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Senate Readies for Reconciliation Vote, House Tackles Other Priorities: The Senate remained focused on reconciliation this week while the House worked through a packed legislative agenda. During the early May recess, the Senate Judiciary and Homeland Security and Governmental Affairs committees released their respective reconciliation sections, totaling $72 billion for immigration enforcement operations. The proposal directs most funding to U.S. Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) to be used for hiring, training and technology upgrades; however, it also includes money for the Secret Service for “security adjustments and upgrades” related to President Donald Trump’s East Wing ballroom project. Senate leadership is moving to have the two committees mark up their respective packages next week, with a final vote to follow.

Before floor consideration, however, the Senate parliamentarian must assess whether the provisions comply with procedural safeguards in a process known as the “Byrd Bath.” On May 14, the Senate parliamentarian ruled against several sections of the Homeland Security & Governmental Affairs Committee title, including one providing the Department of Homeland Security an additional $2.5 billion in funding.

As Senate Republicans rework the text, Democrats are preparing to challenge Republicans’ ballroom funding request, arguing that it runs afoul of prior rulings prohibiting the use of the reconciliation process to finance individual projects. In an effort to build support for the ballroom among Senate Republicans—some of whom insist the reconciliation package remain narrow in scope—Secret Service Director Sean Curran held a closed-door briefing. Still, several Republicans emerged from the meeting unconvinced.

The Senate also voted 54-45 to confirm the nomination of Kevin Warsh to be chairman of the Federal Reserve. Warsh will succeed Jerome Powell, whose eight-year tenure ends on Friday. Senators are poised to confirm an additional 49 Trump nominees (S.Res.690) en bloc.

In the House, lawmakers spent the week working through other legislative priorities. Members reversed course on plans to merge legislation (H.R.1346) authorizing the year-round sale of E15 with the farm bill (H.R.7567) passed last month, instead advancing H.R.1346 as a freestanding measure and sending it to the Senate, where its fate remains uncertain.

Before the week’s end, the House voted 400-15 to approve the first of 12 fiscal year 2027 appropriations bills—Military Construction-Veterans Affairs (H.R. 8469). After weeks of negotiations, lawmakers also released a revised 21st Century ROAD to Housing Act (H.R.6644), their response to the Senate-passed version of the housing affordability legislation. Next week, the House plans to consider the housing measure and continue discussions on temporarily suspending the federal gas tax, following Trump’s statement that the move is necessary to address rising fuel prices.

House E&C Health Subcommittee Advances 10 Bipartisan Health Bills: On Wednesday, May 13, the House Energy and Commerce Subcommittee on Health held a markup and unanimously advanced 10 bipartisan health care bills to the full committee, including legislation aimed at modernizing Food and Drug Administration (FDA) testing requirements and strengthening the agency’s authority over unsafe imports. Among the measures advanced was the FDA Modernization Act 3.0, led by Reps. Buddy Carter (R-GA) and Nanette Barragán (D-CA), which would require FDA to update regulations on nonclinical testing methods and further implement alternatives to animal testing authorized under the FDA Modernization Act 2.0. The subcommittee also advanced the Destruction of Hazardous Imports Act, led by Reps. Clay Higgins (R-LA) and Troy Carter (D-LA), which would expand FDA authority to destroy refused imports deemed to pose significant public health concerns. Additional legislation the subcommittee advanced included reauthorizations for programs addressing tick-borne diseases, breast cancer awareness, stem cell therapies, school-based health centers, access for ALS treatment, and dementia and Alzheimer’s provider training, as well as bills related to Medicare mobility access and accountable care organization reporting flexibility. Chairman Morgan Griffith (R-VA) emphasized the bipartisan nature of the package and its focus on improving public health and patient access, while Ranking Member Diana DeGette (D-CO) supported the bills but criticized the committee for not addressing broader healthcare affordability and coverage issues.

Senate HSGAC Holds Hearing on COVID-19 Whistleblower Testimony: On Wednesday, May 13, the Senate Homeland Security and Governmental Affairs Committee held a hearing titled “Whistleblower Testimony on the COVID Coverup.” The discussion centered around alleged suppressions of intelligence, failures in transparency and conflicts of interests. Chairman Rand Paul (R-KY) argued that the American public has not received a full account of COVID-19’s origins or the government’s response. He stated the committee would hear whistleblower testimony alleging that Central Intelligence Agency (CIA) analysts assessed a lab leak as the most likely origin, but those findings were suppressed or altered before reaching Congress and the public. Chairman Paul described a “closed circle” of government officials and scientists reinforcing shared conclusions, raising concerns about conflicts of interest, including the role of former National Institute of Allergy and Infectious Disease (NIAID) Director Anthony Fauci in shaping both research funding and public messaging. He also criticized the intelligence community for failing to fully comply with congressional declassification requirements and emphasized the need for transparency and accountability. Republican members questioned whether evidence of a possible lab origin was downplayed, raised concerns about transparency and interagency cooperation and suggested that internal pressures and leadership influence may have shaped COVID‑19 assessments and public reporting.

CMS Ramps Up Crackdown on Fraud with Hospice and Home Health Agency Enrollment Moratoria: On Wednesday, May 13, the Centers for Medicare and Medicaid Services (CMS) implemented a six-month, nationwide moratoria on new Medicare enrollment for hospices and home health agencies (HHAs). CMS notes that the moratoria will allow the agency to “temporarily halt the influx of new providers into high-risk categories—a key source of fraudulent activity.” During the six-month moratoria, CMS will intensify targeted investigations, deploy advanced data analytics and accelerate the removal of hospice and HHA providers from the Medicare program that are suspected of committing fraud. In addition, the moratoria will apply to all applications for initial Medicare enrollment and certain changes in majority ownership, which CMS claims are frequently used to obscure control by bad actors. The moratoria will not impact current enrollments, and existing providers can continue to deliver services to Medicare beneficiaries. Recent CMS action has included the suspension of payments to 773 hospices and 23 HHAs suspected of fraud in Los Angeles alone, representing $70 million in suspended funds thus far.

FDA Commissioner Marty Makary Resigns: On Tuesday, May 12, Food and Drug Administration (FDA) Commissioner Marty Makary resigned from his role after 13 months leading the agency. Kyle Diamantas will lead the FDA in an acting capacity, who has quickly garnered support from most corners of the Trump administration and the Make America Health Again (MAHA) movement. Makary’s stint was marked by mass layoffs, persistent churn among senior leaders and policy fights with lawmakers on Capitol Hill and President Donald Trump. Before departing to China, President Trump called Makary a “great guy” and “friend,” but that he was “having some difficulty.”

HHS and CMS Announce First Meeting of Healthcare Advisory Committee: On Tuesday, May 12, the Department of Health and Human Services (HHS) and Centers for Medicare and Medicaid Services (CMS) announced the first Healthcare Advisory Committee meeting that will be held on May 18. The public meeting will focus on introducing committee members, outlining the vision of the committee and establishing committee bylaws. The Healthcare Advisory Committee was established earlier this year as a federal advisory body comprised of leaders from across the healthcare system to provide expert advice on improving, strengthening and modernizing U.S. healthcare. The committee will advise HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Dr. Mehmet Oz on ways to improve how care is financed and delivered across Medicare, Medicaid, the Children’s Health Insurance Program (CHIP) and the Health Insurance Marketplace.

CMS Announces Early Adopters to Advance Solutions for Electronic Prior Authorization: On Wednesday, May 13, the Centers for Medicare and Medicaid Services (CMS) announced that 29 healthcare organizations, including health systems, electronic health record developers, physician practices, networks and digital health developments, have signed on as early adopters as part of the Electronic Prior Authorization Acceleration initiative to address key challenges and drive solutions ahead of 2027 requirements. They join other payers that have already committed to working with CMS to identify and address workflow, technical and operational barriers that have slowed adoption of electronic prior authorization across the healthcare system. Through this effort, participating organizations are working to integrate electronic prior authorization into clinical and administrative systems, reduce reliance on manual processes such as fax and portal-based workflows, increase visibility into authorization status and decisions and close workflow gaps and improve technical handoffs across systems.

HHS Announces MOU to Advance Maternal Health: On Tuesday, May 12, the Department of Health and Human Services (HHS), through the Office on Women’s Health (OWH), announced a new Memorandum of Understanding (MOU) to advance maternal health outcomes and improve care for women and families across the United States. Specifically, HHS will work to exchange information, align strategies and collaborate on evidence-based initiatives to reduce maternal morbidity and mortality and strengthen care across the lifespan, including before, during and after pregnancy. HHS’ collaboration will also support the expansion of the HHS Perinatal Improvement Collaborative (HHS PIC), a nationwide network of hospitals and healthcare teams working to improve maternal and infant health outcomes through measurable, evidence-based practices. HHS’ efforts reflect a broader commitment to improving maternal health through innovation, partnerships and evidence-based care.

