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4.00-4.25%
Interest Rates
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This Week in DC
The House and Senate are out.
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Reconciliation Resources
Following enactment of H.R. 1, the One Big Beautiful Bill Act (OBBBA), a number of resources have been released examining the legislation's impact and providing implementation guidance. Newly released resources are included below.
- The Treasury Department and Internal Revenue Service (IRS) released guidance on the “no tax on tips” provision in the law. The proposed regulations identify occupations that customarily and regularly receive tips and define “qualified tips” eligible taxpayers may claim as a deduction. Comments on the proposed regulations are due by October 23.
Fiscal Year 2026 Federal Budget Update
Last week the House voted 217-212 to approve H.R. 5371, the Continuing Appropriations and Extensions Act, 2026. The continuing resolution (CR) extends government funding until November 21 and also includes extended funding for several expiring health care programs. The bill allows the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) to spend at a faster rate to maintain activities, participation and caseload and allows the Federal Emergency Management Agency (FEMA) to spend from the Disaster Relief Fund as needed to respond to disasters. The CR also delays Medicaid Disproportionate Share Hospital (DSH) cuts through November 21. A section-by-section summary can be found here.
The Senate failed to approve the bill by a vote of 44-48 and also voted down an alternative bill proposed by Senate Democrats by a vote of 47-45. The alternative bill proposed by the minority party would fund the federal government through October 31, permanently extend enhanced premium tax credits, reverse some health provisions from the One Big Beautiful Bill Act (OBBBA), and address processes for cancelling appropriated funds. A fact sheet on the alternative bill can be found here and a section-by-section summary can be found here.
The Senate is scheduled to return on September 29, and the House is currently expected to be out of town until October. Current funding for the federal government expires September 30.
Education Encourages Flexibility Option, Announces New Supplemental Priority
Last week the Department of Education (ED) made two announcements related to education flexibility and priorities. First, the Office of Elementary and Secondary Education sent a letter to all chief state school officers reminding them to apply for authority under the Education Flexibility Partnership Act of 1999 (Ed-Flex Act). This option allows states with Ed-Flex authority to waive certain federal requirements that apply to districts and schools without first having to submit waivers to the department for review and approval. According to the announcement, 11 states currently have Ed-Flex authority; those states are identified in the letter. Second, the Secretary of Education announced the fifth proposed supplemental priority for the department’s discretionary grants – prioritizing patriotic education. The priority will be used in grant competitions across ED to promote a civic education that teaches American history, values, and geography. The Notice of Proposed Priority was published in the Federal Register for a 30-day public comment period; ED will complete the rulemaking process by publishing a Notice of Final Priorities. The previous four supplemental priorities were evidence-based literacy, expanding education choice, returning education to the states, and advancing AI in education.
Energy Launches Large Scale Grid Initiative
On Thursday the Department of Energy (DOE) announced the Speed to Power initiative to accelerate the speed of large-scale grid infrastructure project development for both transmission and generation. According to the announcement, DOE analysis shows that the current rate of project development is inadequate to support the country’s rapidly expanding manufacturing needs and the reindustrialization of the economy. To launch the initiative, DOE is issuing a Request for Information focused on large-scale grid infrastructure projects, both transmission and generation, which can accelerate the speed to power. The department is requesting stakeholder input on how to best leverage its funding programs and authorities to rapidly expand energy generation and transmission grid capacity. Responses are due November 21.
ACF Announces a New Strategic Alignment Initiative
The Administration for Children and Families (ACF) announced a new strategic alignment initiative intended to coordinate the agency’s efforts across all programs to maximize impact. The coordinated approach allows ACF to concentrate funding on proven interventions, address complex human services challenges holistically, and achieve measurable results for children and families across the country. ACF is sharpening its focus on improving outcomes in child welfare, strengthening family formation, and enhancing early childhood education. The agency is also enhancing its oversight mechanisms and reinforcing fiscal responsibility across all programs. The announcement highlights ACF’s values and priorities, along with guiding principles.
DOT Announces $5 Billion for Passenger Rail Safety
On Monday the Department of Transportation (DOT) announced the Federal Railroad Administration (FRA) issued a notice of funding opportunity for the National Railroad Partnership Program. The new notice allocates more than $5 billion in funding for projects that enhance safety on intercity passenger rail networks, including improvements to grade crossings. FRA is reissuing the funding notice for fiscal year 2024 and adding funding for the fiscal year 2025 program. Eligible applicants include a state or group of states. Applications are due by January 7, 2026.
Senate Approves SUPPORT Act Reauthorization, Sends to President
Last week the Senate approved by unanimous consent H.R. 2483, the SUPPORT for Patients and Communities Reauthorization Act of 2025. The SUPPORT Act was originally signed into law in 2018 and the legislation expired on September 30, 2023. The reauthorization bill renews and strengthens programs for prevention, treatment, and recovery services for Americans with substance use disorders and mental illness. The bill reauthorizes opioid recovery centers, trains first responses to administer opioid overdose reversal medication, and reauthorizes specialized programs that treat mothers and babies with alcohol and other substance use disorders. The bill now goes to the President for his consideration.
SAMHSA Allocates $1.5 Billion in Opioid Response Funds
On Monday the Substance Abuse and Mental Health Services Administration (SAMHSA) allocated more than $1.5 billion in fiscal year 2025 continuation funding awards for the State Opioid Response and Tribal Opioid Response grants. The allocations include $1.48 billion for State Opioid Response and nearly $63 million for Tribal Opioid Response. Allocation tables are included in the announcement.
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