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CALENDAR UPDATE: The House will be in session for only 1 week prior to the midterm elections (week of Sept. 14). The Senate is currently scheduled to be in session Sept. 14 through October 2, although that could change with the early departure of the House and the Senate majority at stake
(1) CONGRESS ENACTED STOPGAP FUNDING, AVERTING OCT. 1 SHUTDOWN.
LAST WEEK THE HOUSE AGREED TO A SENATE-PASSED CR: The House reconvened last week and approved 370-48 the Senate-passed 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 Office of Management and Budget (OMB) proposed rule that would give political appointees veto authority over federal grants (section 157 of the CR).
PRESIDENTIAL ACTION: President Trump signed the measure last Wednesday, becoming P.L. 119-103.
(2) TRUMP’S IRAN WAR – Day 193:
Escalation: Iran and the U.S. traded attacks as the six-month conflict escalates; over the weekend, the U.S. struck three Iranian oil tankers after an Iranian attack on American naval ships.
Strait of Hormuz: Iran said a deal with Oman to manage shipping through the Strait of Hormuz is imminent, which could tighten Tehran’s control over the waterway.
Iranian Confidence Grows: New intelligence reports have assessed that Iran now has a better understanding of its capabilities and the limits of U.S. power.
Russian and Chinese Involvement: China’s Xi urges new Middle East security framework during Egypt visit; and Russia secretly helps Iran develop supersonic cruise missiles.
Covering up Diminished Stocks of Munitions: NYTimes reports, about 50 people were given polygraph tests, an unparalleled inquiry that comes in the wake of news reports about… the U.S. military’s diminished stocks of munitions.
In Denial: ‘I wouldn’t call it a war,’ Vance says after Iran hostilities flare.
(3) MAJOR ECONOMIC, TRADE, TAX, and “AI” NEWS
Jobs Growth and Interest Rates: Hiring burst of 162,000 jobs in August puts the focus squarely back on inflation in the US and whether the Fed will increase rates at next week’s FOMC meeting.
Despite inflation, Trump Attempts to Force The FED to Lower Rates: President Donald Trump threatened on Friday to prevent the US from trading with many nations unless the Federal Reserve lowers interest rates; Warsh faces a no-win situation.
Bond Market Volatility: Reuters reported that global bonds extended a rout that is raising borrowing costs to multi-decade highs; Wall Street Journal says there are four forces pressuring bonds: war Is No. 1, fiscal worries about government debt, a new Federal Reserve chairman and…the flood of AI bonds; Rockefeller Chair says if long-term interest rates decisively breach the 5% threshold, the impact could derail the AI boom; and AP explains why rising bond yields impact mortgage rates, auto loans, government borrowing, and business borrowing.
Mortgage Rates Up: Higher costs for home loans have put a squeeze on the housing market, adding pressure to consumers already struggling with elevated inflation.
Diesel Prices Hit All-time High: Diesel prices hit all-time high as Trump administration brandishes energy policies.
Tik Tok “Experiment” Withholding Safety Feature: Bloomberg Businessweek made public a confidential report Tik Tok prepared in 2023 about the death by suicide of 16-year-old Chase Nasca.
Un-learning the Lessons of the Fiscal Crisis: US bank regulators aim to narrow their enforcement focus to financial risks—part of a wider deregulatory push under the Trump administration.
Integrity of U.S. Economic Data: The quiet storm threatening Washington data.
Wealth Gap Widens: US corporate profits surge to record as worker payouts wilt.
Artificial Intelligence:
Anthropic Nears Finalizing $15 Billion Pre-IPO Credit Facility
Why the “Hugging Face” hack should make you worry more about AI
Trump Says ‘Let Data Reign’ in response to data center political blowback
Research shows job postings in Texas have dropped for AI-exposed occupations and
ChatGPT faces tougher rules under the EU online safety regime.
Trump’s Beef Import Deal: White House defends Trump’s beef import plan after report on billionaire’s influence.
(4) HEALTH
Autism News – Fact Check: Numerous outlets reported “Federal Panel Adopts Overhauled Autism Plans,” calling for doubling of funding. The reality: the Interagency Autism Coordinating Committee has no authority over federal funding; the administration last year enacted large cuts to Medicaid which is the largest funder of disability-related long-term care and support programs; the President’s budget office has proposed cutting Section 811 Supportive Housing for Persons with Disabilities by about 7% and Project-Based Rental Assistance, which serves many low-income disabled tenants, by $903 million.
Medicaid Rules Could Cut Hundreds of Billions: Hospitals say coming Trump administration rules are worse than last year’s megabill Medicaid cuts.
Ebola Update: the DRC (Democratic Republic of Congo) outbreak crossed the 3,000-death threshold and continues to spread faster than under-resourced containment efforts; however, the separate outbreak in Uganda was declared over after containment measures succeeded.
DOJ Investigation of Scientists: While Dr. Fauci has faced public scrutiny from congressional Republicans, the D.O.J. has pursued a quieter and more expansive effort against a wider circle of researchers.
War Dept. Given Access to NIH Medical Research Funds: War Dept. signed an interagency agreement that could give the Department access to billions of dollars Congress provided to the National Institutes of Health for biomedical research.