Neal Plots Democratic Agenda for Ways and Means Committee: If Democrats regain the House Majority in November, House Ways and Means Committee Ranking Member Richard Neal (D-MA) already had pronounced ideas for his agenda if he is chairman of the committee. Ranking Member Neal plans to conduct extensive oversight of the Trump administration’s tax, Internal Revenue Service (IRS) and economic policies, rather than refighting the battle to obtain President Trump’s tax returns. He and other Democrats also are considering investigations into President Trump’s lawsuit against the IRS over a prior tax‑return leak, the sharing of tax data with the Department of Homeland Security for immigration enforcement, the new “CEO” role at the IRS, and the effects of IRS staffing cuts on taxpayer services. Democrats also hope to work on legislation extending the extended Advanced Premium Tax Credits (eAPTCs), restoring clean energy tax credits that were terminated early in the One Big Beautiful Bill Act (OBBBA, Public Law 119-21), and reviving expired provisions like the Work Opportunity Tax Credit.

Smith Doubles Down on Alleged CCP-Linked Nonprofits: On May 5, House Ways and Means Committee Chairman Jason Smith (R-MO) sent follow-up letters to three tax‑exempt organizations—BreakThrough News, Tricontinental and The People’s Forum—regarding their funding sources. In his letters, Chairman Smith set a May 18 deadline for recipients to provide documents and communications about their fiscal sponsorships and any financial or governance ties to foreign nationals, organizations or governments. Chairman Smith also requested detailed information on entities providing fiduciary or financial services, contracts involving foreign parties, communications with foreign principals, and lists of foreign donors providing more than $5,000 and foreign grantees.

Smith Wants Bipartisan Crypto Tax Bill: Chairman Jason Smith (R-MO) said he is finalizing draft legislation to address how digital assets like cryptocurrencies are taxed, but he emphasized he will not move the bill forward without bipartisan backing. He said Democratic support is essential despite having advanced partisan tax legislation in the past. Ranking Member Richard Neal (D-MA) indicated he has not been consulted and noted many lawmakers still need to better understand the technical complexities of crypto taxation. Other Democrats, including Rep. Steven Horsford (D-NV), signaled openness to discussions, but said they have not seen details of Chairman Smith’s proposal, even as separate, bipartisan crypto tax bills continue to circulate.

Separately, the House Ways and Means Committee is reportedly having a closed-door, bipartisan roundtable with crypto tax experts from academia and the private sector.

Trump Expresses Support for Limited Gas Tax Suspension: On Monday, President Trump announced his support for temporarily suspending the federal gas tax. The administration had previously dismissed a gas tax “holiday,” and Congress remains skeptical, given its long‑standing concerns about reducing revenue into the Highway Trust Fund and increasing the deficit. Since President Trump’s announcement, Sen. Josh Hawley (R‑MO) and Rep. Jeff Van Drew (R-NJ) have introduced legislative proposals to suspend the gas tax. Senate Majority Leader John Thune (R-SD) said he is willing to “hear out” colleagues pushing the idea.

Separately, Sens. Mark Kelly (D-AZ) and Richard Blumenthal (D-CT) and Rep. Chris Pappas (D-NH) introduced legislation to suspend the gas tax in March.

Guidance on Nuclear Production Credit Estimated to Be Released in the Summer: Speaking at an event last week, Don Snyder, deputy assistant secretary for energy in the Office of Tax Policy, said the Treasury Department expects to release guidance on the section 45U nuclear production tax credit this summer. Guidance for the section 45X advanced manufacturing credit and prohibited foreign entity (PFE) restrictions on clean energy tax credits will likely not be ready until late this year. Snyder said the Treasury Department has received extensive comments on PFEs, especially on how to treat foreign‑held debt, and emphasized that officials are still evaluating guidance and actively seeking additional stakeholder input.

Treasury Department Officials Discuss Upcoming Guidance Projects at ABA May Tax Meeting: Last week, the Treasury Department and Internal Revenue Service (IRS) officials said they are drafting regulations and other guidance to implement several provisions of the SECURE 2.0 Act. At the American Bar Association (ABA) conference, Bill Evans and Robert Daily, attorneys in the Office of Tax Policy at the Treasury Department, said upcoming guidance will address employer matching contributions on employees’ qualified student loan payments and rules for rollovers from employer plans to IRAs, including ways to promote electronic rollovers. Kara Soderstrom, an attorney in the Office of the IRS Chief Counsel, added that the IRS is also working on final regulations clarifying how SECURE 2.0’s long-term part‑time employee provisions apply, in order to expand retirement plan access while giving plans operational clarity.

On other benefits issues, Helen Morrison, benefits tax counsel at the Treasury Department, said the administration is preparing a series of notices and regulations to implement parts of the One Big Beautiful Bill Act (OBBBA), including a forthcoming notice expanding the section 45S paid family and medical leave credit and guidance on the section 45F employer‑provided childcare credit. She added that the Treasury Department is also working on rules for new limitations on deductions for excess compensation that will take effect next year.

On employer tax issues, Kurt Lawson, deputy benefits tax counsel at the Treasury Department, discussed employer‑focused tax guidance expected over the coming months, including high‑priority regulations under section 162(m) on the $1 million compensation deduction limit for for‑profit corporations expected this fall and coverage of control‑group and partnership issues. Lawson also announced plans for a transition‑rules notice and proposed regulations under the section 4960 excise tax on excess tax‑exempt organization compensation. Guidance to be released in the summer is expected to address employer contributions to section 530A Trump accounts and nondiscrimination requirements.

On corporate tax, Heather Harman, a tax policy advisor in the Office of Tax Legislative Counsel, said a second package of proposed regulations on the corporate alternative minimum tax (CAMT) will likely not be issued until early 2027, with February as a tentative target, and no additional interim notice guidance is planned. The IRS and Treasury Department are continuing to review comments on the 2024 proposed regulations and related notices. Deena Devereux, an attorney at the IRS Office of Associate Chief Counsel, also highlighted parallel projects on reversing certain section 163(j) elections after OBBBA changes, forthcoming regulations on sections 174 and 174A for research cost amortization (with accompanying method‑change procedures), and guidance under section 460 to address the OBBBA’s changes to condominium construction in the long‑term contract rules.

Trump Administration Taps Longtime Immigration Official to Lead ICE: On May 12, the White House announced that David Venturella would serve as the acting director for Immigration and Customs Enforcement (ICE). Venturella is a former career ICE official who spent several years at a private prison company before rejoining the federal immigration enforcement agency last year. ICE will continue its tradition of operating with acting directors, rather than Senate-confirmed officials. The last Senate-confirmed director, who was approved during the Obama administration, retired in January 2017 ahead of the first Trump administration. Venturella’s nomination is in line with Department of Homeland Security (DHS) Secretary Markwayne Mullin’s goal of keeping the department out of the headlines, having previously stated: “my goal in six months is that we’re not the lead story every single day … my goal is for people to understand we’re out there, we’re protecting them, and we’re working with them.” During his long career at ICE, Venturella was known to prefer quieter immigration operations, compared to the highly publicized operations conducted by DHS in major cities throughout 2025. In an additional staffing change, U.S. Border Patrol Chief Michael Banks, who has served since the start of the second Trump administration, announced his resignation on May 14.

State Department Eases Visa Bond Requirements Ahead of World Cup: As of May 13, the Trump administration has suspended a requirement for visitors from certain countries to post bonds as high as $15,000 to obtain a visa for entry into the United States ahead of the World Cup. The administration had required visitors from countries deemed to have high visa overstay rates to post bonds ranging from $5,000 to $15,000 as part of their visa application process. The requirement, which covered five African countries that had qualified for the World Cup, threatened to massively increase costs for foreign soccer fans to travel to the United States. The full list of countries covered by the initial visa bond requirement can be found here, with most having been added in January 2026. Following the May 13 update, applicants from countries competing in the 2026 World Cup who have purchased event tickets will have the bond requirement waived, provided they demonstrate they are otherwise fully eligible for a U.S. visitor visa.

H-1B Visas Expected to Face Further Restrictions: As of May 11, the Trump administration is expected to further restrict eligibility requirements for H-1B visas. As part of this effort, the administration is expected to finalize proposed rules meant to raise salary requirements for H-1B professionals and employment-based immigrants, while proposing new rules that would restrict employers, visa holders, and international students from seeking employment after graduation. Companies will also face greater obstacles, including tougher adjudications, stricter oversight from the Department of Labor, and greater difficulty obtaining visa interviews. The wage requirement, which was raised in a proposed rule published by the Department of Labor in March, will likely be finalized in late 2026 or early 2027. The rule would increase minimum salary requirements by 21% to 33%, depending on the worker’s experience level.

The Trump administration is expected to propose a rule meant to further restrict the H-1B visa category. The new H-1B rule would blend two elements of the administration’s unsuccessful October 2020 regulation: (1) to make it more challenging for highly skilled foreign workers to qualify for H-1B visa status, and (2) to prevent H-1B visa holders from working at customer sites. The October 2020 rule failed after judges found the rule was likely in violation of the Administrative Procedure Act (APA), as administration officials attempted to publish the rule without undergoing the normal rulemaking process. The Trump administration is also expected to end or restrict Optional Practical Training (OPT) for international students. The program allows international students to work for 12 months in their field of study before or after completing their university course requirements. STEM OPT allows students to work an additional 24 months in a science, technology, engineering or math field. The OPT program serves as a bridge between education and employment, which allows international students to remain lawfully present in the United States while applying for an H-1B visa. By retaining their lawful status, international students can request a change of status from their F-1 to an H-1B visa, allowing them to remain in the United States while the application proceeds. Without the OPT process, international students will be required to undergo the consular process to apply for an H-1B visa in their home country.

