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Summit Strategies August Local Government Update
Senators Make Progress on Appropriations Before August
Recess
Before heading home for August recess, Senators made progress on several Fiscal Year 2026 spending bills. The Senate approved a three bill “minibus” that combined the Military Construction-Veterans Affairs; Agriculture; and Legislative Branch bills by a bipartisan vote of 87-9. The Senate Appropriations Committee has also reported the Transportation-HUD; Labor- HHS-Education; Interior-Environment; Defense; and Commerce-Justice-Science bills out of committee.
The House has passed two FY 2026 spending bills – the Defense and Military Construction- Veterans affairs bills – and the House Appropriations Committee has reported all but three of the remaining bills out of committee.
Despite the progress, Congress remains significantly behind in finishing passage of all spending bills before government funding expires on September 30th. A stopgap funding measure will very likely be necessary to keep the government open while negotiations on the spending packages continue.
At this point, it is far from certain that a stopgap funding measure will pass. Conservatives usually oppose short-term spending bills and Democrats are furious after the passage of a package of rescissions of previously enacted appropriations last month. Given that Democratic votes are needed to pass any funding measure in the Senate, the endgame for the FY 2026 government funding remains very uncertain.
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Open Grant Opportunities
Midsize and Large Drinking Water System Infrastructure Resilience and Sustainability Program: The Safe Drinking Water Act (SDWA) section 1459F authorizes the Environmental Protection Agency (EPA) to establish the Midsize and Large Drinking Water System Infrastructure Resilience and Sustainability Program. This grant program assists medium and large size public water systems with protecting drinking water sources from natural hazards, extreme weather events, and cybersecurity threats.
• Agency: Environmental Protection Agency
• Funding Range: Floor-Ceiling: $-$9,500,000
• Estimated Total Program Fundings: $9,500,000
• Funding Details: It is anticipated that up to 6 award(s) will be made. Awards are expected to be between $1,187,500 and $2,375,000, depending on Agency funding levels, the quality of applications received, agency priorities, and other applicable considerations.
Awards funded under this opportunity are expected to have a one-to-four-year project period.
• Application Deadline: October 6, 2025
Legislative Tracking
• S.2651: ROAD to Housing Act of 2025
o Date Introduced: August 1, 2025
o Sponsor: Sen. Tim Scott (R-SC), Sen. Elizabeth Warren (D-MA) o Status: Introduced
o Summary: This legislation would incorporate 27 previously introduced pieces of legislation that would increase the supply of affordable housing by expanding and preserving housing supply, improving housing affordability, and increasing oversight and efficiency of federal regulators and housing programs. The bill would authorize CDBG funds with potential adjustments, increase opportunity zones, and reauthorize the HOME Investment Partnerships Program.
o Status Update: On July 29th, the Senate Committee on Banking, Housing, and Urban Affairs marked up the Renewing Opportunity in the American Dream (ROAD) to Housing Act, a sweeping, bipartisan housing bill and passed it 24-0 out of committee to the Senate floor.
• H.R.4649: Smart Cities and Communities Act of 2025
o Date Introduced: July 23, 2025
o Sponsor: Rep. Suzan K. DelBene (D-WA-1)
o Status: Introduced
o Summary: This legislation would promote smart technologies and systems to improve community livability, services, communication, safety, mobility, energy productivity, and resilience to natural and manmade disasters, to reduce civic costs, traffic congestion, and air pollution, and to promote equity, economic growth, and opportunities for communities of all sizes
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Agency Activities
ICYMI: Secretary Scott Turner Visits Pittsburgh to Witness Innovative Housing Solutions, Tours U.S. Steel and Faith-Based Shelter
U.S. Housing and Urban Development (HUD) Secretary Scott Turner joined U.S.
Senators David McCormick (R-PA) and John Fetterman (D-PA) in Pittsburgh with stops at U.S. Steel, Connect Bedford Dwellings, and Light of Life Rescue Mission.
Interior Launches Overhaul of Offshore Wind Rules to Prioritize American Energy Security
The Department of the Interior is launching a full review of offshore wind energy regulations to ensure alignment with the Outer Continental Shelf Lands Act and America’s energy priorities under President Donald J. Trump. This effort includes reviewing the Renewable Energy Modernization Rule, as well as financial assurance requirements and decommissioning cost estimates for offshore wind projects, to ensure federal regulations do not prioritize foreign energy sources.
Government Leaders Show Support for EPA Decision to Rescind Obama’s 2009 Endangerment Finding
On July 29th, the U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin released the agency’s proposal to rescind the 2009 Endangerment Finding, which has been used to justify over $1 trillion in regulations, including the Biden-Harris Administration’s electric vehicle mandate. If finalized, the proposal would repeal all greenhouse gas standards for light-, medium- and heavy-duty vehicles and heavy-duty engines. Government officials across the country showed support including House Western Caucus Chairman Doug LaMalfa (R-CA-01).
Justice Department Publishes List of Sanctuary Jurisdictions The Justice Department published a list of states, cities, and counties identified as having policies, laws, or regulations that impede enforcement of federal immigration laws. DOJ also published the criteria it used to identify the sanctuary jurisdictions.
News Roundup
• Trump puts DC police department under federal control, deploys National Guard ABC • Mayors of Democratic cities respond to Trump's threats NPR • Schumer, Jeffries demand GOP leaders meet on government shutdown deadline The Hill • Asylum-seekers thought they were following the rules. Some told to start over NPR • The Challenge of Getting PFAS Out of Drinking Water Governing • Trump seeks to change census data collect to exclude immigrants in U.S. illegally AP