Washington On One Page - May 26, 2026

DGA GROUP GOVERNMENT RELATIONS

WEEKLY EDITION · WEEK OF MAY 18–22, 2026

Federal affairs intelligence for clients, prospects, and friends.

THE WEEK IN BRIEF

1. ROAD to Housing Act clears the House, 396-13. The House passed its amended version of H.R. 6644 on Wednesday, stripping the Senate’s seven-year BTR forced-divestiture provision and narrowing the Section 901 institutional-investor purchase ban. The bill returns to the Senate.

2. Senate advances Iran war powers resolution, 50-47. Sen. Bill Cassidy (R-LA), freshly freed from reelection concerns after losing his primary, flipped to join Paul, Collins, and Murkowski in backing the discharge motion — the first successful procedural vote after seven failures.

3. House GOP cancels Iran war powers vote. With Rep. Jared Golden (D-ME) poised to flip and ~10 Republican absences, leadership pulled the resolution from Thursday’s floor schedule rather than risk passage. Punted to after Memorial Day recess.

4. Reconciliation 2.0 stalls in the Senate. The $72 billion ICE/CBP funding bill fractured over a $1.8 billion DOJ “anti-weaponization” compensation fund. Senate adjourned for recess without a floor vote, missing Trump’s June 1 deadline.

5. Smithsonian Women’s Museum bill rejected, 204-216. Six Republican defections combined with unified Democratic opposition after the GOP added provisions restricting the museum to “biological women” and granting Trump location authority.

6. Trump unseats Massie in Kentucky; Barr wins Senate primary. Tuesday’s six-state primary night: Rep. Thomas Massie (R-KY) fell to Trump-endorsed Navy SEAL Ed Gallrein in the most expensive House primary in history ($30M+). Rep. Andy Barr (R-KY) won the GOP Senate primary to replace McConnell. Tuberville cruised in the Alabama governor’s race (85.5%). Alabama Senate GOP primary heads to a runoff.

7. Senate confirms 49 nominees en bloc. Monday’s 51-46 cloture vote cleared U.S. Marshals, U.S. Attorneys, the BLM Director (Stevan Pearce), an NRC Commissioner, a FERC Commissioner, and the Under Secretary of Energy.

8. Congress departs for Memorial Day recess. Both chambers in pro forma session through May 26. House returns the week of June 1; Senate returns June 1.

FEATURE

Housing Legislation Clears the House — Now the Hard Part

The most significant federal housing package in a generation passed the House 396-13, but the Senate’s Section 901 investor ban is the fault line that still needs bridging.

On Wednesday, the House concurred in the Senate amendment to H.R. 6644 with its own amendment, passing the 21st Century ROAD to Housing Act under suspension of the rules. The vote — 396-13 — underscores overwhelming bipartisan support for the bill’s housing-supply provisions. Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA) led the effort.

The House version makes consequential changes to the Senate’s institutional-investor restrictions in Section 901. The seven-year forced-divestiture requirement for build-to-rent properties — which industry groups warned would reduce new rental construction by at least 72,000 units annually — has been stripped. The House retains the core prohibition on large institutional investors (entities owning 350+ single-family homes) purchasing additional single-family homes but adds a renter outreach resource and removes the disposal mandate. The CBDC ban through 2030 remains.

The bill now returns to the Senate. Because the House amended the Senate’s text, the Senate must either accept the House amendment, amend it further (sending it back), or proceed to a conference. With Memorial Day recess intervening and Reconciliation 2.0 competing for floor time, the timeline is uncertain.

DGA VIEW

The ping-pong is substantive, not procedural — the gap between the Senate and House versions of Section 901 is precisely the question of how much the federal government will restrict build-to-rent investment. Those in single-family rental, real estate investment, homebuilding, and REIT sectors should expect continued volatility through June. The BTR provision’s fate will likely be resolved in informal bicameral negotiations before the August recess target.

FEATURE

Iran War Powers: The Dam Is Cracking

After seven failed attempts, the Senate advanced a war powers resolution 50-47 — and the House pulled its own vote rather than let Democrats win.

Tuesday’s 50-47 Senate discharge vote was the first successful procedural action on an Iran war powers resolution since hostilities began. Four Republicans — Paul (KY), Collins (ME), Murkowski (AK), and the newly freed Cassidy (LA) — joined all Democrats except Fetterman (PA). Three Republican senators were absent.

The resolution still faces a final Senate passage vote, which could attract additional Republican support. But the path to law remains narrow: even if the House passes its version, President Trump would almost certainly veto, and an override requires two-thirds in both chambers.

On Thursday, House GOP leadership abruptly pulled its own war powers resolution from the floor. Rep. Jared Golden (D-ME) — the only Democrat who had consistently opposed prior resolutions — was planning to flip to yes. With ~10 Republican absences (including Fitzpatrick, Barrett, and Massie as prior yes votes), the math was unworkable. Speaker Johnson punted to after Memorial Day.

