Congressional Update

The House returned to Washington, DC following a five-week recess, with government funding at the top of its agenda. As a reminder, while the House was away, the Senate passed a continuing resolution (CR) to fund the government at current levels through December 11. On Tuesday, the House voted 370-48 in favor of the Senate-passed CR, before President Trump signed the CR into law on Wednesday. Prior to the vote, some House Republicans, including Rep. Andy Harris (R-MD) and Rep. Chip Roy (R-TX), indicated their opposition to the CR due to its inclusion of the hemp ban delay.

This week, the Trump administration granted more small refinery exemptions from biofuel-blending mandates. Specifically, the EPA exempted 1.76 billion renewable identification numbers for 29 small refineries during the 2025 compliance year. The decision’s impact is widespread, affecting over 13.4 billion gallons of gas and diesel that would have been required to mix with biofuels in 2025. Alongside the biofuel exemptions, the EPA announced a direct final rule to extend the Renewable Volume Obligation compliance date by 30 days to October 1. This rule would reallocate the exempted gas from 2025 into refiners’ 2026 and 2027 obligations. Leading up to these announcements, Midwestern Republicans shared their opposition to the increased exemptions under the Renewable Fuel Standard. Sen. Chuck Grassley (R-IA) stated that the exemptions would be detrimental to biofuels, but ultimately applauded President Trump for his commitment to reallocating the exempted biofuels. Sen. Joni Ernst (R-IA) and Sen. Deb Fischer (R-NE) also shared their support for the proposed reallocation.

In an effort to lower gas prices, the Trump administration hosted oil executives at the White House this week. The meeting focused on ways to expand refining capacity and unleash American energy dominance. Notably, the meeting comes as President Trump previously accused large oil refiners of price gouging. Energy Secretary Chris Wright, Interior Secretary Doug Burgum, and National Energy Dominance Council Executive Director Jarrod Agen participated in the meeting.

House Republicans have continued their attacks on California emission standards. Rep. James Gallagher (R-CA) introduced the Protect America from CARB Act of 2026 (H.R.10154), which would require states to receive approval from the EPA and the Departments of Agriculture, Energy, Interior, and Transportation before obtaining federal Clean Air Act waivers. Currently, states only require permission from the EPA for a waiver.

Looking ahead, the next funding battle will emerge during the lame-duck session and will be heavily influenced by the results of the midterm elections. Although House Democrats have shared their hopes of passing bipartisan FY27 spending bills, they currently oppose the GOP-drafted bills. Following this week, the House will be on recess again and return on September 14 alongside the Senate.