The Senate returns today (August 3) for what is scheduled to be the last week in session before the August recess. Republican senators and the Administration reached a late-night deal on the status of the proposed anti-weaponization fund and terms of the IRS immunity deal for the President's family and businesses reached by the Justice Department that had threatened the Attorney General nomination. There is the potential for activity this week on the three September 30 deadlines — government funding, the highway bill and the farm bill — as well as the Senate version of an FY2027 budget resolution that provides for a reconciliation bill, and other issues.

John Cornyn (R-TX) and Thom Tillis (R-NC) are the GOP Senators who have been pushing for the proposed anti-weaponization fund to be more formally put to rest — in writing — and the scope of the immunity deal clarified for their votes on the nomination of Todd Blanche as attorney general in the Senate Judiciary Committee. Chairman Chuck Grassley (R-IA) rescheduled a vote on the nomination for Tuesday, August 4.

"Despite comments as late as yesterday that the fund is dead, President Trump clearly intends to resurrect [it] … " Senator Tillis said on social media on Saturday. "Hopefully, we can resolve this by Tuesday." President Trump had posted on social media that if Cornyn and Tillis continue to oppose Blanche, he will "push hard to get the Anti-Weaponization Bill, which takes care of those who have been so badly treated … PASSED. Todd Blanche was a voice of reason! It will immediately be back on the table, and I will get it done … "

Late Sunday night (August 2), it was reported that Senator Cornyn had reached an agreement with the White House that satisfied his concerns. "Documents posted by Blanche [on social media] appear to meet the Texas Republican's demands to nullify a $1.8 billion 'Anti-Weaponization Fund' and to limit the scope of an IRS audit immunity deal applying to the president and his family," Politico reported, though Senator Tillis' reaction was not mentioned. A statement posted by Blanche said the DOJ's May 18 settlement order "is rescinded and shall have no force or effect."

Reconciliation — On another issue, the Senate may broaden the scope of the reconciliation measure provided for under the House-passed FY2027 budget resolution, which authorizes a GOP-only bill just for the SAVE America Act voter ID and citizenship provisions, defense funding and farm aid. Last week, some members questioned whether the chamber could act before the recess. Senate Majority Leader John Thune (R-SD) said: "Budget resolutions and reconciliation bills are very challenging. This one is no exception. Some of the things that are being contemplated being done in this reconciliation bill or in this budget resolution are things that could implicate a number of committees."

Thune said if there is a significant broadening of the measure to many committees, "all of the amendments offered on the floor would be germane to the bill, making them 50-vote amendments instead of 60. And obviously, that creates an uphill challenge, in terms of trying to ensure that you have 50 not only to get on the bill, 50 to defeat every amendment that comes across, but then also 50 to ultimately pass it."

Government funding - Another major part of the pre-recess agenda is a proposed continuing resolution (CR) to fund the government beyond the end of the current fiscal year on September 30 and through December 11. A procedural vote is set for 5:30 p.m. today (Monday, August 3) toward consideration of the legislative vehicle for the Senate CR, the House-passed African Growth and Opportunity Act (AGOA) Extension Act (H.R. 6500). The text of the CR was released yesterday and includes a highway bill extension through December 11, along with health policy extenders. The extensions portion also includes an extension of AGOA and the Haiti Economic Lift Program through December 31, 2028, with an extension of customs user fees to cover the cost.

"This bipartisan agreement prevents the Office of Management and Budget (OMB)'s proposed rule regarding federal financial assistance from taking effect," Appropriations Committee Chair Susan Collins (R-ME) said, addressing concerns raised by senators about the Administration canceling grants for political reasons. "I advocated for significant changes to the proposed rule in a July 6 letter to the agency, citing its potential to politicize grants and harm small, rural communities, families, and biomedical research."

There is also expected activity on other items with a September 30 deadline. Senate Agriculture Committee Chair John Boozman (R-AR) released a draft farm bill late July 31 and scheduled a markup for Thursday, August 6. The draft includes a delay in One Big Beautiful Bill Act (OBBBA/OB3) changes to the Supplemental Nutrition Assistance Program (SNAP) that Democrats wanted but was absent from the draft version Boozman released on June 23. The OB3 tightened eligibility based on work requirements and immigration status and shifted a greater share of costs to states starting in October 2027.