DGA VIEW

The political ground is shifting under the Iran war effort as gas prices rise into the summer driving season and midterm campaigns intensify. Defense, energy, and international-trade clients should track the post-recess House floor calendar closely — leadership cannot indefinitely defer the vote.

FEATURE

Primary Night: Trump’s Grip Tightens

Six states voted on May 19. The headline: Rep. Thomas Massie, one of the last anti-war Republicans in the House, was unseated in the most expensive House primary in American history.

President Trump’s political operation made KY-04 its marquee target, backing Ed Gallrein — a dairy farmer and former Navy SEAL with no prior political experience — against the 14-year incumbent. Over $30 million in total spending flooded the race. Massie had drawn Trump’s ire for voting against the “One Big Beautiful Bill,” pushing for release of the Jeffrey Epstein files, and opposing the Iran war.

In the Kentucky Senate race to replace Mitch McConnell, Rep. Andy Barr won the GOP primary with Trump’s endorsement — after Trump cleared the field by offering rival Nate Morris an ambassadorship. Democrat Charles Booker won the Democratic nomination.

Elsewhere: Tommy Tuberville cruised to the Alabama GOP gubernatorial nomination with 85.5%, trading his Senate seat for a governor’s race. That open Alabama Senate seat now heads to a Republican runoff. In Georgia, the Democratic governor’s primary went to Keisha Lance Bottoms (56.2%), while the Republican race heads to a runoff with Lt. Gov. Burt Jones in the lead.

DGA VIEW

Massie’s defeat removes one of the few remaining Republican voices for war powers restraint and spending discipline. The political signal is loud: opposing the president, even on principle, now carries a credible electoral cost. The Alabama and Kentucky Senate races will reshape both states’ delegations by 2027 and merit monitoring for committee-assignment implications.

THE WEEK ON THE HILL

HOUSE OF REPRESENTATIVES

Mon 5/18	Pro forma session. No legislative business.
Tue 5/19	Suspension bills considered. H.R. 6644 placed on calendar for Wednesday vote. Rules Committee met on the week’s rule.
Wed 5/20	H.R. 6644 — 21st Century ROAD to Housing Act passed 396-13. S. 2393 — VA Major Medical Facility Auth Act passed 405-5 (to President). S. 1003 — Lulu’s Law passed 401-6 (to President).
Thu 5/21	H.R. 1041 — Veterans 2nd Amendment Protection Act passed 216-201. H.R. 6047 — Veterans Benefits Expansion Act passed 235-179. Smithsonian Women’s Museum Act failed 204-216. Iran war powers resolution pulled from floor. Approps subcommittees advanced Interior-Environment ($38.9B) and T-HUD. Congress adjourned for Memorial Day.
Fri 5/22	Pro forma. LegBranch Approps (H.R. 9010) and E&W Approps (H.R. 9022) introduced. T&I completed markup of BUILD America 250 Act ($580B/5yr surface transportation), advanced 62-2 with EV fees and Railway Safety Act. Kevin Warsh sworn in as Fed Chair.

SENATE

Mon 5/18	49 nominees confirmed en bloc (cloture 51-46). Includes BLM Director Stevan Pearce, Under Secretary of Energy Kyle Haustveit, FERC Commissioner David LaCerte, NRC Commissioner Douglas Weaver.
Tue 5/19	Iran War Powers: discharge motion passed 50-47. Cassidy (R-LA) flipped. Fetterman (D-PA) voted no. Three Republicans absent. First successful procedural vote after seven failed attempts.
Wed 5/20	Senate HSGAC passed Reconciliation 2.0 bill (ICE/CBP, $72B) out of committee, 8-5. Budget Committee considered reconciliation package.
Thu 5/21	Reconciliation 2.0 floor vote stalled over $1.8B DOJ “anti-weaponization” fund. Acting AG Blanche grilled for ~2 hours by ~25 GOP senators. Senate adjourned for recess. ICE/CBP retain ~$100B from last year’s reconciliation law.
Fri 5/22	Pro forma session. Senate adjourned until Tue, May 26.

BEYOND THE HILL

DNI

Gabbard Resigns as Director of National Intelligence

Tulsi Gabbard resigned as DNI, citing her husband’s health. The departure creates a vacancy at the top of the intelligence community during an active military campaign in Iran.

WHITE HOUSE

AI Executive Order Pulled After Internal Power Struggle

President Trump pulled a widely anticipated AI EO Thursday — blindsiding National Cyber Director Cairncross and Treasury Secretary Bessent. The draft would have created a voluntary 90-day pre-release review for advanced AI models (including systems like Mythos with cyberattack potential). Former AI Czar David Sacks was the leading internal opponent, arguing reviews could slow the industry. Trump said he had “many” concerns and worried the order would “inhibit” the industry. The path forward is unclear — the order may be rewritten, stripped to cyber-only provisions, or killed entirely.

