This week, the House floor will take up a variety of bills, including legislation providing additional support to law enforcement officers, renaming national parks, providing free national park access to veteran families, and enabling the conveyance of federal lands.

Treasury Secretary Scott Bessent announced on Friday that the government has until August to pay its obligations or risk breaching the debt ceiling. Senate Majority Leader John Thune (R-SD) has called this the "real deadline" to pass the reconciliation bill, which will likely include a provision to increase the national debt limit. The amount could be increased beyond what is minimally necessary to meet existing debts and could be raised even higher if Republicans are unable to get the votes for substantial spending cuts to fund President Trump's "big, beautiful" reconciliation bill.

Three House committees – Ways and Means, Energy and Commerce, and Agriculture – are set to begin marking up key portions of the reconciliation bill today (Tuesday, May 13). The Ways and Means Committee released an abbreviated version of its legislative recommendations on Friday, with a full document expected this week and additional amendments to follow. In addition to making permanent many of the 2017 tax cuts, the measure proposes the termination or phase out of several clean-energy credits. Among them is the 25C tax credit for home efficiency improvements, which includes up to $600 for the installation of qualifying liquid- and gas-fired furnaces and boilers.

NEFI has learned the committee is considering substantial changes to the Clean Fuel Production Credit (45Z). NEFI's supports H.R. 3137, which would extend the Biodiesel and Renewable Diesel Blender's Tax Credit (40A) for two years and serve as a necessary bridge to any changes made to 45Z. This would allow adequate time to implement proposed changes and for the markets to adjust. Note, however, the situation remains fluid. NEFI has issued a call to action allowing you to express support to Congress for this legislation.

The House Natural Resources Committee approved its portion of the reconciliation bill last week after rejecting 75 amendments offered by Democrats which were intended to strip the bill of provisions that support increased mining, oil, and natural gas production on public lands.

House Speaker Mike Johnson has set a Memorial Day deadline for floor consideration of the broader reconciliation package. This schedule remains optimistic, particularly as House Republicans remain divided over several issues including an increase to the current $10,000 cap on the State and Local Tax Deduction (SALT), a recent proposal to raise the tax rate on millionaires, and how much the bill should add to the U.S. deficit (if at all). Meanwhile, the Senate is preparing its own counter proposal to the House package.

In other news, on Friday last week, President Trump signed into law four bills passed under the Congressional Review Act (CRA) that overturn Biden-era efficiency rules. These rules sought to improve efficiency for household water heaters, walk in freezers, and commercial refrigerators and freezers, as well as labeling requirements for consumer products.

Committee meetings of interest this week:

Ways and Means Reconciliation Markup, on Tuesday at 2:00pm ET (details here)

Energy and Commerce Reconciliation Markup, on Tuesday at 2:00pm ET (details here)

Agriculture Reconciliation Markup, on Tuesday at 7:30pm ET (details here)

Appropriations subcommittee hearing with HHS Secretary Robert F. Kennedy, Jr. on Wednesday at 9:30am ET (details here) Note: Proposed elimination of LIHEAP could be discussed.

Appropriations subcommittee hearing with Transportation Secretary Sean Duffy on Wednesday at 10:00am ET (details here)

Appropriations subcommittee hearing with EPA Administrator Lee Zeldin on Wednesday at 10:00am ET (details here)