Trump Administration Lifts Hold on Immigration Applications for Doctors: As of May 8, the Trump administration has created an exemption to its green card and visa application freeze that would permit physicians access to the application review and renewal process. Since 2026, U.S. Citizenship and Immigration Services (USCIS) has placed an administrative hold on immigration benefit applications for nationals of 39 countries, as designated by a presidential proclamation from December 2025. The pause included pending employment authorization documents (EADs), benefit extensions and H-1B filings for covered individuals. On March 30, USCIS established an internal review process for lifting the hold on certain categories of cases. Since then, the agency has added “applications associated with medical physicians” to the list of cases that are exempted from the hold. However, the scope of the exemption is undefined, so it is unclear whether physicians seeking EADs, change of status requests or other benefit applications related to employment will be fully released.

House Releases Fiscal Year 2027 Appropriations Bill for Energy and Water Development: On May 14, the House Appropriations Committee released bill text for the Fiscal Year (FY) 2027 Energy and Water Development Appropriations bill. The House bill includes $50.359 billion for the Department of Energy (DOE), which is $459 million below FY26 enacted program level with $8.5 billion for the Office of Science; $1.85 billion for Critical Minerals and Energy Innovation (formerly Energy Efficiency and Renewable Energy), which is $1.25 billion below the FY26 enacted program level; $190 million for Cybersecurity, Energy Security, and Emergency Response, which is on par with FY26 levels; $700 million for Hydrocarbons and Geothermal Energy (formerly Fossil Energy), which is $20 million below the FY26 enacted program level. The committee said it is refocusing the account back to supporting fossil fuel generation technologies that are reliable, efficient and cost effective and prioritizing activities that advance baseload power like geothermal and nuclear. A subcommittee markup will be held May 15.

BLM Finalizes Public Lands Rule Recission; BLM and DOE Nominees Set to Be Confirmed: On May 11, the Trump administration finalized recission of the Public Lands rule, which prioritizes conservation in public land management. The policy was intended to incentivize the Bureau of Land Management (BLM) to make conservation a formal use of public lands while easing regulations on livestock grazing, but the Trump administration argues that it impedes on energy development on public lands. This is expected to offer the administration more legislative leeway to open up previously protected lands for drilling and mining, among other uses. BLM is also set to propose revisions to grazing regulations to allow ranchers more flexibility in utilizing public allotments and alleviate the stress of maintaining rangeland health.

On May 11, the Senate voted 46-45 to pass S.Res. 690 to authorize the en block package consideration of 49 nominees, including the nomination of Steve Pearce to be director of BLM. Former Rep. Pearce’s (R-NM) nomination had been stalled in January but will likely be confirmed Thursday. The Senate is also poised to confirm Kyle Haustveit to be the Department of Energy’s undersecretary and David LaCerte to be commissioner of the Federal Energy Regulatory Commission. The Senate will vote on the package on May 14.

DOE Launches New Hub for Minerals Research Amid All-Time High-Energy Output: On May 12, the Department of Energy (DOE) announced the launch of a “center of excellence” hub for minerals research in Albany, Oregon. Assistant Secretary for Hydrocarbons and Geothermal Kyle Haustveit said the initiative will focus on DOE’s industry partnerships by “inviting industry into our labs.” DOE has previously established similar centers, including one for oil and gas research and development in Pittsburgh and a center for coal in West Virginia, but has not provided additional details on the center. This comes as the Energy Information Administration (EIA) announced record high energy production in 2025 for crude, natural gas and renewables. According to EIA’s analysis, natural gas production grew by more than 4% from 2024 to 39 trillion cubic feet last year.

Trump, Lula Discuss Critical Minerals: On May 7, President Trump met with Brazilian President Luiz Inácio Lula da Silva in Washington to discuss several issues, including a Brazilian initiative to incentivize critical minerals projects. Lula told President Trump about a bill in Brazil’s National Congress that would establish a council to prioritize critical minerals as a matter of national security, which he expects to pass soon. The legislation would also provide over $1 billion in tax incentives for domestic mining operations and allow the Brazilian government to veto past minerals agreements. Lula told reporters that his government is willing to work with companies from the United States, China, Japan, the European Union and any other country willing to support mining and processing in Brazil. However, he said Brazil will not give up its sovereignty and warned that Brazil will require domestic processing rather than only exporting raw materials.

Despite Lula’s willingness to advance critical minerals deals with the United States, a recent rare earths agreement between Serra Verde Group and USA Rare Earth is under review. Brazil’s Administrative Council for Economic Defense announced that it is reviewing the agreement for rare earth mining and processing in Brazil for antitrust issues. The council emphasized that the investigation does not necessarily mean there are any issues, but the review could delay USA Rare Earth’s operations and strain potential negotiations of a bilateral critical minerals agreement.

United States, China Seek to Extend Minerals Trade Truce: As of May 11, a senior U.S. official said the United States and China both hope to maintain their truce on minerals trade. President Trump and Chinese President Xi Jinping announced a one-year trade truce in October 2025, which included a commitment by China to license exports of critical minerals and delay its proposed expansion of global export controls, while the United States committed to delaying its own export controls on China. The U.S. official said the two governments already discussed extending the truce during a meeting in South Korea, though the extension might not be announced during President Trump’s visit to China, as the truce will not expire until October.

United States, Japan Meet to Discuss Mineral Supply Chains: On May 12, U.S. Treasury Secretary Scott Bessent and Japanese Finance Minister Satsuki Katayama met in Tokyo to discuss opportunities to strengthen critical mineral supply chains. Katayama expressed concerns about China’s export restrictions on critical minerals and urged Bessent to advocate for Japan’s access to minerals during President Trump’s visit to China. Katayama reaffirmed that the two countries are working to identify and support critical minerals projects through their action plan signed in March. She also shared that the G7 has continued discussions on a critical minerals plurilateral agreement, which could include a buyer’s club and price floors.

United States, South Africa Hold Preliminary Mining Talks: As of May 8, U.S. and South African officials met in Johannesburg to discuss minerals cooperation. South Africa is a major producer of platinum, chromium, manganese and other minerals, and the officials discussed potential mining projects that could benefit from U.S. involvement. One project that was reportedly discussed was the Phalaborwa rare earths project owned by Rainbow Rare Earths. Around 20 mining and banking executives attended the meeting along with U.S. officials from the departments of Treasury, State, Commerce, Defense and Energy, as well as the U.S. Export-Import Bank (EXIM) and U.S. International Development Finance Corporation (DFC). The U.S.-South Africa relationship has been tense since President Trump took office, but South African President Cyril Ramaphosa said he looks forward to developing a critical minerals framework with the United States.

United States, Papua New Guinea Discuss Minerals Cooperation: On May 7, U.S. Assistant Secretary of State for East Asian and Pacific Affairs Michael George DeSombre met with Papua New Guinea Deputy Prime Minister John Rosso for a Strategic Partnership Dialogue. The dialogue focused on several topics, including critical mineral cooperation, and Papua New Guinea expressed an interest in working with more U.S. companies in this sector. This meeting followed the 2025 Framework for Strategic Cooperation between the two countries, which set a goal of collaboration in critical minerals extraction and processing with a focus on sustainable development and investment competitiveness.

State Department to Discuss Minerals Cooperation with Panama, Guyana, Costa Rica: On May 12, the State Department announced that Under Secretary of State for Economic Affairs Jacob Helberg will travel to Guyana, Panama and Costa Rica from May 12‒16. During his visit, Helberg will attend meetings and events to strengthen cooperation on energy security and critical minerals supply chains.

India, Russia Nearing Critical Minerals Agreement: As of May 12, India and Russia are in advanced talks to sign a preliminary agreement on critical minerals. The agreement would cover exploration, processing and shared technology while focusing on lithium and rare earths. The deal could be signed within two months, and once signed, the governments would begin facilitating corporate investments. India could also revisit its involvement in Russian state corporation Rosatom’s lithium exploration project in Mali, which it left in March due to security concerns.

House Passes E15 Waiver; Trump Pushes Congress to Suspend of the Gas Tax: On May 14, the House voted 218-203 to pass H.R.1346, which would permanently allow the year-round sale of E-15. The fuel blend, which comprises of 15% ethanol and 85% gasoline, generally cannot be sold during the summer driving season because it does not meet gasoline Reid vapor pressure requirements—which limit fuel volatility under the Clean Air Act. However, in recent years the Environmental Protection Agency has issued several temporary emergency waivers permitting summertime E15 sales in response to fuel supply concerns and elevated gasoline prices. While supporters argue that permanent authorization would provide greater regulatory certainty, expand supply flexibility, increase consumer choice and support domestic biofuel producers, some argue that it could negatively impact refiners and impose future compliance issues for existing infrastructure and fuel distribution systems. The measure now moves to the Senate where it will need 60 votes for passage.

