S. oil and gas producers.
Axios reported Tuesday that Trump has decided to back a ban on diesel exports.
DATA CENTERS AND ENERGY COSTS: The House approved a bill last Wednesday requiring state regulators to consider a federal standard under which utilities charge data centers for the full cost of their new power and transmission upgrades. The Senate has not acted on the bill.
BOND MARKETS: Foreign holdings of US Treasuries fell to nine-month low in July; the 10-year US Treasury yield rose to the highest in almost two decades last week, driven by booming capital investment and soaring energy prices that are exacerbating inflation.
(5) HEALTH NEWS:
OBAMACARE CUTS: Trump Officials eject 750,000 from Obamacare markets, claiming fraud. Vice President Vance claimed the measure would save the government $2.2 billion.
WHITE HOUSE MOVES TO TAKE CONTROL OF N.I.H. GRANTS: Federal officials are drafting an executive order that would place grants under review by an outside panel, the latest effort to redirect billions of dollars in research spending. Both Republican and Democratic Senators object.
TRUMP’S SECRET DEALS WITH PHARMA COMPANIES: Secret contracts reveal undisclosed terms in Trump’s drug-pricing deals. Agreements with Pfizer and Eli Lilly include tariff protections, overseas pricing inducements, and broad confidentiality clauses. This reflects the inherently corrupting influence of tariffs at the whim of a President and why the Founders gave Congress authority over levying tariffs.
AMERICANS FACE STEEPER HEALTH COSTS THAN OTHER ADVANCED NATIONS: Compared to people in many other high-income nations, Americans are the most likely to have problems paying for their medical care… Millions in the U.S. currently lack health insurance, and millions more are expected to lose their coverage… Even for insured Americans, high out-of-pocket costs and plan deductibles can make health care difficult to afford… For many, the fear of incurring high bills is a deterrent to getting needed medical care.
WILL PROTECTION FROM SURPRISE BILLS LEAD TO HIGHER PREMIUMS? Some of America’s biggest companies say a law aimed at protecting patients is about to hurt them instead.
EBOLA OUTBREAK: The World Health Organization said last week, “we have many, many months ahead of us…. This is far from over.” More than 3,000 healthcare and frontline workers have been vaccinated with Merck’s Ervebo vaccine… but its effectiveness against the Bundibugyo virus driving the current outbreak is not known.
(6) POLITICAL, LEGAL, ETHICS, AND ELECTION NEWS:
TRUMP BANS CNN, MS-NOW, POLITICO FROM WHITE HOUSE: Trump faced loss after loss. He then turned to a familiar target: the Press. On Monday, CNN, MS-NOW, and Politico responded by suing Trump calling the selective ban – based on the content of their coverage – a blatant violation of the First Amendment; other networks, in solidarity, have halted video coverage of Trump.
PUSHING BACK ON FEDERAL INTERFERENCE IN ELECTIONS: Gov. Newsom of California signed legislation that would make it illegal to interfere with ballots or election records in response to efforts by the president to restrict voting; and Civil rights groups sued to keep armed agents away from voting sites.
RUSSIAN ELECTION INTERFERENCE, AGAIN: The Kremlin is once again seeking to undermine confidence in American democracy with online influence campaigns, U.S. officials said.
ATTORNEY GENERAL SHREDS ANOTHER NORM AT DOJ: AG Blanche’s political campaigning breaks an ethical norm going back to Watergate. The attorney general’s campaign politicking for Republicans adds to the degradation of post-Watergate values at the Justice Department.
A STUNNING CONFLICT OF INTEREST: Trump and sons invest heavily in the AI economy as he resists calls for an AI slowdown. Trump’s decisions as president on one of the most consequential policy debates of his administration could affect the value of his personal investments.
MONTANA VOTERS TO ADDRESS CORPORATE MONEY IN ELECTIONS: Deep in Trump country, a revolt against corporate money.