FEDERAL RESERVE

Warsh Sworn In as Fed Chair; Inflation at 7% Annualized

Kevin Warsh was sworn in Friday in the most partisan Fed chair confirmation in history (one Democratic vote). He inherits a difficult environment: the Iran war and oil shock have driven inflation above 7% annualized over three months, markets are contemplating rate hikes rather than cuts, and the White House continues pushing for lower borrowing costs. Former Chair Powell is staying on the Fed board — apparently to deny Trump another appointment.

2026 SENATE MAP

Trump Endorses Paxton Over Cornyn in Texas Runoff

On Tuesday — without a heads-up to Majority Leader Thune — Trump endorsed AG Ken Paxton over three-term Sen. John Cornyn (R-TX) in the Texas Senate GOP runoff. The Texas runoff adds to an already turbulent Senate map alongside Kentucky (Barr vs. Booker), Alabama (open Tuberville seat), and North Carolina (Whatley vs. Cooper).

LATE-BREAKING · MONDAY, MAY 25

U.S. Conducts “Self-Defense Strikes” in Southern Iran During Ceasefire

U.S. Central Command announced Monday that it conducted strikes against missile launch sites and Iranian boats attempting to emplace mines in southern Iran, citing force protection during the ongoing ceasefire. The strikes came hours after Trump said peace negotiations were progressing well and that Iran’s enriched uranium must be turned over or destroyed. The juxtaposition of military action and diplomatic progress underscores the fragility of the ceasefire and adds urgency to the post-recess war powers debate.

HHS / ACA

Obamacare Enrollment Down 1.2 Million — Subsidy Expiration or Fraud?

ACA enrollment has dropped by 1.2 million (from 24.3M total as of March). HHS Secretary Kennedy attributes losses to fraudulent enrollees being purged. State exchanges in nine mostly-blue states attribute the drop to affordability after enhanced subsidies expired Jan. 1. Massachusetts reports 27,000 lawfully present immigrants lost coverage after the Big Beautiful Bill restricted subsidies. Colorado saw a 6% decline among adults 55+. Rhode Island saw overall enrollment down 20% but bronze plan enrollment up 38%. The dueling narratives are shaping up as a central midterm battleground.

LOOK-AHEAD: WEEK OF JUNE 1

Senate returns Monday, June 1. Priority #1: Reconciliation 2.0 (ICE/CBP funding) — Thune needs a resolution on the anti-weaponization fund. FISA Section 702 expires June 12. Iran war powers final passage vote possible. Senate Appropriations subcommittees targeting first markups (Justice, Commerce, Agriculture).

House returns Monday, June 1. Iran war powers resolution vote (statutory deadline approaching). House Appropriations full committee markups June 3 on Interior-Environment and T-HUD. Surface transportation reauthorization continues through T&I. ROAD Housing Act conference or Senate response may shape Financial Services activity.

Executive Branch: White House must provide clarity on anti-weaponization fund. Watch for rescheduled AI executive order. FHFA and HUD guidance implementing EO 14376 expected. OMB BIOSECURE implementation continues. BIS ICTS connected-vehicle rulemaking enforcement dates approaching.

Calendar reality: BGOV counts just 32 days (realistically 29) when both chambers are in session before the November midterms. Six legislative weeks remain. The backlog — Reconciliation 2.0, FISA renewal, housing deal, 12 appropriations bills, Iran war powers, and a possible Reconciliation 3.0 — is enormous relative to available floor time.

30/60/90-DAY HORIZON

WINDOW	SECTOR	EVENT / TRIGGER
June 1	DHS / Immigration	Reconciliation 2.0 Senate floor vote target. Anti-weaponization fund resolution needed first.
June 3	Appropriations	House full Approps Committee markups: Interior-Environment and T-HUD. Senate approps subcommittees begin.
June 12	Intelligence / FISA	FISA Section 702 expiration. Reauthorization requires bipartisan cooperation now strained.
Early June	Defense / Iran	House Iran war powers floor vote. Senate final vote on Kaine resolution.
June	Housing	Senate response to House-amended ROAD Act. Informal bicameral negotiations.
June–July	Appropriations	FY27 subcommittee and full-committee markups.
Summer 2026	Digital Assets	CLARITY Act and/or GENIUS Act Senate floor vote window.
Sept 30	Transportation	Surface transportation authorization expires. BUILD America 250 Act (House) vs. Senate bill.
Aug recess	Housing	ROAD Act enrolled and sent to President (optimistic).
By Dec 2026	China Biotech	OMB publishes initial BCC list under BIOSECURE Act.
2027	Connected Vehicles	BIS ICTS connected-vehicle VCS software compliance date begins.