President Trump has raised pressure on members of Congress to support a suspension of the gas tax, which would suspend the $0.18/ gallon federal tax at the pump, as a way to ameliorate the rising costs Americans are paying. This will be an uphill lift as Senate Majority Leader Thune, Speaker Johnson and many others have made statements opposing any suspension as a minor reprieve at the pump that would have major impacts on the solvency of the Highway Trust Fund, which is already in a dire fiscal situation. As the House Transportation and Infrastructure Committee considers the Surface Transportation Reauthorization, Chairman Sam Graves (R-MO) has said the committee would likely have to consider proposals on suspending or revising the gas tax; however, so far there is little consensus to what they may look like. Fiscal conservative members on the committee have raised concerns about the suspension and its impact on the national debt, while also shying away from updating the gas tax so that it may include electric vehicles, which currently pay nothing towards the Highway Trust Fund, due to their opposition for additional taxes.

Senators Introduce Bipartisan LNG Export Security Act: On May 14, Sens. John Fetterman and John Cornyn (D-PA) introduced the LNG Export Security Act which would prevent presidential administrations from blocking LNG project approvals. The measure would symbolically “rebuke” the Biden administration’s 2024 freeze on new export permits for natural gas, which the Trump administration has retaliated on with pauses on wind, solar and renewable projects. According to a press release,, the bill will amend existing law by defining “public interest” to consider the impact on U.S. natural gas infrastructure development and supply, along with economic and national security interests. No bill text has been released. This comes as the Energy Information Administration (EIA) announced record high energy production in 2025 for crude, natural gas and renewables. According to EIA’s analysis, natural gas production grew by more than 4% from 2024 to 39 trillion cubic feet last year.

House China Committee Introduces Connected Vehicle Security Act: On May 11, House Select Committee on China Chairman John Moolenaar (R-MI) and Rep. Debbie Dingell (D-MI) introduced the Connected Vehicle Security Act (H.R. __), legislation that would prohibit, beginning Jan. 1, 2027, the importation, manufacture, sale or introduction into U.S. commerce of certain “connected vehicles” originating from China, Russia, North Korea and Iran. The legislation defines a “connected vehicle” as one equipped with integrated hardware and software that can communicate through dedicated short-range communication, cellular telecommunications, satellite communications or other wireless spectrum. The legislation also directs the secretary of commerce to establish a declaration of conformity process as well as authorization and waiver procedures, and to initiate a rulemaking to determine whether additional exclusions or exceptions are needed.

Restricting vehicles from foreign adversaries, particularly those manufactured in China, has been a bipartisan priority for policymakers seeking to support domestic manufacturing and limit the import of technologies with potential dual-use applications. In a press release, the committee noted that connected vehicles are capable of collecting and transmitting sensitive location and operational data and, in some instances, may be remotely accessed.

Companion legislation (S.4429) was previously introduced in the Senate in April 2026 and is led by Sens. Bernie Moreno (R-OH) and Elissa Slotkin (D-MI). While immediate next steps for this legislation remain unclear, this legislation could be considered for inclusion in the National Defense Authorization Act (NDAA).

TSA Leader Announced, Additional Transportation Nominees Advance: On May 11, President Trump announced David Cummins’ appointment to lead the Transportation Security Administration (TSA). Cummins most recently served as a senior vice president at government contractor Serco and as an executive at Xerox. TSA has operated without a Senate-confirmed administrator since January 2025 and is currently led by Acting Administrator Ha Nguyen McNeill.

Additionally, the Senate narrowly advanced a cloture motion (S. Res. 690) on five transportation nominees: Seval Oz, to be an assistant secretary of transportation for research and technology; Daniel Edwards, to be an assistant secretary of transportation for aviation and international affairs; Michael Graham, to be a member of the National Transportation Safety Board (NTSB); Richard Kloster, to be a member of the Surface Transportation Board (STB) and Robert Harvey, to be a Federal Maritime commissioner. A final confirmation vote on the nominees is expected in the coming days.

DOT and FAA Publish Proposed Rule on Drone Operations: On May 6, the Department of Transportation (DOT) and Federal Aviation Administration (FAA) issued a proposed rule pursuant to Section 2209 of the FAA Extension, Safety, and Security Act (FESSA) to allow “critical infrastructure sites,” including communications, agricultural and transportation facilities, to apply for restrictions on unmanned aircraft operations near their facilities. The proposed rule would establish two categories of restrictions: a Standard Unmanned Aircraft Flight Restriction (UAFR), which would limit unmanned aircraft operations within a defined boundary except for operators who have met certain safety standards; and a Special Unmanned Aircraft Flight Restriction (Special UAFR), which would prohibit unmanned aircraft operations within a specific boundary for all operators unless authorized by the U.S. government.

According to a release from the FAA, the rule comes as the administration seeks to address an increase of drone activities that may pose a risk to sensitive commercial and government facilities. Public comments on this proposed rule must be submitted by July 5, 2026.

Secretary Hegseth and General Caine Testify before Appropriators: On May 12, Secretary Pete Hegseth, Chairman of the Joint Chiefs of Staff General Dan Caine, and Acting Comptroller Jules Hurst III testified before the House and Senate Appropriations Subcommittees on Defense (HAC-D/SAC-D) to discuss the Department of War’s budget request for fiscal year 2027. Both hearings touched on the war with Iran, the potential for a third reconciliation package focused on defense issues, and concerns with large defense spending during an affordability crisis.

Members of HAC-D met with Secretary Hegseth, General Caine and Acting Comptroller Hurst first. Many expressed frustrations with the $1.5 trillion budget request and the division between discretionary and mandatory spending on high-priority programs. Others called for more detail regarding the cost of the war in Iran, which Acting Comptroller Hurst said the updated cost is estimated to be $29 billion due to repair and operational costs. Subcommittee Chairman Ken Calvert (R-CA) also urged the Trump administration to submit a request for supplemental defense funding.

Senators expressed similar frustrations with the divided budget request, with Subcommittee Chairman Mitch McConnell (R-KY) noting that funding for critical defense programs should not be funded through reconciliation, which is not always politically feasible. They also expressed frustration with the current status of the war in Iran and the closure of the Strait of Hormuz. Sen. Lindsey Graham (R-SC) also expressed his concerns with Pakistan as a credible mediator. Subcommittee Ranking Member Chris Coons (D-DE) and Sen. Jeanne Shaheen (D-NH) also called on the Pentagon to release the spending plan for the FY26 defense appropriations provision that provides $400 million to aid Ukraine with its defense against Russia.

Trump-Xi Summit Expected to Include Discussions on Taiwan Arms Sales: President Trump is in China this week for the highly anticipated Trump-Xi Summit. President Trump is expected to press Beijing for additional Chinese purchases of U.S. agricultural and commercial goods, sustained relief from rare earth controls, diplomatic collaboration with Iran and the Strait of Hormuz, and heightened restrictions against illicit fentanyl precursors. In exchange, Beijing will push for concessions, both politically and on arms sales, on U.S. policy toward Taiwan, U.S. export controls on advanced semiconductors and semiconductor manufacturing equipment (SME), and relaxed visa treatment for Chinese nationals, who have faced alleged discrimination in U.S. customs procedures.

Xi Jinping has repeatedly affirmed that Taiwan is China’s No. 1 priority during the summit. Beijing will press the Trump administration to change its declaratory policy on Taiwan, the same request Xi made of President Biden in 2023. China wants the United States to say it “opposes” Taiwanese independence, rather than the current stance that it “does not support” Taiwan’s independence. On May 11, President Trump signaled openness to discussing active and planned U.S. arms sales to Taiwan with Xi, noting, “President Xi would like us not to [sell arms to Taiwan], and I’ll have that discussion.”

Despite not being mentioned in the official White House readout of the private talks, President Trump and Xi discussed Taiwan. According to the Chinese readout, XI cautioned President Trump that disagreements over Taiwan could send bilateral relations down a dangerous path, possibly even into conflict. Secretary of State Rubio later confirmed that the two leaders discussed Taiwan, but stressed that “U.S. policy on the issue of Taiwan is unchanged … we always make clear our position, and we move on to other topics. We know where they [China] stand, they know where we stand.” According to Secretary Rubio, Xi reiterated that China’s reunification with Taiwan is “something that has to happen at some point.” In response, Secretary Rubio asserted, “it would be a terrible mistake to force that through force or anything of that nature.” He noted that U.S. weapons sales to Taiwan were not featured prominently in discussions as of the May 14 meeting.

U.S. Navy Releases 30-Year Shipbuilding Plan: On May 11, the U.S. Navy released its fiscal year (FY) 2027 Shipbuilding Plan, which provides an outline for the Trump administration’s strategy to strengthen the U.S. maritime industrial base, expand fleet capacity and improve the U.S. naval force. The Shipbuilding Plan requests $65.8 billion for shipbuilding alone, which is in alignment with the Navy’s FY27 budget request. The strategy prioritizes the alignment of shipbuilding investments to the High-Low Mix Strategy and operational demands. It requests funding for 34 manned ships and five unmanned platforms for FY27 and calls for the expansion of the Navy’s inventory to 450 ships—including battle force ships, auxiliary ships and unmanned vessels—by 2031.