(7) OTHER KEY U.S. DEVELOPMENTS:
TRUMP’S MASS DEPORTATION CAMPAIGN: How Trump turned a refugee bureau into a $410 million deportation operation; Man shot by ICE says he was put in detention with bullet lodged near spine; and A central African hotel has become a nightmare prison for U.S. deportees--witnesses say men were hooded and beaten in Equatorial Guinea. The autocratic government there is a partner in President Trump’s deportation program.
CHILD CARE FUNDS: White House plan to subsidize stay-at-home parents divides conservatives.
BREAKING THE KENNEDY CENTER: Last Tuesday, the Kennedy Center closed its doors after a judge ruled he couldn’t put his name on it; fencing went up on Wednesday; on Thursday, Trump was seen looking at a rendering of Kennedy Center “demolished”; also on Thursday, a judge said Trump has to give 30 days’ notice before demolition; on Friday, layoffs began and thousands rallied outside the Center chanting “Hands off!” More on the inside story.
ATTACKING THE SMITHSONIAN: Trump administration moving ahead with signs outside Smithsonian museum. Interior Secretary Doug Burgum said about a dozen signs would be installed outside the National Museum of American History warning of curators’ “personal viewpoints.”
BUILDING TRUMP’S ARCH: Here we go again - Trump is trying to claim a “national security” justification for his 250-foot arch blocking Arlington National Cemetery (the same phony justification he used for knocking down the East Wing of the White House without authorization). The president’s post about the 250-foot arch planned near Arlington National Cemetery comes as veterans’ groups, historic preservationists and others attempt to stop the project.
(8) OTHER KEY GLOBAL DEVELOPMENTS:
PRESIDENT XI’s STATE VISIT THIS WEEK: One issue that could upend fragile U.S.-China Ties: Taiwan arms. As Beijing presses President Trump to freeze a proposed $14 billion weapons sale to the island, Taiwan is trying to show that its security is in U.S. interests. Another big issue: mutual dangers posed by artificial intelligence.
TRUMP CLAIMS GREENLAND SUCCESS: Trump says two new US bases are coming to Greenland as deal signed. However, the U.S. ability to base forces, fly over Greenland, and build or operate military facilities was already available under a 1951 U.S.-Denmark defense agreement.
RUSSIAN PROVOCATIONS AGAINST NATO CONTINUE: String of daring Russian plots is testing Washington’s restraint. A strike on a train that imperiled former European leaders and CIA officers is among a spate of attacks that risked a dangerous escalation with the West.
SENATE DEMS WARN ADMINISTRATION PLANS TO IMPOUND OR REDIRECT OVER $3 BILLION IN FOREIGN AID including funds to combat the international illicit narcotics trade, human trafficking, and other international crimes; counter Russia with U.S. assistance in Europe and Eurasia; and invest in secure supply chains and American competitiveness through economic growth programs; the plan would also redirect funds appropriated for global health programs and development assistance to pay for “USAID closeout costs.”
TRUMP’S BREAK WITH CANADA LEADS TO CANADA-EU PARTNERSHIP: Last week, the European Union proposed Canada becomes its first “Associate Member.” Bloomberg explains this would give Canada “the ability to sell goods and services and move capital into the EU without encountering many tariffs or other trade barriers.”
F-35 SALES TO SAUDI ARABIA IGNORE INTELLIGENCE WARNINGS: Trump moves ahead with F-35 Jet sales to Saudi Arabia despite… intelligence agencies hav(ing) warned in internal reports that China could acquire or steal the U.S. warplane technology.
WEAPONS IN SPACE: The US military said it has deployed weapons in space. Here is what that could mean.
(9) OTHER READS THAT MAY BE OF INTEREST:
What a Trump order to put political appointees in charge of NIH funding would mean for science – Scientific American
The coming Republican revolt against tariffs. – Former GOP Sen. Phil Gramm
Visit our digital library of fiscal and 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 (Matthew Bender, 2024). Click here to purchase. The 2026-27 edition will be released this fall on Amazon.
2. Independent Voters will Decide America’s Future in 2024 and Beyond
3. America’s Priorities: How the U.S. Government Raises and Spends Trillions (2008)