The Trump administration has backed away from the proposed $1.8 billion "anti-weaponization" fund that has complicated Senate votes on the Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) reconciliation bill. Majority Leader John Thune (R-SD) suggested the Senate will resume consideration of the bill soon, saying after the regular Tuesday party luncheons, "As we move forward on the Secure Borders Act this week, we intend to ensure that law enforcement, both ICE and CBP, have the resources they need to carry out the responsibilities that they are given by the American people." Votes in relation to the ICE/CBP bill could begin as soon as later today (Wednesday, June 3).

The "vote-a-rama" process of limitless amendment votes may still feature Democratic amendments related to the fund, which falls under the purview of the Senate Judiciary Committee that contributed to the reconciliation bill and can therefore be the subject of amendments that can pass by simple-majority vote. But, as a June 2 Semafor report noted, Republicans may no longer be under pressure to vote in favor of the amendments with the Administration not pursuing the fund.

In a June 1 Dear Colleague letter released prior to Acting Attorney General Todd Blanche's testimony at a House Appropriations subcommittee Tuesday saying DOJ was "not moving forward with the fund," Senate Democratic leader Chuck Schumer (D-NY) said, "This week, Senate Democrats will launch a coordinated effort to kill the slush fund before one cent goes out the door. And no matter what Republicans do, we will force them to vote."

While the Administration has retracted the anti-weaponization fund, the lawsuit settlement's other language shielding President Trump, his family and businesses from tax investigations remains in place. The New York Times said June 2 that while the Administration "has now taken the fund off the table, much political damage has already been done. In addition, the unusually favorable tax deal provides Democrats with a potentially potent line of attack in the midterm elections — that Republicans support shielding a billionaire president from tax penalties at a time when many Americans are struggling financially."

The ICE/CBP Reconciliation 2.0 bill was planned as a relatively fast exercise that could give way to a Reconciliation 3.0 bill with broader affordability proposals, possibly offset with provisions to combat waste, fraud and abuse in federal safety net programs. As House Budget Committee Chairman Jodey Arrington (R-TX) described in a May Punchbowl report, "I don't know of anything that will motivate and energize voters more right now than the affordability [provisions] paid for by the war on fraud." However, the follow-on effort perhaps wasn't helped by pushing past the June 1 deadline for the first bill, complicating it with the anti-weaponization issue, and the President's anti-incumbent position in some GOP primaries.

Still, Leader Thune projected confidence that Senate Republicans would support the current reconciliation bill, saying Tuesday, "notwithstanding what's happened in some of the primaries around the country, our Senators, our members are very committed to ensuring that the Republican Senate succeeds."

Politico Morning Tax June 2 reported Senate Finance Committee Chairman Mike Crapo (R-ID) as saying, similar to Arrington, that "he'd want a hypothetical third package to focus on tax policy and tamping down waste, fraud and abuse in entitlement programs." But he cautioned, "I don't want to create the impression that we are drafting or even putting together the pieces of the draft."

Trade — On June 2, the United States Trade Representative (USTR) determined under Section 301 of the Trade Act of 1974 that the acts, policies, and practices of 60 economies related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is unreasonable and burdens or restricts U.S. commerce, and are thus actionable under Section 301(b) of the Trade Act. USTR released a report, "Acts, Policies, and Practices of Various Economies Related to the Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor."

Hearings — Treasury Secretary Scott Bessent is appearing before both congressional tax-writing committees for the annual hearings on the President's Fiscal Year 2027 Budget for the Department: today (Wednesday, June 3) at the Senate Finance Committee, and tomorrow (June 4) at the House Ways and Means Committee.

The House Ways and Means Committee has scheduled a hearing on "Digital Asset Taxation" for Tuesday, June 9 at 2 p.m.

Elections — There were primaries on Tuesday, June 2 in California, Iowa, Montana, New Jersey, New Mexico and South Dakota. While the interest during May was more on Republican primaries, Democratic contests are increasingly coming into focus. In the June 2 primary for the Iowa race to succeed retiring Senator Joni Ernst (R-IA), Rep. Ashley Hinson (R-IA) is the Republican nominee and state Rep. Josh Turek (D) won the Democratic primary over Iowa state Sen. Zach Wahls (D). The contest was viewed as a test of support for Senate Majority Leader Chuck Schumer (D-NY), who backed Turek and was criticized by Wahls.

A story in the June 2 Washington Post, "In Iowa, a test of whether attacking Schumer pays off," said, "The race in Iowa is the first of a trio of Democratic Senate primaries this summer — followed by Michigan and Minnesota — that will test how much appetite the party's voters have for candidates skeptical of Democratic leadership in Washington." The August 4 Michigan Democratic primary, for the race to succeed the retiring Senator Gary Peters (D-MI), is between Rep. Haley Stevens (D-MI), former public health official Abdul El-Sayed, and state Senator Mallory McMorrow (D). The winner will likely face former Rep. Mike Rogers (R-MI).

The Post story said McMorrow "has said she will not support Schumer if she wins. Lt. Gov. Peggy Flanagan, who is facing a more moderate Democrat in Minnesota, has said she is 'uncommitted' to Schumer." Rep. Angie Craig (D-MN) is the other candidate in the primary. The story said, "Sen. Elizabeth Warren (D-Massachusetts) is backing McMorrow, Flanagan and Wahls, describing their primaries as a chance 'to bring in some fresh blood that's ready to reset the Democratic agenda.'"

Rep. Randy Feenstra (R-IA), endorsed by President Trump over the weekend, narrowly lost the Republican primary for Iowa governor to businessman Zach Lahn.