Congress Mulls Spending Cuts

The House and Senate return to Washington this week to continue their deliberations of President Trump’s recissions and reconciliation priorities.

The recissions process is separate from reconciliation both in form and frequency. Congress uses recission on a rare basis to codify certain spending cuts made by the Administration – in this case, a $9 billion package largely addressing foreign aid.

On the other hand, the reconciliation package allows lawmakers to bypass the Senate’s filibuster rules to pass various budgetary measures advancing the President’s priorities – typically when Congress and the White House are of the same party. This current reconciliation bill would cut various Biden-era climate priorities while codifying certain tax extenders and immigration policies.

In addition to those items, the House will also take up several bills concerning the District of Columbia’s police department and voting rules. Other legislation moving through expedited procedures deals with the maritime sector along with Amtrak operations.

Meanwhile, both Chambers will hold important committee hearings this week, including the following:

The House and Senate Appropriations Committees will consider the FY26 budget requests for the Departments of Defense, Homeland Security, Housing & Urban Development

The Senate Small Business Committee will examine the SBA’s disaster loan program

The House Energy & Commerce Committee will consider the Energy Department’s FY26 budget request

The Senate Finance Committee will examine the Treasury Department’s FY26 budget request as well as other tax proposals