Acting Secretary of the Navy Hung Cao said the Shipbuilding Plan helps provide a roadmap for the development of the “Golden Fleet,” while strengthening and improving the maritime industrial base, strengthening the shipbuilding workforce, and improving the Navy’s and the Marine’s capabilities.

CBO Releases Estimate on Golden Dome: Also on May 11, the Congressional Budget Office (CBO) released a new report discussing the estimate of potential costs of the Golden Dome missile defense system. The report estimates that the missile defense shield will cost $1.2 trillion over 20 years, which is six times larger than the Department of War’s estimate of roughly $185 billion. CBO officials noted that their calculations were based on estimates from President Trump’s Executive Order “Iron Dome for America” from January 2025, which are different from the department’s plans for the system. The Pentagon is still developing its strategy for how it will accomplish the missile defense system, so official details still need to be released. As a result, CBO needed to use the EO’s details for its estimate for long-term costs.

Golden Dome was named one of the administration’s top priorities during the SAC-D hearing on May 12, with the FY27 request asking for an additional $17 billion in funding. The Trump administration is also planning to move Golden Dome funding into the base budget following FY27 to not rely on the reconciliation process for long-term support. The Office of Management and Budget (OMB) are also interested in creating a “Golden Dome for America Fund” program line in future defense appropriations.

Secretary McMahon Testifies before House Education and Workforce Committee: Today, Secretary of Education Linda McMahon testified before the House and Education Workforce Committee about President Trump’s fiscal year (FY) 2027 budget request for the Department of Education. The hearing focused on the impact of the new student loan limits and the new professional student definition under the One Big Beautiful Bill Act. Additionally, members asked about the recent interagency agreements and staffing shortages at the Office for Civil Rights.

Accreditation Regulation Released: Today, the Department of Education’s Accreditation, Innovation, and Modernization (AIM) Committee released updated draft regulations in advance of its second session next week. The committee is charged with modernizing and streamlining the regulatory framework, including efforts to ensure the timely approval of new accreditors; require accrediting agencies to use data-driven student outcomes to assess quality; align accreditor standards with federal civil rights laws; strengthen the separation between accrediting agencies and trade associations; and reform transfer-of-credit policies, among other priorities. The committee will meet daily from May 18–22 with the goal of finalizing the regulations. Following the committee's completion, the department is expected to issue a Notice of Proposed Rulemaking (NPRM) to implement these provisions.

House Education and Workforce Sends Letter to Governor Walz about Childcare Funding: Yesterday, House Education and Workforce Chairman Tim Walberg (R-MI) sent a second letter to Minnesota Gov. Tim Walz (D), following up on the committee’s initial January 2026 oversight request regarding the alleged misuse of Child Care and Development Fund (CCDF) funds. The letter states that Minnesota’s response to the initial document request was largely inadequate, noting that many submitted materials were nonresponsive, duplicative, publicly available or heavily redacted. The letter reiterates and expands upon the committee’s requests, seeking more complete and unredacted records, including communications from senior officials and information on highly funded childcare providers, to better assess potential improper payments or misuse of funds and to inform possible legislative improvements to federal childcare programs.

Secretary McMahon Announces Funding for Students with Disabilities: Yesterday, the Department of Education announced a new $144 million investment to help states expand proven interventions that support students with disabilities. These funds will be awarded this year for state and local agencies to use for Individuals with Disabilities Education Act (IDEA) programs. The department also announced new guidance for states to use IDEA funds to help expectant parents of infants with disabilities access information and tools to prepare for their child’s arrival and to secure needed supports and services after birth. Secretary of Education Linda McMahon stated that the “… $144 million increase delivers a substantial expansion of resources for students with disabilities and their families. For the first time, states can allocate funds to help parents receive support even before their child with disabilities is born, giving them accurate information and a direct path to the services their child will need on day one.”

Department of Education Announces Reimagined Comprehensive Centers Program Grant Competition: On Tuesday, the Department of Education announced the FY2026 competition for the Comprehensive Centers Program. The competition solicits proposals to operate a National Center, Regional Centers, Content Centers, including field‑initiated centers that allow applicants to propose priorities based on states’ needs and a National Center on Improving Literacy for Students with Disabilities. In this model, the National Center serves as a centralized hub to help state and local school systems navigate federal technical assistance services and recourse.

Universities Report 20% Drop in Foreign Enrolment: On Tuesday, a report was published highlighting a drop in foreign student enrollment at American universities during the spring 2026 semester. The report surveyed 149 schools and found that there was a 62% total decrease in foreign student enrollment across undergraduate and graduate programs compared to the spring 2025 semester. This is believed to be in response to a number of policies imposed by the Trump administration, including increased student visa restrictions and vetting.

Department of Health and Human Services Releases CCDF Final Rule: On Monday, the Department of Health and Human Services (HHS) released the final rule on Restoring Flexibility in the Child Care and Development Fund (CCDF), which will take effect on July 13. The final rule is largely in line with to the notice of proposed rulemaking (NPRM) and maintains the repeal of the 2024 Biden-era final rule requirements: the 7% copayment cap; prospective payments; payment based on enrollment; and the use of grants and contracts for certain direct services. Additionally, HHS acknowledged several public comments recommending adjustments to the number of paid absence days; however, HHS declined to make changes and will maintain the current limit of five days per month, or 85% of the authorized time. HHS also noted that lead agencies retain the flexibility to implement more generous absence policies that provide full payment to providers even if a child has more than five absences.

Department of Health and Human Services Releases Head Start NPRM: On Monday, the Department of Health and Human Services (HHS) published a notice of proposed rulemaking (NPRM) on Restoring Flexibility to Support Head Start Program Access, which would reverse a majority of the provisions finalized in the Biden-era Head Start rule on Supporting the Head Start Workforce and Consistent Quality Programming. Specifically, the NPRM proposes to remove requirements from the Head Start Program Performance Standards with the goal of restoring flexibility and improving access to quality services. This includes removing requirements related to wages and benefits that the administration believes are not in line with the plain language of the Head Start Act and are costly and overly prescriptive for Head Start programs and staff. Public comments are due by June 11.

Departments of Education and Labor Announce CPE and TQP Grant Competitions: On Monday, the departments of Education and Labor announced the FY 2026 grant competitions for the new Career Pathways Exploration (CPE) program and the Teacher Quality Partnership (TQP) program. CPE is a new competitive program intended to support states in expanding career exploration and workforce readiness efforts, while TQP will focus on strengthening teacher preparation, development and recruitment. This grant announcement builds on the partnership between the departments through an interagency agreement and marks the sixth and seventh grant competitions through the Elementary and Secondary Education partnership.

Bipartisan Senators Request Release of IES Funding: On Monday, Sens. Jeff Merkley (D-OR), Thom Tillis (R-NC) and Elizabeth Warren (D-MA) led a group of 16 additional bipartisan senators in a letter to the Department of Education requesting the release of FY 2025 and 2026 funding for the Institute of Education Sciences (IES). Congress directed $793 million and $789.6 million to IES in FY 2025 and 2026, respectively. The senators emphasized that $290 million that has yet to be distributed is at risk of lapsing on Sept. 30. The senators further emphasized the importance of this funding, noting that it supports rigorous research with demonstrated results.

GAO Releases Pell Grant Report: On Monday, the Government Accountability Office (GAO) released a report on Pell Grants: Overall Student Eligibility Increased After Free Application for Federal Student Aid Simplification. The report found that 9.9 million students were eligible for a Pell Grant in school year (SY) 2024‒25, representing a 6% increase in eligible students and a 31% increase in those eligible for the maximum award of $7,395. GAO attributed this increase to the implementation of the simplified Free Application for Federal Student Aid for SY 2024–25. This comes as the Pell Grant program is slated to face a $5.4 billion shortfall in FY 2026 that is anticipated to grow to $11.5 billion in FY 2027.

Department of Education Announces FSA Hiring Increase: Last week, the Department of Education’s Office of Federal Student Aid (FSA) announced plans to hire 334 full-time employees by 2027, a 45% increase. This comes as FSA experienced some of the largest staffing reductions following a reduction in force (RIF) last March. Under current estimates, staffing levels would total approximately 1,065 employees, down from 1,568 in the previous administration. Despite efforts to streamline the agency, FSA remains responsible for implementing several major initiatives, including new repayment plans, the rollout of Workforce Pell Grants and the phase-out of certain loan programs under the One Big Beautiful Bill Act.

Democrats Introduce CRA to Overturn Department of Education’s Student Loan Final Rule: Last week, House Democrats announced plans to introduce a Congressional Review Act (CRA) resolution to overturn the Department of Education’s student loan rule. This rule, which was finalized in early May, implements many of the One Big Beautiful Bill Act (OBBBA) higher education provisions and is scheduled to take effect on July 1, 2026. The resolution, led by Reps. Suzanne Bonamici (D-OR), John Mannion (D-NY) and Lauren Underwood (D-IL) and Sens. Jeff Merkley (D-OR) and Angela Alsobrooks (D-MD), seeks to repeal the rule’s new aggregate borrowing caps, revised definition of “professional student” and elimination of the Grad PLUS program. They argue that the rule’s narrow definition of professional degree programs and lower borrowing limits will force students in fields such as nursing, social work, teaching and allied health professions to turn to predatory private loans, exacerbating workforce shortages and increasing affordability challenges. They also contend that the rule’s new repayment structure would result in significantly higher monthly payments for many borrowers. The resolution would require a simple majority vote in both the House and Senate and would need to be signed by the president to take effect.

