Weekly Update 6/01/2026
Weekly Update 6/01/2026 Capitol Advocacy Partners
OMB Grant Administration Update
The 3 goals of OMB’s rewrite of grants regulations: OMB released a proposed update to 2 CFR 200, the federal government's Uniform Guidance for grant administration, marking the second major revision in two years. The proposal is intended to (1) strengthen transparency and accountability in federal grantmaking, (2) align grant administration with current federal policy priorities, and (3) streamline and standardize grant regulations across agencies to reduce administrative burden on recipients and federal grantmakers. Key changes include requiring senior political appointees to review discretionary grant awards…
President and Administration:
Judge temporarily blocks administration's anti-weaponization fund: Senate Republican leaders delayed a vote on a package to fund Immigration and Customs Enforcement (ICE) until June, in part because of concerns with the $1.776 billion Anti-Weaponization Fund, which a federal Judge in Virginia temporarily blocked on May 29. U.S. District Judge Leonie Brinkema barred the administration from transferring, claiming, or disbursing any funds until at least June 12. The judge acted before the administration had formally established the fund, citing concern that disbursements could become irreversible before the court could weigh a legal challenge filed by the group Democracy Forward. As of June 1, the President is retreating from the fund after the fierce backlash, with White House…
The President pushes a record defense budget split between appropriations and reconciliation: A proposed $1.5 trillion defense budget for fiscal year 2027 is testing congressional appetite for a second round of partisan reconciliation spending, with the President seeking $1.1 trillion through the regular appropriations process and an additional $350 billion through reconciliation. The request for reconciliation would fund priorities including $18 billion for the Golden Dome missile…
Appropriations:
Senate panel begins fiscal year 2027 markup process: Three fiscal year (FY) 2027 spending bills are (running from October 1, 2026, to September 30, 2027) headed to the Senate floor for debate, with the Appropriations Committee announcing markups on the Agriculture-FDA, Legislative Branch, and Commerce-Justice-Science measures on Thursday June 4th. The Commerce-Justice-Science bill is particularly relevant to CAP clients, as it funds public safety, scientific research…
Congress:
Senate closes in on FISA renewal ahead of June 12 deadline: Months of failed attempts to reauthorize a key government surveillance authority may be nearing resolution, with Senate negotiators hoping to finalize bill text as soon as June 2. The Foreign Intelligence Surveillance Act (FISA) renews the government's authority to surveil foreign targets abroad for three years, without requiring a warrant to search Americans' data that gets swept up in the process. Senate Intelligence Committee Chair Tom Cotton (R-AR) and Vice Chair Mark Warner (D-VA) are leading talks on extending Section 702 of the FISA, set to expire June 12. The forthcoming legislation…
JCT releases technical report on Republicans' 2025 tax law: Roughly a dozen technical errors in the One Big Beautiful Bill Act, which extended and expanded 2027 tax cuts, are flagged in a new report from the nonpartisan Joint Committee on Taxation JCT). Problem areas include a new deduction for seniors aged 65 and older designed to reduce taxable income for retirees on fixed incomes; the President’s Accounts; revised state and local tax (SALT) deduction rules…
Bipartisan Senate deal takes shape on college sports: Various conflicting state laws governing college sport compensation and transfer have produced what lawmakers describe as an unregulated semi-professional market, prompting Senate negotiators to advance federal legislation after the House pulled a similar bill from the floor following bipartisan revolt. Senate Commerce, Science, and Transportation Committee Chair Ted Cruz (R-TX) and Ranking Member Maria Cantwell (D-WA) introduced…
Hearings:
On Tuesday, the Senate Appropriations Subcommittee on Department of Homeland Security is expected to hold a hearing examining proposed budget estimates and justification for fiscal year 2027 for the Department of Homeland Security.
Note: A portion of the funding for FY26 for Immigration Customs Enforcement (ICE) is still pending.
On Wednesday, 6/3, the Senate Committee on Environment and Public Works is expected to hold a hearing examining the President's proposed budget request for fiscal year 2027 for the Federal Highway Administration.
