What’s Left on Washington’s Agenda Before the Clock Runs Out?

Congress has been racing against the clock to check off as many items on its legislative to-do list as possible ahead of the August recess. Most notably, President Trump has led congressional Republicans in advancing a major budget reconciliation package, the One Big Beautiful Bill, which proposes sweeping changes to tax policy, healthcare, energy production, immigration enforcement, and national defense. In addition, Congress recently finalized the President’s rescissions package, clawing back more than $9 billion in previously approved funding. To push these priorities forward on a partisan basis, Republican leadership in the 119th Congress has deprioritized other major items, including presidential nominations, the Farm Bill, and the annual appropriations process. Looking ahead, the President faces a narrowing window before the end of the fiscal year in September, the August recess, and the launch of the 2026 midterm election cycle. With a packed agenda, let’s unpack what remains, both essential and aspirational.

It’s worth noting that while Democrats in the minority may be vocal and forceful in their opposition, the appetite for grinding government to a halt appears limited. There remains a shared bipartisan interest in keeping the government functioning and with the 2026 midterms on the horizon, inaction carries political risk. Voters tend to punish gridlock, and lawmakers seen as contributing to dysfunction often find themselves out of a job.

FY2026 Appropriations

Congress’ chronic failure to adhere to its own appropriations process is nothing new. In the nearly five decades since the current budget system was established, lawmakers have passed all required appropriations bills on time in just four fiscal years: 1977 (the first year under the new system), 1989, 1995, and 1997. 2025 is shaping up to be no different than years past; expect another continuing resolution to keep the government funded beyond October 1 and stave off a shutdown.

Here’s where it gets tricky: last week’s rescissions bill, which clawed back over $9 billion in funding previously approved by Congress, has poisoned the well with lawmakers who might otherwise support bipartisan appropriations, a necessity given the 60-vote threshold in the Senate.

“It is absurd to expect Democrats to play along with funding the government if Republicans are just going to renege on a bipartisan agreement by concocting rescissions packages behind closed doors that can pass with only their votes, not the customary 60 votes required in the appropriation process,” Senate Minority Leader Chuck Schumer (D-NY) said last week.

In other words, should we expect another continuing resolution or brace for a government shutdown?

Schumer’s praise for the appropriations process rings somewhat hollow, given his own record as Majority Leader favoring year-end omnibus packages over regular order. Still, he raises a valid concern: President Trump and congressional Republicans are reinforcing a trend that shifts spending power away from Congress, particularly the Senate, and into the hands of the executive branch. That shift is already accelerating. White House OMB Director Russ Vought confirmed last week that the White House is preparing yet another rescissions package, a move likely to inflame partisan tensions at a moment when bipartisan cooperation is essential to passing any appropriations deal.

In terms of a specific appropriations update, see below:

The Farm Bill

The reconciliation bill, dubbed the One Big Beautiful Bill, made significant cuts to the Supplemental Nutrition Assistance Program (SNAP) and other key nutrition programs typically addressed in the Farm Bill. The reaction from Democrats has mirrored their response to the recent rescissions package: if major priorities are being slashed unilaterally and in a partisan manner, where’s the incentive to negotiate a new Farm Bill in good faith?

House Ag Committee Ranking Member Rep. Angie Craig (D-Minn.) cast doubt on Democratic support for Farm Bill 2.0 this fall, citing Republican-led cuts to SNAP to fund farm subsidies. “If Republicans gut the nutrition title, it’s going to be impossible to get 100 to 150 Democrats,” Craig said at a recent policy event, warning the move has fractured the bipartisan coalition needed to pass farm bills.

While some Democrats remain open to talks, none have committed to backing the bill ahead of the current law’s September expiration. Craig and others caution that Republican tactics are straining cooperation more than leaders in Congress or the White House may realize.

House Ag Chair Glenn “GT” Thompson (R-Pa.) plans to release bill text and hold a markup after the August recess, but deep divisions persist and passage remains uncertain.

Permitting Reform

One legislative priority that has managed to endure the turbulence of partisan gridlock across several previous congresses is the shared bipartisan interest in permitting reform. That consensus is reflected in the Permit Act (H.R. 3898). The bill has advanced through the House Committee on Transportation and Infrastructure and its Subcommittee on Economic Development, Public Buildings, and Emergency Management, and has been ordered to be reported favorably.

The Permit Act proposes targeted amendments to the Federal Water Pollution Control Act, specifically to streamline the permitting process by narrowing the definition of “navigable waters” under the Clean Water Act. The bill would exclude from federal jurisdiction: waste treatment systems (including treatment ponds and lagoons), ephemeral features that flow only in direct response to precipitation, prior converted cropland, groundwater, and any other features the U.S. Army Corps of Engineers determines should be excluded. Supporters argue these reforms are necessary to reduce regulatory uncertainty and improve efficiency for developers, landowners, and state and local governments navigating federal permitting requirements.