DOJ Found UCLA Uses Illegal Race-Conscious Admissions Practices: Last week, the Department of Justice (DOJ) concluded its investigation into the University of California, Los Angeles’s (UCLA) medical school. DOJ found that UCLA intentionally selected applicants based on their race, pointing to evidence that UCLA believes patients receive the best care when treated by a doctor of the same race, as opposed to the most qualified doctor. The investigation found that admitted Black and Hispanic applicants had lower academic qualifications, compared to White and Asian applicants. DOJ noted it will continue its focus on the illegal use of race in admissions at medical schools.

GAO Recommends Performance Assessment for Preschool Development Grants: In early May, GAO released a report on Pregnancy and Early Childhood: Performance Management Process Needed for Three Programs. GAO found that 242 programs provide benefits and services to pregnant women, children birth through age 5 or their families, and of these, 15 provide direct services exclusively to this population. Further, GAO found that three of the 15 programs have not established a performance management process, including the Preschool Development Grants Birth Through Five Program, administered by the Department of Health and Human Services (HHS). HHS notes there are no federal performance goals because the program monitors progress toward state-defined goals to maximize state flexibility. GAO further noted that a federal process would allow for more accurate measurement of program progress on a national scale. This comes as President Trump proposed eliminating this program in his FY 2027 budget request.

Departments of Education and Treasury Transition Employees: In early May, the departments of Education (ED) and the Treasury announced the transfer of employees within each agency to facilitate the transfer of the defaulted student loan portfolio from ED to the Treasury Department. This follows ED’s announcement of an interagency agreement in March to shift part of the federal student loan portfolio to the Department of the Treasury. Under the agreement, the Treasury Department will assume operational responsibility for collecting on defaulted student loan debt and provide operational support to ED’s efforts to return borrowers to repayment. Seven ED employees will be detailed to the Treasury Department, and two Treasury Department employees will be detailed to ED. This announcement was in response to a letter sent by Sens. Elizabeth Warren (D-MA), Bernie Sanders (I-VT), Ron Wyden (D-OR), Patty Murray (D-WA) and Tammy Baldwin (D-WI), requesting further information on the benefits, cost and projected timeline for transferring the portfolio.

Departments of Education and Labor Announce CGSA FY2026 Grant Competition: In early May, the departments of Education (ED) and Labor (DOL) announced the FY 2026 grant competition for the Competitive Grants for State Assessments (CGSA) Program. This program is intended to enhance the quality of assessment instructions and systems to promote student academic achievement. This builds on the interagency agreement between the departments that integrates ED’s assessment-focused programs to hold schools accountable with similar DOL programs. ED will use the secretary’s supplemental priorities to focus on projects that expand learning opportunities and develop assessment systems aligned with state summative assessments

Departments of Education and Labor Announce Increase in WIOA Integrated Plans: Yesterday, the departments of Education and Labor reported that 21 states have submitted combined Workforce Innovation and Opportunity Act (WIOA) State Plans that integrate Career and Technical Education (CTE) programs, compared to nine states in 2024, marking a significant increase in coordination across education and workforce systems. This builds on the departments’ Workforce Development Partnership, established through an interagency agreement to better align WIOA and CTE responsibilities, and follows joint federal guidance encouraging states to align planning processes, streamline requirements and reduce administrative burden. By combining these programs into a single plan, states aim to better connect education and training with labor market needs, improve efficiency and expand access to effective career pathways. The effort also includes increased use of program waivers to provide flexibility and support innovation.

BLS Releases April Jobs Report: Last Friday, the Bureau of Labor Statistics (BLS) released the April Jobs Report. The report found that employment increased by 115,000 in April, down from 185,000 jobs added in March, but exceeding the 55,000 job forecast. The unemployment rate held at 4.3%, and average hourly earnings increased 0.2% for the month. As in previous months, the health care industry saw the largest increase in jobs with 37,000 new roles, while the labor force participation rate and tech-related jobs continued to decline.

Department of Labor, Office of the Inspector General Collaboration Marks New Era in Stopping Unemployment Insurance Fraud: On May 13, the Department of Labor’s Office of the Inspector General (OIG) announced a new partnership in furtherance of President Trump’s Executive Order (EO) on “Establishing the Task Force to Eliminate Fraud.” The partnership, led by Vice President Vance, will focus on addressing fraud and performance concerns related to the unemployment insurance programs administered across the country. The resources and executive commitment significantly enhance the resources provided to the Office of Unemployment Insurance (OUI) within the Employment and Training Administration (ETA) and the investigative capacity of OIG.

HHS, IRS and EBSA Issue NPRM on Fertility Benefits: Yesterday, the Employee Benefits Security Administration (EBSA), Department of Health and Human Services (HHS) and the Internal Revenue Service announced a notice of proposed rulemaking on Excepted Fertility Benefits. This would create a new category of limited excepted benefits to further expand the ability of employers to offer meaningful fertility benefits to their employees. The proposed rule would build upon President Trump’s Executive Order (EO) on “Expanding Access to In Vitro Fertilization” and establish a new category of limited excepted benefits. The rule requires the benefits to be for diagnosis, mitigation or treatment of infertility or related reproductive health conditions, have a lifetime cap of $120,000 for the participant and their beneficiaries that is indexed for inflation for plan years starting after 2028 and that employers must provide a notice that clearly describes the coverage. 

Trump-Xi Summit Concludes in Beijing: President Donald Trump traveled to Beijing for a bilateral summit with Chinese President Xi Jinping from May 13 to May 15. Although both sides were able to maintain stable trade and economic ties, the summit did not result in substantive progress on key issues, including export controls, Iran, Taiwan and tariffs. Proposed mechanisms for bilateral cooperation remain under negotiation. In recent interviews, U.S. Trade Representative (USTR) Jamieson Greer and Treasury Secretary Scott Bessent outlined initial plans for the establishment of a Board of Trade, a bilateral mechanism aimed at reducing tariffs and trade barriers on roughly $30 billion worth of “non-sensitive” goods. Secretary Bessent also confirmed discussions of a potential Board of Investment, which would identify and facilitate bilateral investments in non-sensitive sectors that are not subject to review by the Committee on Foreign Investment in the United States (CFIUS).

Additionally, commercial purchases of Boeing jets and agricultural products fell short of expectations. President Trump said Beijing agreed to purchase at least 200 Boeing jets, with the possibility of 750 in total purchases if Boeing “does a good job.” Although Boeing 737 Max jets were rumored to be the centerpiece of any commercial deal, neither the president nor senior U.S. officials confirmed details of the transaction. President Trump and USTR Greer also confirmed Beijing’s commitment to a “double digit billion [dollar] purchase” of U.S. agricultural goods. Although the president suggested the commitment centered on soybeans, USTR Greer noted the total figure included additional, unspecified agricultural commodities.

The two sides did not substantively address tariffs, the flow of rare earths or U.S. export controls on semiconductors, despite reporting that the Commerce Department approved a select group of Chinese firms to purchase Nvidia H200 chips. USTR Jamieson Greer characterized Beijing’s performance on rare earth exports as a “passing grade,” citing improved but inconsistent supply flows.

Similarly, the summit did not result in concrete progress on Iran or Taiwan. Both sides affirmed the importance of an open and free Strait of Hormuz but did not advance discussions on China’s purchases of Iranian oil. However, President Trump stated he would consider lifting sanctions on Chinese teapot refineries that process Iranian oil, and U.S. officials suggested Beijing agreed to purchase U.S. energy, such as natural gas. In regard to Taiwan, President Trump declined to answer questions from President Xi regarding U.S. arms sales to the island.

White House Delays Reported Tariff Relief for Beef Imports: As of May 14, the White House delayed plans to issue two executive orders (EOs) on Monday, May 11, aimed at lowering beef prices in a bid to combat rising consumer prices ahead of the midterm elections. According to recent reports, the administration intended to temporarily reduce tariffs on beef imports by suspending the annual tariff-rate quota on all beef-exporting nations. The executive action would also direct the Small Business Administration (SBA) to increase loans for U.S. cattle ranchers and reduce protections for endangered wolves and ear tag requirements. However, the White House delayed action following outcry from U.S. lawmakers and domestic beef producers. The United States is poised to import a record amount of beef, with increased imports coming largely from Brazil, Australia and Canada. Brazil, the top exporter of beef in the world, has begun shipping more beef to the United States following the imposition of new quotas by China. The administration has already taken similar steps to reduce beef prices, having increased quotas for Argentinian beef in February.