On Wednesday, the Senate Committee on Health, Education, Labor, and Pensions is expected to hold a hearing examining gender transition procedures on minors.
On Wednesday, the Senate Judiciary Subcommittee on Constitution is expected to hold a hearing examining protecting American citizenship, focusing on denaturalization and its constitutional limits.
California:
Medi-Cal enrollment freeze for undocumented adults survives legislative challenge: Efforts to reopen Medi-Cal to new undocumented adult enrollees stalled last week after amendments gutted the core of a bill aimed at reversing Gov. Gavin Newsom's enrollment freeze. State Sen. Maria Elena Durazo (D-Los Angeles) declined to bring Senate Bill 1422 to a vote after the Appropriations Committee replaced immediate enrollment restoration with a study requirement and a phase-in by age starting at 49. Durazo's…
California cap-and-invest program extended with industry concessions: Affordability concerns reshaped California's signature climate policy last week when the California Air Resources Board (CARB) voted 10 to three to extend the state's cap-and-invest program through 2045 with significant concessions to oil refineries and other industries. The centerpiece of the overhaul is a new incentive program allowing companies to offset permit obligations by investing in lower-emission technologies…
State Senate panel rejects Newsom's climate spending plan: In a rebuke of pending California Air Resources Board changes, state senators voted last week to block Gov. Newsom's proposed spending plan for the Greenhouse Gas Reduction Fund (GGRF), which receives roughly $3 billion to $4 billion annually from carbon permit auctions. The Senate Budget Subcommittee…
Bill to expand California Air Resources Board's CARB regulatory authority dies in Assembly: For the second time, Assemblymember Robert Garcia's effort to give state air regulators authority over emissions from warehouses, ports, trucks, and trains fell short last week when Assembly Speaker Robert Rivas declined to bring AB 1777 to a floor vote. The bill would have extended the CARB’s indirect source rule authority statewide, a concept that gained traction after the…
Newsom's final budget navigates surplus and structural deficit: Despite a $16.5 billion revenue windfall driven by tech sector growth, California faces an anticipated $22 billion deficit in 2027-28, complicating the governor's final budget proposal. The $350 billion May revision introduces roughly $2 billion in new cuts while preserving major health and education funding, relying on reserves, borrowing, and earmarked surplus funds to cover the gap. Newsom has staked out a no-new-taxes position consistent…
Newsom signs election protection measure ahead of June primary: Uniformed law enforcement cannot disrupt election proceedings or seize voter rolls and ballots without a court order under legislation signed May 27 by Newsom. The bill was fast-tracked after Riverside County Sheriff Chad Bianco moved to seize ballots during a special election last year, and in…
Teen social media ban clears California Assembly: A bipartisan majority in the California Assembly voted last week to prohibit children under 16 from holding accounts on social media platforms state regulators deem "addictive," advancing a measure backed by Gov. Gavin Newsom and Assembly Speaker Robert Rivas. AB 1709, authored by Assemblymember Josh Lowenthal (D)…
Education:
U.S. Department of Education finalizes "Promoting Patriotic Education" priority: The Department of Education finalized a new grant priority focused on civics, founding documents, and primary-source-based instruction, effective June 22. The priority may be used in discretionary grant competitions across the Department. The final rule reflects revisions…
College oversight revamp could increase costs for accreditors and schools: A new Education Department rule set to take effect July 1, 2027, would significantly expand what accreditors are required to oversee, adding responsibilities around civil rights compliance, First Amendment standards, academic freedom, and mandatory cost-benefit analyses of school…
Administration again proposes elimination of rural education fund, a move Congress rejected last year: Small districts across the country may lose a direct federal funding lifeline if the administration succeeds in folding the Rural Education Achievement Program (REAP) into a $2 billion block grant alongside 16 other funding streams. Congress approved $220 million for REAP this year. Rural superintendents say the program does not require competitive grant applications…