The United Nations says Trump’s increased tariffs will extend economic uncertainty
New tariff fees from 14 countries will do more in the future, extending the former start date for three weeks.
WASHINGTON – Congressional Republicans spent the first half of the year focusing on one goal. He handed President Donald Trump’s sweeping tax cuts and spending packages. The mission has been completed.
Now, lawmakers turn their attention to various press topics and look to other items on their to-do list that they’ve pushed away. The list likely includes impose new sanctions on Russia, ordering the Department of Defense’s global defense mission, funding the US government, and working on Elon Musk’s efforts to reduce spending on the early international development agencies of NPR, PBS and new GOP management.
But it’s not easy in the narrowly divided House and Senate where Republicans can only lose three votes in both rooms to achieve a majority. In the Senate, most laws require 60 votes to clear the filibuster.
Here’s what comes next on Capitol Hill:
Codify Doge Cuts
Earlier this summer, Trump urged Congressional Republicans to reclaim $9.4 billion in federal funds to reflect some of the cuts made by some of the government efficiency in masks.
The move strips funds from companies for public broadcasting that fund NPR and PBS, as well as foreign aid institutions such as the US International Development Organization and the World Health Organization.
If lawmakers do not act on it by July 18th, the request will expire and the funds will continue.
Republicans don’t need a Democrat vote to pass the Senate, as they only need a majority vote and Republicans manage rooms 53-47. However, some Republican senators are pushing for changes to the package to maintain funds for AIDS prevention, and it is unclear whether the vote will be passed.
Senate minority leader Chuck Schumer wrote a letter to his fellow Democrats who called the GOP plan a “toxic proposal.” This is equivalent to a Republican who, if passed, bypasses the traditional bipartisan spending process with “significant influence” due to the balance of power.
Avoid government closures
Congress must pass an annual budget bill to continue operating the government. If they do not do so, the government will be shut down. This means that most federal employees will be temporarily off work, national parks will be closed, and some services, such as federal food testing, will be suspended.
The deadline for funding the government is September 30th. As lawmakers won’t meet in August, they only have six weeks left to get it done.
Doing it in a traditional way – it’s unlikely that both the House and Senate will consider 12 spending bills on different subjects, sew them together, and pass it on a bipartisan vote. Instead, lawmakers will likely need another funding extension with bipartisan support to keep the government running.
That’s not easy. Democrats are furious at Republican plans to curb existing funds and are under pressure from the bases to push back the GOP rules. Political backlash Schumer faced his left-hand side with the decision to help pass the final funding extension. Expect some deals near deadlines or near government closures.
More Party Line Expense Invoice?
As Republicans tried to pass Trump’s tax bill, fiscal conservatives in both the House and Senate fought that more than $3.4 trillion in law would add to federal debt.
To get them on board, some lawmakers say Republican leaders have said they will pursue a second potentially third-party line package before the legislature closes at the end of 2026, pursuing deeper spending cuts.
Sen. R-Wisconsin Sen. R-Johnson told reporters on July 8 that he has “a considerable confidence” based on conversations with Trump and GOP leadership.
But achieving another party and line bill is a challenge. The narrow margins in both rooms have been difficult for Republican leaders to make Trump’s tax bills muscular.
Defense policy instructions
Approving the National Defense Authorization Act is a must-see for Congress annually. Lawmakers will use the bill to shape federal defense policies and approve spending at the Department of Defense.
Once the House and Senate lawmakers have finalized their proposal, they work across the Capitol to reach a compromise between both rooms.
The Republican tax bill included $150 billion for defense, but the Pentagon is asking Congress for $1 trillion. The NDAA will drove new policy fights, from anti-drone systems to making it difficult for the US to withdraw troops from Europe.
Russian sanctions
A group of bipartisan lawmakers led by R-South Carolina Sen. Lindsey Graham is pushing for a bill to implement sanctions on Russia to discourage Putin’s war on Ukraine.
Senate majority leader John Toon said on July 9 that he plans to lift the bill for votes by the end of the month. House Speaker Mike Johnson also expressed his interest in sanctioning Russia and said he was open to voting for the bill. You must pass through both chambers to sign the law.
The proposal would impose strict tariffs on countries purchasing Russia’s energy, and perhaps give broad power to determine when to enforce sanctions on the president.
Trump previously called the law “stricken” and expressed skepticism that it would work, but he softened the bill as his complaints about Putin rise.
