This week Congress is considering a series of bills aimed at perceived international rivals in the eastern hemisphere. These include rebuking China for a variety of human rights abuses, such as alleged organ harvesting, human trafficking, and ongoing genocide of the Uighur people. Lawmakers will also consider maintaining sanctions on Iran that are set to expire, and strengthening our relationships with regional allies. 

President Trump has sent his proposed budget outline to Congress for fiscal year 2026 that proposes significant cuts, including a 22.6% reduction in the non-defense discretionary budget to $163 billion, while increasing the defense budget by 13% to $1.01 trillion. Key cuts include the Department of Energy (DOE) by 18.2% ($4.7 billion), the Environmental Protection Agency (EPA) by 54.5% ($5 billion), and the Department of Health and Human Services (HHS) by 26.2% ($33.3 billion). The budget also proposes cutting $2.5 billion from DOE’s Energy Efficiency and Renewable Energy (EERE) program and $260 million from the Advanced Research Projects Agency-Energy (ARPA-E). The IRS faces nearly $2.5 billion in cuts, with the administration arguing that eliminating certain complex tax credits could increase efficiency. The budget emphasizes "achieving American energy dominance" and proposes redirecting funds from renewable energy to fossil energy, critical minerals, and nuclear fuels. As a reminder, the president’s budget is only a recommendation.

Before Congress recessed for Easter, Republicans passed the budget resolution, which enables them to begin drafting a budget reconciliation bill which will ultimately carry President Trump’s priorities, including extension of the 2017 tax cuts. Each committee must now determine what spending cuts will be necessary and what new revenue opportunities exist to help pay for these priorities. Last week for example, the House Transportation and Infrastructure Committee advanced its reconciliation provisions after boosting a proposed fee on electric vehicles to $250 and added a fee on hybrid vehicles of $100. These fees are meant to ensure Electric Vehicles are paying into the Highway Trust Fund, which historically has been largely funded through motor fuel excise taxes. 

Committee meetings of interest this week:

House Appropriations Subcommittee on Energy and Water Development, Budget Hearing at 10:00 am on Wednesday, (details here)

House Committee on the Budget, the Fiscal State of the Nation at 10:00 am on Wednesday, (details here)