Washington on One - July 21, 2025

THE LEDE:  Trump signs landmark crypto bill into law…The $9 billion rescissions package (H.R. 4), which would end a half century of federal funding for public television and radio, cancel a swath of foreign aid projects heads to White House for signature… President Trump on Monday pivoted in favor of Ukraine, arranging for U.S. weapons to be delivered to Kyiv and threatening new sanctions on Moscow if Russia's war stretches later in the year...Trump wants recess scrapped and the Senate to focus on nominations… The House has 18 scheduled days in session before Sept. 30, when current government funding expires. The Senate has 26 days…Looking ahead to 2026 spending, House Appropriations Chairman Tom Cole (R-Okla.) released top-line numbers for the 12 appropriations bills, coming in at nearly $1.6 trillion, which exceeds what Trump requested… CBDC fears slowed Crypto legislation… Trump diagnosed with common vein condition after leg swelling…Gabbard threatens prosecution against Obama administration officials for ‘treasonous conspiracy’… Epstein is not going away, Trump sues WSJ for libel… The Supreme Court allowed the administration to begin mass layoffs at the Education Department…Rep. Mark Green (R-Tenn.) formally resigned from Congress Sunday night, temporarily narrowing the House Republican majority to 219-212.  

NUMBERS:  Inflation rose by 2.7 percent in June, the second consecutive month to see a rise in the Labor Department’s Consumer Price Index.

THE WEEK AHEAD:  The House Rules Committee meets to set floor action on resolutions (H.J. Res. 104-106) using the Congressional Review Act to overturn three Bureau of Land Management resource plans. GAO ruled the plans qualify as rules subject to CRA repeal. Bills on water permitting (H.R. 3898) and illegal entry penalties (H.R. 3486) are also headed to Rules. The House will debate 21 suspension bills this week, including veterans and financial services measures, and plans action on Coast Guard reauthorization (H.R. 4275). The Senate will vote on Terrance Cole’s DEA nomination and six other nominees, with appropriations action likely Tuesday.

IN THE COMMITTEES:  The House Financial Services subcommittee will mark up its fiscal 2026 spending bill this evening, proposing cuts to the IRS, SEC, and federal property programs. Full committee markups are scheduled this week for Interior-Environment (Tuesday), National Security-State (Wednesday), and Commerce-Justice-Science (Thursday). The Senate Appropriations Committee will mark up Interior-Environment and Transportation-HUD bills Thursday.  The Senate Agriculture Committee will vote today on CFTC nominee Brian Quintenz and USDA picks. The Senate Banking panel will consider Jovan Jovanovic’s nomination to chair the Export-Import Bank on Wednesday.  FEMA’s top political official will testify Wednesday on the administration’s flood response in Texas. Senate hearings this week cover public safety and drones, grid capacity, and California’s Proposition 12.  The House will examine defense contracting, NOAA weather programs, and legislation to eliminate the penny and alter the nickel’s composition. Jeanine Pirro and other nominees face another Judiciary Committee vote after procedural complaints.

POWELL: President Donald Trump did not rule out trying to remove Federal Reserve Chair Jerome Powell, whom he has lambasted for keeping interest rates high, but said it was “highly unlikely” that he would do so. Trump’s comment today gave the financial markets whiplash, coming after he surveyed a group of hard-line House Republicans in the Oval Office Tuesday night — who all want Powell ousted — on whether he should fire the central bank chief, according to two people with direct knowledge of the meeting.

EPSTEIN: House Republicans and President Trump struggled this week amid fallout from the Jeffrey Epstein scandal. GOP infighting stalled action on a $9 billion rescissions bill as leaders scrambled to avoid politically damaging votes on releasing Epstein files. A bipartisan discharge petition to force the documents’ release gained traction. Trump’s efforts to shift blame to Democrats and discredit media reports backfired, including a failed attempt to block a Wall Street Journal story linking him to Epstein. His demand for Attorney General Pam Bondi to release grand jury testimony further fueled the controversy, exposing cracks in his grip on the GOP.

THEATRICS: Democrats on the Senate Judiciary Committee walked out of a Senate hearing in protest on Thursday, as Republicans gave their approval to two controversial Trump nominees.  The committee gave its approval to Emil Bove, one of Trump’s former criminal defense attorneys who is now in the No. 3 spot in the Justice Department, and to Jeanine Pirro, a former Fox News host confirmed as a nominee for U.S. attorney for Washington, D.C.

DEPT OF ED:  President Trump has directed Education Secretary Linda McMahon to move forward with dismantling the Department of Education following a Supreme Court ruling allowing the administration to proceed with layoffs.  “We want to bring education back to the states, take the federal government out of it — just a little bit of supervision, almost nothing, like to make sure they speak English,” Trump told reporters Tuesday aboard Air Force One.  Since taking office, Trump has pushed to cut half the agency’s workforce and shift core functions, like student loan management, to other federal departments. A district court blocked those efforts in May, ordering 1,400 laid-off workers reinstated.  On Monday, the Supreme Court ruled 6-3 that the administration can proceed.  “The Supreme Court has handed a major victory to parents and students… returning the functions of the Department of Education BACK TO THE STATES,” Trump posted on Truth Social.

