Congressional Update
The White House has formally requested an $87.6 billion supplemental, of which roughly $67 billion would replenish the Department of War following the Iran conflict (Operation Epic Fury). To draw Democratic votes, the administration packaged in $11.1 billion in farm aid, $1.4 billion for the Ebola outbreak in Central Africa, and other items including Washington restoration projects and a modernized Penn Station. The request arrived late Wednesday following President Trump’s abrupt decision to withhold signing a bipartisan housing affordability bill until Congress passes, or at least the Senate votes on, the SAVE America Act.
For EMA members, the energy-relevant rider is the administration’s push for permanent, year-round sale of E15. The request states the White House “strongly supports” the measure as a tool to ease pump prices. On hemp, the request takes the form of a special finding request to Speaker Johnson urging him to revise hemp’s regulatory framework to align with Rep. Andy Barr’s amendment to H.R. 8646, the Lawful Hemp Protection Act, or at a minimum to delay the hemp ban set to take effect November 12. Barr’s amendment failed in the House Rules Committee, but it would have preserved the legality of many hemp products now slated for recriminalization. Specifically, it would have redefined hemp to allow up to 1 percent delta-9 THC on a dry-weight basis, measured (in the amendment’s words) on the finished consumer product rather than on raw floral or work-in-process material, including any unfinished hemp ingredient. For now, the ban remains in place. Standalone bills addressing the hemp framework are pending, though their prospects are uncertain; the White House letter may help spur movement.
Both provisions complicate an already difficult vote. The E15 measure splits the conference along familiar lines, with corn-state Republicans favoring it and oil-state Republicans long opposed; the hemp language has pitted Kentucky’s Mitch McConnell against Rand Paul. Republican Appropriations leaders such as Reps. Tom Cole (R-OK) and Sen. Susan Collins (R-ME) signaled, they will move quickly to process the request, the proposal faces significant internal and bipartisan hurdles.
Also, this week, Senate Agriculture Chair John Boozman (R-AR) unveiled a budget-neutral farm bill proposal intended for markup before the Senate’s August break. This draft largely reflects the House GOP version passed in April but omits several of the more contentious elements, such as provisions barring states from setting their own pesticide labeling or animal confinement rules. Additionally, the Senate version does not include House language that has received public attention and would allow SNAP benefits to be used for hot rotisserie chicken. The proposal sets the stage for a potential partisan conflict by rejecting Democratic requests to delay the date states must begin cost sharing for SNAP benefits.
President Donald Trump has directed the Department of Justice to investigate major oil companies for alleged price gouging, arguing that gasoline prices have not declined in line with falling crude oil prices. In social media posts, the president noted that crude oil has dropped from roughly $120 to approximately $70 per barrel while retail gasoline prices remain elevated. The directive comes amid continued inflation concerns and ahead of the November midterm elections, where energy prices are expected to remain a key voter issue.
Industry participants have pushed back on the premise of the investigation, noting that gasoline prices do not move in lockstep with crude oil due to refining costs, distribution expenses, taxes, and market disruptions, including the ongoing conflict involving Iran. While the DOJ has stated it is committed to protecting consumers, it has not confirmed that a formal investigation has been opened.
