05 June 2026 What to expect in Washington (June 5) The Senate overnight approved the Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) reconciliation bill (S. 2) on a 52-47 vote mostly along party lines, though Senator Lisa Murkowski (R-AK) joined Democrats in voting against the measure. The House is expected to take up the bill next week. The "vote-a-rama" of limitless amendment votes began yesterday morning and the proposed $1.8 billion "anti-weaponization" fund was still a focus despite the Administration backing away from the proposal. An amendment by Senate Democratic Leader Chuck Schumer (D-NY) to recommit the bill to the committee level and add a prohibition on creation of the fund failed 49-50, with GOP Senators Susan Collins (R-ME), Jon Husted (R-OH), and Dan Sullivan (R-AK) — all of whom are in competitive midterm races — voting in favor. Another amendment, by Senate Finance Committee member Maggie Hassan (D-NH), to reallocate funding from the anti-weaponization fund to help build 100,000 new homes failed on a 46-52 vote. Senator Raphael Warnock's (D-GA) motion to require the Justice Department to investigate causes of loss or denial of Medicaid coverage to beneficiaries failed on a 46-52 vote. Senator Collins joined Democrats voting in favor (coincidentally, it was Senator Collins' 10,000th consecutive Senate vote, according to the press gallery). Tax — Treasury Secretary Scott Bessent appeared before both congressional tax-writing committees for annual hearings on the Department's budget — Wednesday, June 3 at the Senate Finance Committee and Thursday, June 4 at the House Ways and Means Committee. The benefits of the "One Big Beautiful Bill Act" (OBBBA) were cited by Republicans, while Democrats criticized the Administration's approach to the economy and said people are struggling to afford gas and grocery prices and health care costs. Secretary Bessent highlighted OBBBA uptake by taxpayers, including the no tax on tips and overtime provisions. Global tax — The Ways and Means Committee hearing veered into global tax issues, at least on the part of Chairman Jason Smith (R-MO) and Rep. Ron Estes (R-KS), who regularly raise them. Chairman Smith called the OECD side-by-side agreement a major win for US tax sovereignty and asked how the US can ensure that the agreement is respected and fully implemented. "I believe that we have the tools necessary that, if our sovereignty is not respected, to counteract any failures to enact this," Sec. Bessent said. Chairman Smith added that, working hand-in-glove as allies, Congress can move legislation to make sure the other nations honor the agreement, "and we're willing to do that if they do not honor your commitment." He asked about monitoring compliance, especially for EU nations. Sec. Bessent said there is active engagement, including with the OECD. Rep. Estes said there was discussion at last year's hearing of how Congress and the Administration could work together on the global tax agreement, and we are in a "much better spot" now. Estes further asked how other nations are implementing the side-by-side agreement, and Sec. Bessent repeated that there is cooperation with the OECD. The congressman repeated his intention to trust but verify that other nations are abiding by the agreement. Rep. Estes also mentioned digital services taxes (DSTs) and the desire to protect the US tax base from foreign efforts to infringe upon it, and said Congress is prepared to use available tools, including those "we may have put on the shelf," to do so. Rep. Randy Feenstra (R-IA) also asked about global tax issues. On a related note, Reps. Estes and Suzan DelBene (D-WA) June 4 introduced a resolution expressing opposition to DSTs. Cryptocurrency — The Finance Committee hearing included some notable inquiries on cryptocurrency tax issues, with Chairman Mike Crapo (R-ID) saying the Committee is working in a bipartisan approach for "establishing clear and durable tax rules for digital assets." During Q&A, Chairman Crapo said: "The Senate Finance Committee is engaged in productive bipartisan discussions on the taxation of digital assets. As the digital asset industry continues to grow and evolve, there's an increasing need for durable, common-sense rules of the road that provide certainty for taxpayers, support innovation and help ensure that the United States remains competitive in the global digital markets." He asked whether Treasury supports congressional efforts to develop comprehensive digital asset taxation rules and considers continued inaction a risk for taxpayer compliance and US competitiveness. Sec. Bessent said that since President Trump issued his January 2025 executive order on "Strengthening American Leadership in Digital Financial Technology," Treasury has been "working tirelessly to implement the action on digital assets." Senator Steve Daines (R-MT) also raised the prospects of crypto tax legislation, saying, "we've been developing now a framework that could give us clearer rules for digital asset taxation," and asked Bessent for Treasury's cooperation. "I will commit to that, and tax certainty, as we've seen with every other industry, is the key to innovation," the Secretary said. On a related note, the House Ways and Means Committee has scheduled a hearing on "Digital Asset Taxation" for Tuesday, June 9 at 2 p.m. An advisory said the hearing is to discuss legislation relating to the taxation of digital assets, creating an expectation that specific draft bills would be examined. There have been indications that topics that could be addressed include mining and staking, charitable deductions, tax anti-abuse rules, reporting rules, etc. Retirement Security — During the Finance hearing, Senators Tim Scott (R-SC) and John Barrasso (R-WY) both inquired about additional actions pursuant to President Trump's April 30 executive order, "Promoting Retirement-Savings Access for American Workers by Establishing Trumpira.Gov," to establish a website (TrumpIRA.gov) that provides workers who do not have access to an employer-sponsored retirement plan with information about low-cost IRAs and provide eligible individuals with a Federal Saver's Match contribution of up to $1,000. Sec. Bessent said Trump Accounts will launch on July 4, and the Department is consumed with that effort, then will be "laser focused" on the retirement IRA accounts directly afterward. Senator Barrasso said Treasury is expected to provide legislative recommendations to Congress for expanding the program. It was previously suggested the program could be expanded to those at higher income levels. Elections — The Supreme Court on June 2 cleared the way for Alabama to use redrawn voter maps that could edge out one Democratic district held by Rep. Shomari Figures (D-AL). Alabama's delegation currently comprises five Republicans and two Democrats, and could change to six Republicans and one Democrat, which would be Ways and Means member Terri Sewell (D-AL). A June 3 NBC News story, "Where the redistricting fight stands heading into the midterms," quantified each party's potential gains from the redistricting efforts as they stand now, with Republicans in position to gain up to 16 seats this fall compared with six for the Democrats, meaning a potential net 10-seat GOP gain:
Document ID: 2026-1201 | |||