CRYPTO:  Congress delivered a major win for the crypto industry Thursday, passing the first federal legislation to regulate stablecoins and paving the way for broader use of the technology in everyday finance. Backed by Republicans and President Trump, the bill (S. 1582) establishes federal or state oversight of dollar-linked tokens, a $265 billion market projected to reach $3.7 trillion by 2030. The House also passed a separate crypto market structure bill (H.R. 3633) which the Senate will have their own ideas about after the August Recess. The legislation’s centerpiece—the “GENIUS Act”—allows the OCC to issue charters to nonbank stablecoin operators and expands its regulatory reach. Banks face growing pressure to adapt, with Citigroup and JPMorgan advancing blockchain initiatives while Bank of America weighs its options. Unlike volatile cryptocurrencies, stablecoins offer fast, programmable payments, attracting companies seeking alternatives to banks. The OCC’s workload is growing even as it faces staffing reductions. Meanwhile, the SEC is considering regulatory exemptions to encourage tokenization and innovation in financial services.

PRIVACY:  A hand full of House Republicans brought activity to a halt this week in a fight to ban a Federal Reserve-issued digital dollar, demanding the measure be tied to broader crypto legislation. After assurances it would be added to future bills, hardliners lifted their blockade and the House passed two industry-backed crypto measures. Conservatives argue a central bank digital currency (CBDC) threatens privacy and would expand government surveillance. Despite Fed Chair Powell’s vow not to advance a digital dollar, Republicans advanced a standalone ban 219-210. The issue has united banks and crypto interests, both of which view a CBDC as competition. Lobbying against the Fed’s potential role in digital currency has surged, with industry groups backing the GOP effort. While House leaders promise to attach the ban to the annual defense bill, the Senate is unlikely to agree. Conservatives’ push reflects broader GOP fears of financial overreach through digital surveillance tools.

APPROPS:  Appropriators in both chambers advanced fiscal 2026 spending bills last week. The House passed its $831.5 billion Defense bill (H.R. 4016) early Friday, the second measure to clear the chamber. Senators are set for their first floor action next week on the Military Construction-VA bill (H.R. 3944), which could become a vehicle for additional measures. Senate appropriators also cleared their Commerce-Justice-Science bill (S. 2354) after resolving a dispute over blocking relocation of the FBI headquarters. The House approved its Transportation-HUD and Energy-Water bills, along with 302(b) allocations dividing $1.6 trillion in discretionary funding. While Democrats oppose the GOP cuts, the House plan spends $150 billion more than the White House request. The Senate, working on a bipartisan basis, has largely avoided steep reductions. House-passed $9 billion in rescissions (H.R. 4) could complicate fall talks. More House committee work is expected the week of July 21.  House appropriators plan to continue marking up fiscal 2026 spending bills this week and after the August recess. The Energy and Water bill could see final committee action Monday if needed. The Financial Services bill is set for subcommittee markup Monday night and full committee markup on Sept. 3. Interior-Environment is scheduled for full committee markup Tuesday, followed by National Security-State on Wednesday and Commerce-Justice-Science on Thursday. Labor-HHS will be marked up in subcommittee on Sept. 4, with full committee action slated for Sept. 9

UKRAINE:  President Trump on Monday pivoted in favor of Ukraine, announcing U.S. weapons deliveries to Kyiv and threatening new sanctions on Russia if the war continues. Speaking alongside NATO Secretary-General Mark Rutte, Trump outlined a deal to sell U.S.-made weapons to NATO, including Patriot missile defense systems critical to Ukraine’s defense. Trump framed the move as a win for the U.S., with Ukraine paying for the weapons. He gave Russian President Putin a 50-day deadline to end the war or face 100% tariffs on countries trading with Russia. Trump also downplayed a Senate sanctions bill imposing harsher penalties.

IMMIGRATION:  House Republicans are considering reviving their hardline immigration bill, H.R. 2, after the August recess. The Judiciary and Homeland Security committees are discussing updates to strengthen asylum limits, parole authority, and border enforcement. Judiciary Chair Jim Jordan said revisions aim to block future Democratic administrations from reversing Trump-era policies. Additional GOP bills would target illegal reentry, immigrant felons, and sanctuary cities. While leadership pushes to codify Trump’s agenda, some centrists prefer bipartisan efforts like the Dignity Act, which offers legal pathways. Illegal border crossings remain low, raising questions about political appetite for aggressive measures ahead of the 2026 elections.

WIND/SOLAR:  The Trump administration’s latest move to stifle wind and solar development requires Interior Secretary Doug Burgum’s personal approval for permits and actions tied to renewable projects on federal land. The directive could delay scores of projects, including those on private land needing federal approvals. Industry groups warn it will bottleneck clean energy at a time of rising demand, harming grid reliability and raising electricity prices. Lawmakers from both parties voiced concern, with Sen. Lisa Murkowski calling it a “final nail” in bipartisan efforts to preserve tax credits. Critics say the policy prioritizes politics over practicality and risks undermining U.S. energy security. Clean energy advocates warn the directive contradicts the administration’s pledges to cut red tape and support AI-driven growth. Burgum’s expanded role, they argue, adds unnecessary bureaucracy, slowing projects already critical to meeting the nation’s energy needs.

EPA:  EPA Administrator Lee Zeldin announced new steps to reshape and shrink the agency following the Supreme Court’s decision clearing the way for mass firings and reorganizations. The EPA will consolidate its finance and administrative offices into a single entity and make additional structural changes to its enforcement and Superfund offices. This latest reorganization follows the agency’s earlier plan to shutter its research branch and reassign some of those employees to other offices