Sanctions — The Senate this week appears on track to pass the Lindsey O. Graham Sanctioning Russia and Iran Act (S. 5025). Some Democrats have expressed concern that the bill would expand the President's tariff authority at a time when many Democrats have criticized his use of tariffs to exert pressure on other countries, but on July 28, the Senate overwhelmingly voted 86-12 to advance the legislation procedurally. The bill would apply mandatory sanctions on Russian leadership, financial institutions, energy-sector entities, and sanctions evaders; impose additional scrutiny of Russia's "shadow fleet" used to transport oil; create tariff authority targeting major purchasers of Russian energy; and extend certain Iran sanctions.

Elections — The Senate's work continues this week as the midterm elections come into greater focus, and some Republicans are challenging the President's views just as there are moderate-versus-progressive dynamics between Democrats in multiple races this year. On NBC's "Meet the Press," Senator Bernie Sanders (I-VT) tried to reinvigorate the affordability focus, saying, "What's going on now is that millions of our people right now in the richest country on earth, they're struggling to put food on the table, pay for health care, pay for their rent, pay for their mortgage." He is aligned with progressive candidates and said of intraparty tensions, "You look at the Democratic Party leadership — which also gets their money like the Republicans from very wealthy people — and people are saying, 'Is the Democratic leadership representing ordinary Americans?'"

On CBS' "Face the Nation," Senator Mark Kelly (D-AZ) said, "gas is up over $4 a gallon. Half of Americans are having a hard time affording food, rent. Homeownership is down. Rent is up. The American people are really struggling. So, we have an opportunity to win back the House, and I am confident we will. On the Senate side, it's challenging. I'm not going to paint this as a rosy picture. But we've got 90 days to go."

Hearings — The Senate Finance Committee has scheduled a hearing entitled, "Exploring Process Approaches for Addressing Social Security Solvency" for Wednesday, August 5, at 10 a.m. Witnesses are Marc Goldwein of the Committee for a Responsible Federal Budget, Nancy LeaMond of AARP, and Charles Blahous of George Mason University.

The Finance Subcommittee on Health Care has scheduled a hearing, "Building a Resilient Health Care Future with Biotechnology," for Tuesday, August 4 at 10 a.m. Witnesses are Alan Palkowitz of the Indiana Biosciences Research Institute (IBRI), Kevin Outterson of Boston University, Vera Luther of Dartmouth Health, and Michelle Rozo of the National Security Commission on Emerging Biotechnology.

The Senate Budget Committee will hold a hearing on "Medicaid: The Reality" on Tuesday, August 4 at 10 a.m.

Crypto — The crypto industry's push to get the Clarity Act (H.R. 3633), which would establish a regulatory market structure for trading digital assets, passed in the Senate before the August break has lately been downsized to the goal of simply holding a show-your-cards vote to end debate on a motion to proceed to the bill before the break. Now even that vote has come into question as a number of Republicans have expressed concerns that the bill's language allowing crypto platforms to pay a form of yield on certain stablecoins could cause a flight of deposits from community banks. Those concerns echo arguments offered by the banking industry, which never embraced a compromise on stablecoin yield negotiated by Senators Tillis and Angela Alsobrooks (D-MD) on May 1.

"If Senate Republicans want to hold a cloture vote on the Clarity Act to put Democrats on record, they will," Punchbowl News reported on Sunday. "By all accounts, that is still the plan. But the political upside of that maneuver has soured over the past two weeks. Months of growing momentum have become snarled by real problems among Republicans." Over the last week, Republican Senators Mike Rounds (SD), James Lankford (OK), Cornyn and John Curtis (UT) have all questioned the Clarity Act's effect on bank deposits. As for the bill's longer-term prospects, "At this point, the Clarity Act's odds of passage before year-end are poor. Floor time is a problem. Not having the votes is a bigger one," the report said. Majority Leader Thune would likely need to file cloture on the bill by Tuesday (August 4) in order to hold a vote this week.