This Week in Congress

Congress was in session this week with a mix of appropriations, oversight, national security, and natural resource legislation, signaling a busy return to work for both chambers of Congress. The House voted on the following:

• Agriculture appropriations (H.R. 8646)

• Bills aimed at strengthening congressional oversight of:

      o Federal education programs (H.R. 8646)

      o Childcare programs (H.R. 7726)

      o Welfare programs (H.R. 8872)

Additionally, the House voted on 15 bills emerging from the Natural Resources Committee focusing on federal land management. Highlights include:

• Geothermal energy permitting and leasing reforms (H.R. 1687, H.R. 5631)

• Extension of authority for the Bureau of Land Management to collect oil and gas drilling permit fees (H.R. 7831)

• Federal land transfers into tribal trusts in:

      o Alaska (H.R. 41)

      o California (H.R. 5682)

      o New Mexico (H.R. 6162)

Finally, the House voted on War Powers resolutions regarding Iran (H. Con. Res. 86) and Lebanon (H. Con. Res. 84), as well as a bill brought to the floor by discharge petition to authorize aid to Ukraine (H.R. 2913).

The Senate voted on the Iran War Powers resolution (S. J. Res. 185), consideration of the Reconciliation 2.0 bill, and a preliminary procedural vote on legislation to extend FISA Section 702 authorities. Additionally, the Senate schedule included votes related to the confirmation of nominees from the Trump administration.

Ag Labor Update: H-2A Reform and Upcoming Developments

Ag Chair GT Thompson is finalizing legislation to reform the H-2A visa program. While the bill has not been officially released, a draft was recently leaked to the press. Last week, NMPF’s Immigration Task Force reviewed the bill and is prepared to endorse it upon introduction. The Ag Workforce Coalition also decided to support it. Rep. Thompson’s team plans to begin gathering co-sponsors next week, with bill introduction expected in late June or early July.

Key anticipated provisions include:

• Access for dairy operations by removing the seasonal employment requirement

• Narrow waiver for unlawful presence to address current workforce gaps

• Streamlined H-2A processes to reduce regulatory and financial barriers

Separately, President Trump is reportedly visiting dairy farmers in Chippewa County, Wisconsin, this Friday. Early reports suggest he may announce an agriculture labor initiative favorable to the dairy industry. More to follow!

Agricultural Equipment Tariffs Lifted?

The White House announced it will reduce tariffs on agricultural equipment, including combines and harvesters, in an effort to lower costs for U.S. farmers and manufacturers.  Under a proclamation issued late Monday, tariffs on these products will be reduced from 25% to 15%, effective June 8 through the end of 2027.

The administration cited rising global market pressures as a key factor in the decision. Turmoil in the Persian Gulf, including disruptions near the Strait of Hormuz—through which nearly 10% of global aluminum supply flows—has contributed to volatility in commodity markets. Diesel prices have also increased since the start of the Iran conflict, adding further cost pressures across the agricultural and industrial sectors.

In the proclamation, President Trump pointed to the impact on domestic industries, stating that recent global developments have affected producers and users of agricultural and industrial equipment.

Reconciliation 3.0 or End-of-Year Tax Deal Takes Shape in Congress

House Republican leaders are continuing discussions around a potential “reconciliation 3.0” package, exploring a mix of policy priorities that could be advanced later this year. Budget Committee Chairman Arrington (R-TX) has indicated the package could include defense funding, efforts to reduce fraud in federal spending programs, and measures aimed at improving housing and healthcare affordability.

However, the timeline for advancing a third partisan reconciliation bill is increasingly constrained. Delays in moving the reconciliation 2.0 package have narrowed the available legislative window ahead of the midterm elections. With both chambers expected to recess in August and October for campaign season, and September largely focused on preventing a government shutdown ahead of the October 1 fiscal year deadline, floor time will be limited.

Republicans could instead attempt to advance a third reconciliation package during a post-election lame duck session. But that path remains uncertain, depending heavily on election outcomes and potential attendance challenges as departing members wind down their terms.

If reconciliation 3.0 does not move forward, attention is likely to shift toward a bipartisan end-of-year omnibus package, which could become the most viable vehicle for extending or enacting key tax provisions.

FY 2027 Appropriations: House Advances Bills as Senate Begins Markups

Congress is continuing work on FY 2027 appropriations, with the House Appropriations Committee having reported out seven of its 12 spending bills so far. The House has also passed one of those measures, marking early progress in the annual funding process.

In the Senate, appropriators are expected to begin marking up their own spending bills this week, even though a bipartisan agreement on interim subcommittee funding allocations has not yet been reached. Because appropriations bills require 60 votes to advance in the Senate, the process typically proceeds on a bipartisan basis.

While it is unusual for the committee to hold markups without an agreement on spending levels, it is not unprecedented. The move is widely seen as a sign that lawmakers may not reach a broader budget agreement before the upcoming elections, increasing uncertainty around the path forward for FY 2027 funding.

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