The House Budget Committee is scheduled to mark up a budget resolution tomorrow (Thursday, July 16, at 9 a.m.) that is intended to pave the way for another reconciliation bill. Majority Leader Steve Scalise (R-LA) said a floor vote on the resolution is planned for next week — the last week the House is scheduled to be in session prior to the August recess. "Reconciliation 3.0 is in process. There will be markup this week. I was on the phone with Chairman Arrington until late last night. We're working out the details of that," Speaker Mike Johnson (R-LA) said July 14, referring to Budget Committee Chair Jodey Arrington (R-TX).

The text of the resolution was released this morning. Materials are available here.

A goal of widespread social safety net integrity provisions appears to have lessened, "But Arrington is searching for roughly $20 billion in offsets to balance out non-defense spending in the supplemental," Punchbowl News reported. Top House Republicans, including Speaker Johnson and Ways and Means Committee Chairman Jason Smith (R-MO), visited the White House to discuss a potential Reconciliation 3.0 bill July 14. It is unclear what the bill could include aside from the defense funding that President Trump has called for. Chairman Smith's efforts to provide for a tax title were reportedly challenged by other leaders. Axios reported that, in addition to defense funding and voting provisions, the bill will include $20 billion for agriculture and farm aid.

It is also uncertain whether Republicans, with only a few-seat majority in the 219-212 House, can maintain unanimity to pass the budget and a follow-on reconciliation bill. Social safety net integrity provisions were previously expected to be included, though offsets have reportedly become less of a priority. "It is not yet clear whether Republicans have enough votes to advance key steps of the Byzantine budget reconciliation process in either chamber," a July 14 Bloomberg report, "House Republicans Plan to Vote Next Week on Budget Blueprint," said. "Defense hawks have sought to supercharge military spending while fiscal watchdogs have called for corresponding spending cuts … that haven't materialized."

Congress — House floor action had been stifled by conservatives blocking rule votes until Congress enacts the SAVE America Act voter ID bill, but Speaker Johnson was able to secure the sufficient votes July 14 for a rule for consideration of bills including the National Security, Department of State, and Related Agencies Appropriations Act, 2027 (H.R. 8595), which passed 215-211. Politico reported, "To appease Rep. Anna Paulina Luna (R-Fla.) and other lawmakers agitating for Senate passage of the SAVE America Act, Johnson used the procedural measure approved Tuesday to attach the elections bill to the State Department funding bill before it is sent over to the Senate."

The late Senator Lindsey Graham's (R-SC) sister, Darline, has been appointed to serve the remainder of his term. Senate Majority Leader John Thune (R-SD), a fellow Senate pragmatist who served more than 20 years in the chamber with Senator Graham, closed a tribute speech by saying, "I am comforted by the knowledge that in the end, he has just changed his address. And that one day, Mr. President, we will laugh together again."

The passing of Senator Graham and resulting committee changes, and the hospitalization of Senator Mitch McConnell (R-KY), come at a busy time for the Senate. The Senate returned to session this week with an agenda including "renewing an expired surveillance law, considering Trump's request for more Pentagon funding for the war with Iran, confirming Todd Blanche as attorney general and advancing spending bills before a Sept. 30 government funding deadline … " said a story, headlined "Graham's death complicates GOP agenda in Senate," in the July 14 Washington Post. "In addition to renewing the [FISA] surveillance law and considering Trump's request for more defense spending, Congress also must reach an agreement to fund the federal government by Sept. 30 to prevent another government shutdown. Some Republicans also want to push through more priorities ahead of the midterms using reconciliation … "

Health care — The House Ways and Means Committee is holding a markup today (Wednesday, July 15) of:

• H.R. 9641, the Essential Caregivers Act of 2026
• H.R. 3108, the Rural Patient Monitoring Access Act
• H.R. 9642, the Medicare Access to Rural Anesthesiology Act
• H.R. 9468, the Saving Today's Acute-Care Resources Act (STAR) Act
• H.R. 3514, the Improving Seniors' Timely Access to Care Act of 2025
• H.R. 9644, the Medicare Advantage MLR Transparency Act
• H.R. 9645, the Health Care Price Certainty for All Americans Act

The Health Care Price Certainty for All Americans Act (H.R. 9645) would replace the 2021 Consolidated Appropriations Act price comparison provision — which allows a comparison of the amount of cost-sharing the enrollee is responsible for — for plan years beginning on or after January 1, 2029. The bill requires group health plans to make information on rates, deductibles, and cost-sharing available in various formats.

Federal Reserve — At his first appearance before Congress since being sworn in as Federal Reserve chairman in May, Kevin Warsh on Tuesday (July 14) presented himself to the House Financial Services Committee as a reformer focused on restoring price stability and re-evaluating key Fed practices. Warsh repeatedly argued that inflation remains the Fed's foremost challenge, declaring that "inflation's a choice" and insisting that policymakers must "choose lower prices." Warsh defended his decision last week to launch five task forces reviewing areas ranging from communications and balance-sheet policy to inflation frameworks and productivity and sharply criticized the Fed's 2020 flexible average inflation targeting framework, calling it "a mistake" and arguing that prior policymakers sought "a little more inflation and end[ed] up with a lot more."

Pressed repeatedly on whether he would subordinate monetary policy to political considerations, Warsh said "my commitment to you is to follow the law and follow the data," and later pledged that "the Fed will remain independent on my watch." Warsh described artificial intelligence as "perhaps the most significant change in our economy in my adult lifetime," arguing that it could drive substantial productivity gains while also creating new risks for employment, cybersecurity and financial stability. Warsh will testify before the Senate Banking Committee today.

Treasury — On Thursday, July 16, the Senate Finance Committee will hold a hearing on the nominations of:

• Francis Brooke to be Deputy Secretary of the Treasury
• Erin Browne to be Under Secretary of the Treasury for International Affairs
• Sriprakash Kothari to be Assistant Secretary of the Treasury for Economic Policy
• George McMaster to be Assistant Secretary of the Treasury for Financial Markets

Press stories on the reported departure of Treasury Assistant Secretary for Tax Policy Ken Kies, who has also been Acting IRS Chief Counsel, have included a focus on the impact on implementation of the "One Big Beautiful Bill Act" (OBBBA/OB3). President Trump on June 23 sent to the Senate the nomination of James Gadwood, a tax controversy lawyer, to be IRS Chief Counsel.

DOL — On Thursday, July 16, the Senate Health, Education, Labor, and Pensions (HELP) Committee will hold a confirmation hearing on the nomination of Keith Sonderling to be Secretary of the U.S. Department of Labor.

Friday, July 17 at 12 p.m. is the EY Center for Tax Policy monthly update - July 2026. Register.