The Permit Act is part of a broader suite of House Republican legislation aimed at improving the permitting landscape. The Improving Water Quality Certifications and American Energy Infrastructure Act (H.R. 3928) reforms Section 401 of the Clean Water Act to ensure that state water quality certifications are limited strictly to water quality impacts—addressing concerns that the certification process has been used to delay or block critical infrastructure and energy projects. The Reducing Regulatory Burdens Act (H.R. 3824) eliminates duplicative EPA regulatory requirements for pesticide applications already regulated under other federal statutes, while maintaining public health and environmental safeguards. Meanwhile, the Nationwide Permitting Improvement Act (H.R. 3927) codifies longstanding interpretations of the Nationwide Permit (NWP) process, providing clarity and legal certainty amid increasing litigation and challenges to the program.

Together, these bills represent a coordinated effort to modernize and simplify the permitting process, with the goal of accelerating infrastructure development and economic growth while maintaining essential environmental protections.

National Defense Authorization Act (NDAA)

As of mid-July 2025, both chambers of Congress have made progress on the Fiscal Year 2026 National Defense Authorization Act (NDAA), though the legislation remains in process. On July 9, the Senate Armed Services Committee advanced its version of the NDAA in a bipartisan 26-1 vote. The Senate bill authorizes $925 billion in national defense funding, including $878.7 billion for the Department of Defense and $35.2 billion for the Department of Energy. Notably, it boosts military aid to Ukraine from $300 million to $500 million and extends that support through 2028. It also includes provisions to preserve at least 103 A-10 aircraft from retirement and invests heavily in emerging technologies such as artificial intelligence and hypersonic weapons.

In the House, the Armed Services Committee advanced its NDAA version on July 16 with a 55–2 vote. The House version places particular emphasis on enhancing commercial satellite capabilities and missile defense systems, including support for Israel’s "Iron Dome."

Next, both the House and Senate will need to bring their respective NDAA bills to the floor for full chamber debate and passage. Once each chamber approves its version, a conference committee will be tasked with reconciling the differences, such as the disparity in Ukraine aid levels, before sending a unified bill to the president for signature. Key policy debates remain, but Congress appears on track to advance the NDAA through regular order before the end of 2025.

Federal Reserve

In recent days, tensions have escalated between President Trump and Federal Reserve Chair Jerome Powell, with Trump signaling potential efforts to remove Powell from his post. This is certainly a move that would spark significant legal, economic, and political fallout. Any attempt to fire Powell would face serious legal obstacles, as Federal Reserve chairs are protected under the Federal Reserve Act and court precedents that limit presidential authority to remove independent agency heads without cause. Financial markets are already jittery over the mere suggestion, with experts warning that such a disruption could erode investor confidence, destabilize monetary policy, and rattle bond and currency markets.

President Trump’s frustration stems from Powell’s refusal to aggressively cut interest rates amid rising inflation and tariffs, as well as criticism over an allegedly costly $2.5 billion renovation of the Fed’s headquarters. Powell has defended the renovation project in a formal letter, citing compliance with historic preservation requirements and legal appropriations procedures, rejecting allegations of impropriety by Trump allies, such as budget hawk Russ Vought of the White House OMB.

Collectively, these developments underscore a growing clash over the independence of the Federal Reserve. Powell has pushed back against political interference, while Trump and his allies appear intent on asserting executive pressure on monetary policy. Experts warn that even an unsuccessful attempt to oust Powell could undermine institutional stability, damage the credibility of U.S. financial governance, and inject unnecessary volatility into already fragile markets.

It is legally possible that Treasury Secretary Bessent could occupy both positions eventually, as there is no law preventing the Treasury Secretary from also serving as the chair of the Federal Reserve. Bessent recently suggested Powell should step down as Fed governor once his term as chair ends in May 2026, ahead of his term as governor ending in January 2028, a move Bessent said would remove speculation Powell could serve as a “shadow Fed chair” and continue influencing monetary policy.

What's Next

As Congress barrels toward the August recess and the end of the fiscal year, the clock is ticking on several unresolved priorities. While Republicans have made headway on partisan initiatives, most notably the sweeping budget reconciliation package and a sizable rescissions bill, the path forward for must-pass legislation like appropriations and the Farm Bill remains uncertain. The partisan approach to fiscal policy has strained bipartisan trust, especially in the Senate, where cross-party cooperation is essential. Meanwhile, more consensus-driven efforts, such as the NDAA and permitting reform, appear to be progressing under regular order, offering rare signs of institutional functionality amid broader dysfunction.

Still, the mounting friction between Congress and the executive branch, whether over appropriations authority, Fed independence, or long-term fiscal governance, highlights the fragile state of norms. With the 2026 midterms looming and a thin legislative runway ahead, both parties face growing pressure to choose between partisan brinkmanship and pragmatic dealmaking. Whether lawmakers can pivot from campaign posturing to policymaking will determine not just what gets done before September 30, but how voters judge Washington’s effectiveness in an era of divided trust and accelerating deadlines.