Fallout from Anti-Vaccine Ideology: Erica Schwartz is failing her first test as CDC head.
(5) POLITICAL, LEGAL, AND ELECTION NEWS
Trump Push to Suppress Mail-in Voting: On Friday, a federal judge extended a block on Trump executive order seeking to limit mail voting in the midterms; the Trump Administration again asked the Supreme Court to allow the mail voting restrictions, putting the legality of the proposed mail voting limits squarely before the justices—even as states begin sending out ballots.
Whistle-blower says Trump officials are defying court orders on voting by mail and the USPS Inspector General opens investigation.
Trump’s mail voting change would shape these key races: Michigan, Arizona, California, Maine, Pennsylvania, Florida and could disproportionately impact Democrats.
Some congressional Democrats and voting-rights advocates are taking seriously President Donald Trump’s unwillingness to rule out a national emergency declaration around November’s midterm elections.
Supreme Court sides with Republicans in TV ad litigation.
Judges at Risk: Dozens of federal judges describe intensifying threats in new report.
Trump Construction: Trump’s giant arch in front of Arlington National Cemetery may break ground without final approval, but veterans are trying to stop it; and the Supreme Court allows Trump’s White House ballroom construction to proceed.
Birthright Citizenship: federal judge block’s Trump’s newest order attempting to limit birthright citizenship.
SCOTUS Reform: Democrats sink Republican bid to cap Supreme Court at nine justices.
(6) OTHER KEY U.S. DEVELOPMENTS
Hegseth Weakening the U.S. Military: The secretary of war has now fired or prevented the promotion of at least 80 generals and admirals—about 10% of America’s military leaders.
Child Care and Head Start: The Trump administration is moving to allow married couples with a stay-at-home spouse to collect child care subsidies… intended to assist working parents; and the administration is moving to weaken Head Start—a program that helps America’s poorest kids.
Environment: US judge bars EPA effort to send California vehicle emissions rules to Congress for review.
Disabilities: America’s support system for disabled students is broken, with unfunded federal mandates crushing states and school districts; and the Department of Housing and Urban Development published guidance Monday shortening the window for disabled tenants to bring discrimination complaints against builders and landlords for inaccessibility.
Trump Deportations: ICE skipped basic checks in their rush for recruits, a whistle-blower says; and DOJ says states are at risk of losing billions in funding if they don’t report all illegals.
Veterans Benefits: Military widows’ future is stuck in a partisan brawl over veterans benefits.
(7) OTHER KEY GLOBAL DEVELOPMENTS
Taiwan Vulnerable and China Empowered with US Tied Down in Mideast: China is putting unprecedented pressure on Taiwan, using maritime patrols on its Pacific coast that could effectively choke off the island from allies; a Summit With Russia, India and Iran Shows the Leverage the Iran and Ukraine Wars Have Given Xi of China; and U.S. and China arm for space warfare.
Tactical Nukes are a Gateway Drug to Armageddon: The US is tweaking its nuclear strategy, contemplating a bigger role for tactical nukes, in a potential war against China (an increasing risk while U.S. conventional forces in the Pacific are depleted).
Far Right Win in Germany: The Alternative for Germany, or AfD, trounced its rivals but was left unsure if it will be able to govern in Saxony-Anhalt. The result shocked Germany.
Russian Sabotage in Europe: Russian sabotage in Europe is a fight that can spiral out of control; and America’s absence is inviting the war Europe most fears.
Ukraine’s Challenges: Trump said he will ask Europe to pay the U.S. back for munitions given to Ukraine; Russia’s jet-powered drones are overwhelming Ukraine’s air defenses; Belgium continues to block use of frozen Russian assets to aid Ukraine; Zelenskyy warned airlines to avoid Russian airspace; and Polish solidarity with Ukraine is “in ruins.”
Trump’s Venezuela “Deal” Won’t Lower Gas Prices Anytime Soon: How the U.S. is taking direct control of Venezuelan oil; why the “deal” looks like it’s built on quicksand; why it won’t lower gas prices anytime soon; and why it is the most striking example yet of Trump’s new state capitalism.
Greenland: Denmark sends conscripts to Greenland as Arctic tensions grow.
(8) OTHER READS THAT MAY BE OF INTEREST
9/11: I worked at Ground Zero; this question still haunts me (McArdle); and Twenty-five Years After: What Have We Learned, and Forgotten? (Fallows)
Trump bullying US allies: weakens deterrence and increases the risk of war.
Congress doesn’t need more party discipline. It needs less. (Pearlstein)
Nepal’s catastrophic flood: heralds a new age of disasters shocking even climate scientists.
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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 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 2026-2027 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)
Charles S. Konigsberg is President of Capitol Public Policy LLC, which provides consulting services on fiscal intelligence, budget reconciliation, appropriations, government shutdowns, the debt limit, mandatory spending, tax expenditures, and training on the congressional budget process. Contact us at ckonigsberg@capitolpublicpolicy.com or (301) 509-5688.
Another "quiet" week in the news huh? So glad you're doing this