CBP Provides Status Update on IEEPA-Based Tariff Refunds: On May 12, Brandon Lord, executive director of trade policy and programs for U.S. Customs and Border Protection (CBP), provided the agency’s latest status report to the Court of International Trade (CIT) on the implementation of its electronic refund system, the Consolidated Administration and Processing of Entries program (CAPE), for tariffs levied under the International Emergency Economic Powers Act (IEEPA). As of 7:00 a.m. EST on May 11, CBP had received 126,237 CAPE declarations, of which 86,874 have been validated. Of the more than 15 million entries accepted, approximately 8 million entries “have subsequently been liquidated and/or reliquidated without IEEPA duties.” For these processed entries, CBP has issued $35.46 billion in refunds, including interest. However, this represents only a small portion of total IEEPA duties collected, and CBP has not provided any information on the deployment of subsequent CAPE phases equipped to process complex entries.

Perfectus Aluminum and Related Companies Settle False Claims Lawsuit: On May 12, the Department of Justice (DOJ) announced that Perfectus Aluminum Inc., Perfectus Aluminum Acquisitions LLC and four affiliated warehousing companies agreed to pay $549.5 million to resolve allegations of violations of the False Claims Act. The companies were accused of “knowingly and improperly evading, or conspiring to evade, antidumping and countervailing duties owed to the United States” by misclassifying more than 2.2 million aluminum extrusions imported from China between July 2011 and June 2014 as finished merchandise, which are not subject to such duties. Specifically, DOJ alleged that the Perfectus defendants “knowingly made, and caused others to make, false statements on Customs Form 7501 Entry Summaries that were material to obligations to pay duties owed to [U.S. Customs and Border Patrol] CBP.” The case underscores the DOJ’s broader trade enforcement efforts, elevated by the establishment of a cross-agency Trade Fraud Task Force in August 2025.

CIT Invalidates Section 122 Tariffs; Appeals Process Underway: On May 7, the Court of International Trade (CIT) held in Burlap and Barrel, Inc. v. Trump that the tariffs President Trump imposed under Section 122 of the Trade Act of 1974 were invalid. Section 122 authorizes the president to impose temporary import quotas and surcharges of up to 15% on any country or group of countries with whom the United States has a “large and serious balance-of-payments deficit.” In late February, President Trump invoked the statute to impose a 10% tariff on most imports, shortly after the Supreme Court invalidated his use of the International Emergency Economic Powers Act (IEEPA) to establish a reciprocal tariff regime.

The divided three-judge panel held that the White House exceeded its statutory authority by failing to demonstrate the existence of a balance-of-payments deficit. Instead, Proclamation 11012 relied on evidence of “current account deficits, and a discussion of ‘a large and serious trade deficit,’” which the court found insufficient to justify tariff measures under Section 122. As a result, CIT issued a permanent injunction barring future collection of Section 122 tariffs and ordering refunds of duties paid. However, the relief is limited to the two litigants in the case, Burlap and Barrel, Inc. and Basic Fun, Inc., and the State of Washington. It is not a nationwide injunction. The court determined that the remaining State plaintiffs lacked standing, stating they “[failed] to demonstrate an injury-in-fact.” Given that CIT did not issue a nationwide injunction, other importers seeking relief from Section 122 tariffs are likely to file lawsuits in the CIT.

The Department of Justice (DOJ) quickly appealed the decision, requesting that both CIT and the U.S. Court of Appeals for the Federal Circuit enter a stay order to keep the tariffs in effect while the appeals process moves forward. On May 12, the appellate court temporarily stayed the CIT decision “until further notice while this court considers the motions for a stay pending appeal.” CIT has separately directed the plaintiffs to respond to DOJ’s stay request by May 19. In the meantime, U.S. Customs and Border Protection (CBP) will continue to collect Section 122 tariffs while the administration continues to move forward with numerous Section 301 investigations. The results of those investigations, including related tariffs, are expected this summer.

USTR Holds Public Hearings on Section 301 Probe Regarding Structural Excess Capacity: Last week, the Office of the U.S. Trade Representative (USTR) held four-day public hearings as part of its Section 301 investigations into structural excess capacity and production in manufacturing sectors. The agency initiated the investigations in March, shortly after the Supreme Court invalidated tariffs under IEEPA.
 
More than 800 stakeholders representing a wide range of industries filed public comments on the probe. During the hearings, 149 panelists were given the opportunity to testify on whether a given economy is employing unfair practices, such as subsidized lending or currency manipulation, to create and maintain excess capacity in key sectors, such as steel and aluminum. The only governments directly represented at the hearings were India, Indonesia, Mexico, South Korea and Vietnam. The Chinese government also sent a representative from the China Chamber of International Commerce, an organization operating under the Ministry of Commerce.
 
The written comments and public testimony will inform USTR’s assessment of whether countries’ actions constitute Section 301 violations, in which case the statute requires mandatory U.S. trade restrictions equivalent in value to the burden imposed by the investigated country. After the public hearings, USTR is not required to conclude the investigations within a specific time frame. However, the Trump administration has indicated it intends to finalize the ongoing investigations by the end of July, when the 10% Section 122 tariff in effect on almost all trading partners is set to expire.

President Trump Warns EU to Implement Trade Deal or Face Higher Tariffs: On May 7, President Trump threatened to increase tariffs on the European Union (EU), should the bloc fail to implement the Framework on an Agreement on Reciprocal, Fair, and Balanced Trade by July 4, 2026. As part of the agreement, the EU committed to eliminating tariffs on U.S. industrial goods. However, implementation has stalled as the European Parliament and several EU member states push for the inclusion of safeguards to protect European industries from surges in U.S. imports or uncertainty stemming from the Trump administration’s trade agenda. In a social media post, the president warned that the bloc has “until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels.” A week earlier, President Trump separately criticized the EU for “not complying with our fully agreed to Trade Deal,” threatening to increase Section 232 tariffs on European autos and related parts from 15% to 25%, the rate imposed on most other nations.

The European Commission, European Parliament and Council of the EU, composed of EU member states, continue to engage in trilateral negotiations to reach a consensus position regarding the implementation of the trade deal. Most recently, EU Trade Commissioner Maroš Šefčovič asserted the group had made “considerable progress” toward implementing the deal, but EU Parliament Trade Chair Berd Lange cautioned that “there is still some way to go.” 

First BEAD-Funded Tower Activated: On May 13, Nextlink Internet announced that the first tower funded through the federal Broadband Equity, Access and Deployment (BEAD) program was activated on May 1, 2026, in Bienville Parish, Louisiana. This tower will provide gigabit-speed internet to homes and businesses across northwest Louisiana. According to a release from NextLink, this tower is funded through an $18.5 million Louisiana BEAD subgrant to Nextlink, with additional infrastructure to follow, which will result in gigabit-class fixed wireless infrastructure to 7,460 unserved and underserved locations across Louisiana.

The BEAD program, originally established through the Infrastructure Investment and Jobs Act (IIJA), set aside $42.45 billion in federal grants to provide every American with high-speed internet. Since its establishment, the program has faced criticisms for its regulations and lengthy approval timelines, resulting in the Trump administration instituting “Benefit of the Bargain” reforms to eliminate non-statutory requirements.

Technology CEOs Join President Trump’s Trip to China: This week, President Trump traveled to China to attend a bilateral meeting with President Xi Jinping, where it is reported that the leaders will primarily discuss trade. This trip will be the first time a U.S. president has visited China in nearly a decade, with the last visit being President Trump in 2017. Unlike past bilaterial meetings, President Trump has invited prominent technology leaders to join on this trip, including Elon Musk (Tesla/SpaceX), Jensen Huang (Nvidia) Tim Cook (Apple), Sanjay Mehrotra (Micron Technology), Dina Powell McCormick (Meta) and Cristiano Amon (Qualcomm).

Senate Passes 988 Lifeline Location Improvement Act: On May 11, the Senate unanimously passed the 988 Lifeline Location Improvement Act (S. 3199), legislation sponsored by Sens. John Barrasso (R-WY) and Ben Ray Lujan (D-NM) that would improve the efficiency of the 9-8-8 hotline. Specifically, the legislation would instruct the Federal Communications Commission (FCC) to open a Notice of Inquiry (NOI) to address the challenges to transmitting geolocation information with calls to the 9-8-8 hotline, direct the FCC to make the hotline more accessible for callers with disabilities and require the Government Accountability Office (GAO) to conduct a study on the opportunities and challenges related to implementing geolocation for individuals who are deaf, hard of hearing or have hearing loss. In a press release, Sen. Barrasso commented that this legislation will “better connect callers with local emergency services through geolocation information” and urged the House to pass similar legislation.

The legislation will now be sent to the House, though there is not yet companion legislation introduced.

Senate Judiciary Holds a Hearing on Landmark Social Media Verdicts: On May 13, the Senate Judiciary Subcommittee on Privacy, Technology and the Law held a hearing examining recent court verdicts against major technology companies and their implications for child safety and congressional action. Lawmakers and witnesses argued that social media companies intentionally designed platforms to maximize children’s engagement and advertising revenue despite internal evidence linking their products to addiction, mental health harms, exploitation and drug sales. Senators from both parties criticized companies such as Meta for allegedly misleading Congress, suppressing research and relying on Section 230 protections to avoid liability, while witnesses emphasized that platform design, not just content, is driving harm. Members repeatedly called for reforms or repeal of Section 230, expanded transparency and whistleblower protections, and passage of legislation such as the Kids Online Safety Act (KOSA) to impose stronger safety requirements on platforms. Witnesses and senators also stressed that litigation has exposed internal company practices, but argued that court victories alone are insufficient without broader federal legislation and regulatory oversight to protect children and hold technology companies accountable.

