June 1, 2026 | Capitol Hill Weekly
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This update reflects facts as of Monday morning, June 1, 2026. The situation is fluid and may change.
As Congress begins a busy five-week session before Independence Day, it will resume consideration of the pending reconciliation bill that would provide additional funding for immigration enforcement. Congress will also need to address the impending expiration of an important provision of the Foreign Intelligence Surveillance Act (FISA), and it would also like to complete work on a bipartisan bill to address housing affordability. International issues are also on the agenda, as the House will soon face a vote on additional aid to Ukraine and another War Powers Act resolution on Iran. Whether Congress will also address the related issue of gasoline prices with a suspension of the excise tax is an open question.
Reconciliation legislation. A Republican bill to provide an additional $72 billion for Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) once seemed destined for relatively easy passage as part of a plan to fund the Department of Homeland Security. It stalled, however, over the addition of $1 billion for the President’s planned White House ballroom and security complex and the announcement of a $1.8 billion “anti-weaponization” fund.
The settlement, though not funded by the bill, is likely to attract a Democratic amendment to block it. With support of all Senate Democrats, it would take only four Republicans uncomfortable with the settlement fund to pass such an amendment, which could potentially undermine passage of the reconciliation bill. As it now stands, the President has indicated an intent to proceed with the settlement, and Senate Republicans have yet to settle on an agreed solution.
ICE and CBP operations continue unaffected, however. Funding for 2026 operations, at least, appears to be adequately secured by money appropriated in last year’s reconciliation bill, OB3. Given that, passage of the pending reconciliation bill may be in some jeopardy.
FISA. The temporary extension of section 702, which provides for warrantless surveillance of foreign persons, expires on June 12. Bipartisan concerns over ensnarement of U.S. citizens have prevented passage of a durable extension. Negotiation of compromise limits on section 702 continues, as the President insists on passage without amendment.
The June 12 deadline weighs on Congress, as it returns this week.
Housing affordability legislation. House and Senate have each overwhelmingly passed versions of housing legislation. The bills include dozens of provisions that ease permitting and financing, among other measures designed to address housing affordability.
Affordability is a leading political issue in the coming elections, not least about housing. House-Senate differences over the legislation are not insignificant, but current economic conditions—increasing inflation and higher mortgage rates—seem more than sufficiently compelling to lead to final passage of a significant housing bill.
Gasoline excise tax holiday. Talk continues of a possible suspension of the federal excise tax on gasoline and diesel fuel. Again, affordability is the driving force, as the increase in the price of gasoline and diesel as a result of the military action in Iran makes it an important issue.
The outcome is not assured, however. A suspension of the excise tax would appear to cost $3-4 billion per month, adding to deficit concerns. It would also add to a shortfall in funding for the highway trust fund to which the excise taxes are committed. That would, consequently, affect highway and related infrastructure projects important to the states and districts of members. At the same time, the excise taxes—18.3 cents per gallon for gasoline, 24.4 cents for diesel—would provide only modest price relief.
Ukraine aid. The Ukraine Support Act would provide $9.3 billion in direct aid and loans to Ukraine in support of its war effort. The bill was introduced and referred to several House committees last spring, where it remains. To move the legislation out of committee to a House vote, House Democrats began a discharge petition, which on May 13 was signed by the required 218th House member. Once the petition ripens, any signatory can move to bring the bill to a vote.
The bill would appear to have sufficient votes for House passage, although only very narrowly. Senate passage is uncertain. And in any event, a presidential veto seems likely. Nevertheless, a goal of supporters is to pressure the President to release funding already appropriated for Ukraine, as well as to provide additional munitions.
War powers resolution. Privileged Democratic resolutions to require Congressional authority for further military action against Iran have been regular weekly events in both Houses of Congress for some time. Before adjourning, however, the last received sufficient Republican support to pass the Senate narrowly, 50-47. A privileged vote in the House is to be expected this week, with passage uncertain, but possible. As in the case of the Ukraine aid bill, a presidential veto seems likely.
Nevertheless, again as in the case of the Ukraine aid bill, an important goal of supporters of the resolution is to provide political pressure for an early end to the conflict. More generally, however, action on the resolution may prove disruptive, with many other pressing matters pending.
Dive into our thinking:
June 1, 2026 | Capitol Hill Weekly
Written by Washington National Tax Federal Legislative & Regulatory Services
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