The Topline: Steptoe Appropriations Newsletter | July 3, 2026

As both chambers head into recess next week, the Steptoe Appropriations Team will also take a brief pause and will return to your inbox with the latest updates on July 17.

Fireworks Fizzle. Last week, House GOP leaders decided to postpone a vote on a rule to take up two appropriations bills (Energy and Water and National Security-State) after President Trump canceled a signing ceremony for bipartisan housing legislation until Congress passed the SAVE America Act (S. 1383). This week, after punting the Energy and Water floor vote to a later date, House leadership planned to consider the National Security-State appropriations bill and FY27 National Defense Authorization Act (NDAA) on the floor. However, member-level challenges persisted and ultimately forced the House into an early recess.

Prior to his decision to recess early, Speaker Mike Johnson (R-LA) amended the NDAA rule to add the SAVE America Act to the NDAA upon its passage. The move was intended to appease some objectors, including Rep. Anna Paulina Luna (R-FL), one of the leading advocates for the SAVE America Act. Rep. Luna called the move a "procedural head fake," and is insisting that the SAVE Act be added as an amendment to the NDAA. As a result, House floor activity was put on pause, and the House left town early without passing the FY27 National Security-State appropriations bill. The House remains in a conferenceable position even without floor action, as all 12 appropriations bills have advanced through the full committee. Still, appropriations leaders continue to press for regular order and floor consideration as a demonstration of progress.

Oversight, Oversight, Oversight. With FY27 appropriations markups in the rearview mirror for the House, Chairman Cole (R-OK) plans to hold a full schedule of oversight hearings during July and September (to the extent time remains available in those months). This is somewhat outside the committee’s typical pattern, as oversight hearings are generally concentrated in the fall and spring. Chairman Cole appears intent on keeping the committee active while the Senate works through topline negotiations and searches for a workable path forward.

In keeping with that strategy, the House Financial Services and General Government (FSGG) Appropriations Subcommittee held an oversight hearing this week with White House Office of Management and Budget (OMB) Director Russ Vought. As expected, Democrats used the hearing as an opportunity to raise concerns about OMB’s use of "pocket rescissions," the FY27 budget request, and proposed staffing cuts at OMB. Vought told committee members that he would not take any tool off the table but has no plans to pursue a rescission at this time.

Mid-Year Calendar Check. The House has just eight legislative days remaining before the August recess, and collectively, both chambers have only eight legislative weeks before the November midterm elections. That leaves the Senate with limited time to move bills through committee. At this juncture, it is all but certain that Congress will need a continuing resolution (CR) in September extending funding until after the election, while Senate appropriators continue working toward a topline agreement. The compressed timeline is becoming increasingly challenging for moving the bills through regular order.