Sen. Cruz Speaks to Passage of KOSA: This week, Sen. Ted Cruz (R-TX), chairman of the Senate Commerce, Science and Transportation Committee, indicated the committee will pass the Kids Online Safety Act (KOSA). He said, “we are going to work hand in hand with the House to get it passed through the House and get it put on the president’s desk and signed into law.” He was speaking to a group of advocates for the bill. Sen. Marsha Blackburn (R-TN) and Richard Blumenthal (D-CT), other proponents of the legislation, were also in attendance. While the Senate version of KOSA has over 70 bipartisan co-sponsors, the House bill sports only Republican support and has a much more difficult path to passage.

Lawmakers Question OpenAI and Meta on Bias: Reps. Mike Lawler (R-NY) and Josh Gottheimer (D-NY) authored a letter to executives at X, OpenAI, Microsoft, Meta, Google, Anthropic and Perplexity about how their large language models (LLMs) handle political questions and bias. Specifically, the letter focused on the role of artificial intelligence (AI) in the 2026 midterm elections, anticipating Americans’ use of AI tools to research candidates and ballot measures. The questions center around training datasets, internal mechanisms to address bias, disclosures about political information, and more.

Senate Judiciary Committee Holds an Oversight Hearing for U.S. Copyright Office: The Senate Judiciary Subcommittee on Intellectual Property held an oversight hearing on the U.S. Copyright Office focused on copyright law, artificial intelligence (AI), piracy and international copyright enforcement, with Register of Copyrights Shira Perlmutter testifying. Chairman Thom Tillis (R-NC) emphasized the economic importance of strong copyright protections and argued Congress must balance AI innovation with protections for creators whose works are used to train models, while Ranking Member Adam Schiff (D-CA) highlighted concerns over generative AI systems training on copyrighted material without consent or compensation and promoted transparency legislation like the CLEAR Act. Perlmutter said fair use remains the appropriate framework for evaluating AI training but acknowledged its unpredictability and the likelihood that courts, potentially the Supreme Court, will ultimately provide clarity. She expressed support for licensing markets and transparency measures such as the TRAIN Act, while also discussing concerns about foreign digital piracy, the rise of no-fault injunctions internationally, and the importance of preserving the Copyright Office’s independence within the legislative branch. Senators also discussed AI-generated works and copyright eligibility and the NO FAKES Act.

Senate Banking Advances Crypto Market Structure Bill: Months after its initial markup was postponed, the Senate Banking Committee completed its markup of the amended CLARITY Act (H.R. 3633) Thursday. In the early hours of Tuesday morning, the committee released the updated bill as an amendment in the nature of a substitute (AINS), which served as the base text for the markup. The AINS includes the high-profile provision on stablecoin yield crafted by Sens. Thom Tillis (R-NC) and Angela Alsobrooks (D-MD), which has sparked pushback from the banking industry for not being strict enough. Additionally, Sen. Cynthia Lummis (R-WY) and Senate Judiciary Committee Chairman Chuck Grassley (R-IA) came to an agreement on the Blockchain Regulatory Certainty Act, with language intended to address law enforcement concerns related to illicit finance controls. The measure also included the BUILD NOW Act—a provision from the Senate-passed 21st Century ROAD to Housing Act (H.R. 6644) that would increase localities’ Community Development Block Grant (CDBG) funding based on their housing development metrics. 

The market structure bill advanced out of committee by a bipartisan 15-9 vote—with Sens. Ruben Gallego (D-AZ) and Alsobrooks supporting the bill. The other Democrats voted against the bill mainly because it did not include ethics-related provisions applicable to members of Congress and executive branch officials. During the markup, senators from both parties acknowledged further changes to the bill will need to be made before final passage. 

Trump, Vance Endorse 21st Century ROAD to Housing Act: President Trump posted on Truth Social Monday night, calling on Congress to pass the Senate-passed 21st Century ROAD to Housing Act (H.R. 6644). Vice President Vance followed with his own post urging the House to advance the bill. Both the president and vice president highlighted the bill’s provision that would prohibit large institutional investor purchases of single-family homes. Even with the White House’s public endorsement, the bill’s path forward remains uncertain. 

Late Wednesday evening, the House Financial Services Committee released an amended version of the bill that the House could vote on under suspension of the rules as early as next week. The new version of the bill amends the Senate-passed bill. Notably, it strips out certain provisions in Section 901 of the bill that would have required the disposition of build-to-rent (BTR) homes after seven years. 

White House Nominates New NCUA Board Member, Treasury Deputy Secretary: On Monday evening, the White House sent a slate of nominations to the Senate, including John Crews to serve as a member of the National Credit Union Administration (NCUA) Board and Francis Brooke to serve as deputy secretary of the treasury. Crews, currently deputy assistant secretary for financial institutions policy at the Treasury Department, was nominated to fill the seat held by current NCUA Chairman Kyle Hauptman, who is expected to depart the agency to serve as a member of the Public Company Accounting Oversight Board (PCAOB) once his successor is confirmed. If confirmed, Crews would be the only active member of the NCUA Board and would be positioned to lead the agency. Meanwhile, former NCUA Board members Todd Harper and Tanya Otsuka’s case against Treasury Secretary Scott Bessent remains before the D.C. Circuit, where the appeal is currently held in abeyance pending the Supreme Court’s decision in Trump v. Slaughter.

Francis Brooke has been performing the duties of deputy secretary of the treasury on an acting basis for roughly the past month. He was previously the acting undersecretary for international affairs and an assistant secretary for international trade and development.

HFSC Holds Six Bill Markup: On Wednesday, the House Financial Services Committee held a markup of six bills—the lone committee meeting this week. The committee advanced two measures focused on artificial intelligence (AI) in financial services: the AI PLAN Act (H.R. 2152), which would require a joint report from the Treasury Department, the Department of Homeland Security (DHS) and the Department of Commerce on national security risks posed by AI-enabled financial crimes, and the Unleashing AI Innovation in Financial Services Act (H.R. 4801), which would require financial regulators to establish AI innovation labs and regulatory sandboxes. The committee also marked up two fraud-related bills: the GUARD Act (H.R. 2978), which would allow state and local law enforcement to use existing federal grant programs to fund training on how to combat fraud schemes, and the Bank Fraud Technology Advancement Act (H.R. 8671), which would direct the prudential regulators to study the use of AI and machine learning in fraud detection, with a focus on smaller banks and credit unions. Finally, the committee will consider the FUTURES Act (H.R. 8278), which would require financial regulators to assess whether their supervisory technologies support real-time oversight, and the Price Stability Act (H.R. 5396), which would replace the Federal Reserve’s dual mandate with a single mandate focused on price stability.

Warsh Confirmed as Fed Chairman: On Wednesday, Federal Reserve Chair nominee Kevin Warsh was confirmed to be chairman of the Federal Reserve by a 54-45 vote—garnering support from all Republican senators and Sen. John Fetterman (D-PA). Warsh’s term as chairman officially began earlier today. Current Chairman Jerome Powell announced last week that he will remain as a governor “for a period of time, to be determined” once the Department of Justice (DOJ) investigation is “well and truly over, with finality and transparency.” This decision drew criticism from Treasury Secretary Scott Bessent, who called the decision “highly unusual” and a “violation of all Federal Reserve norms.” Powell’s term as a governor does not expire until January 2028. 

Senate Votes Down CFPB Guidance CRA Resolutions: This week, the Senate voted against individual Congressional Review Act (CRA) resolutions targeting elements of the Trump Consumer Financial Protection Bureau’s (CFPB) May 12, 2025, guidance withdrawal rule, which rescinded a broad range of CFPB interpretive rules, policy statements, advisory opinions and circulars. Over 30 Senate Democrats signed discharge petitions to move the CRA resolutions, which allow for expedited consideration on the Senate floor. A CRA resolution requires only a simple majority to pass. However, all of the resolutions did not pass, with many being rejected by voice vote. 

House to Advances Four HFSC Bills Under Suspension: On Tuesday, the House passed four bills under suspension of the rules that advanced out of the House Financial Services Committee. The House advanced two bills that would reduce the frequency with which certain well-capitalized financial institutions are subject to regulatory supervision: the Supervisory Modifications for Appropriate Risk-based Testing (SMART) Act (H.R. 4437) and the Tailored Regulatory Updates for Supervisory Testing (TRUST) Act (H.R. 4478). The House also passed the Advancing the Mentor-Protégé Program for Small Financial Institutions Act (H.R. 3709) and the Save Our Shrimpers Act (H.R. 2071). 

Turner Testifies on HUD Budget Request: Department of Housing and Urban Development (HUD) Secretary Scott Turner testified before the House Appropriations Committee Tuesday and before the Senate Appropriations Committee on Thursday regarding HUD’s budget request for fiscal year (FY) 2027. The FY 2027 budget request proposes a $73.5 billion discretionary budget, a nearly $10 billion decrease from what was enacted in FY 2026. The majority of cuts stem from reductions in HUD’s Community Planning and Development Programs, with no funding requested for any community development or HOME Investment Partnerships programs

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