Lately on the Hill
House Advances Two Spending Measures
The House has approved a budget resolution (H.Con.Res. 113), establishing budget targets through 2036 and providing reconciliation instructions to several committees. The resolution is a starting point that establishes the procedural framework for a potential budget reconciliation bill that could advance through Congress with a simple majority vote in the Senate. The measure includes instructions and budgetary targets totaling $95 billion designated to agriculture, armed services, intelligence, and House administration.1 Notably absent are any tax provisions. After its passage, Senate Majority Leader John Thune (R-SD) indicated he plans to wait to take up the resolution, prioritizing a government funding measure in September and saving the budget resolution as a potential vehicle for its passage.
The House passed such a measure, which would extend federal government funding to fiscal year 2026 levels through December 4, 2026. The continuing resolution (H.R. 9770) would provide lawmakers with additional time to negotiate full-year appropriations bills while avoiding a potential government shutdown at the end of September.
House Committee Advances Tax-Exempt Organization Reporting Bills
The House Ways and Means Committee advanced four bills aimed at increasing oversight and transparency of tax-exempt organizations, sending the measures to the full House for consideration. The legislation would require certain nonprofits to disclose foreign-source contributions, impose excise taxes on certain organizations that receive foreign donations before making contributions to political or social welfare organizations, and expand reporting requirements for fiscal sponsorship arrangements.2
Senate Crypto Bill Faces Uncertain Path
Senate Republicans released a new draft of the Digital Asset Market Clarity Act (CLARITY Act) last week in preparation for a potential vote this week. However, Thune expressed doubt in getting the bill passed before the August recess.3
The CLARITY Act would create a federal framework for regulating digital assets by dividing oversight responsibilities between the SEC and the Commodity Futures Trading Commission and establishing rules for when a digital asset may be treated as a commodity rather than a security. The legislation (H.R. 3633) passed the House in summer 2025.
Tariff Developments Drive New Compliance Challenges
Last week saw significant tariff activity as the Trump administration replaced the temporary 10% global tariffs imposed under Section 122 of the Trade Act, which expired on July 24. In their place, the U.S. Trade Representative (USTR) imposed new §301 tariffs following a forced labor investigation, effective on July 24. The new tariffs generally apply to goods from 60 trading partners around the world covering approximately 99.4% of all U.S. imports, with rates of either 10% or 12.5% depending on the USTR’s assessment of each country’s forced labor restrictions and enforcement. Canada, India, Mexico, the U.K., and several other countries are subject to the 10% rate, while other countries including Brazil, China, and Vietnam are subject to the higher 12.5% rate. For countries with negotiated tariff caps, including the European Union, Japan, South Korea, Switzerland, and Taiwan, the tariffs apply only to the extent needed to bring the total tariff rate up to 10% or 12.5%, as applicable. These tariffs do not stack on goods already subject to §232 tariffs on steel, aluminum, and their derivatives.
The new tariffs are an effort to rebuild the administration’s broader tariff framework following court decisions that curtailed previous tariffs under the International Emergency Economic Powers Act (IEEPA).4 The tariffs include exemptions, including for certain raw materials, products not sufficiently available in the U.S., and goods that could create broader economic disruptions. The duties stack with other §301 tariffs.
Separately, the administration announced a series of proposed 50% tariffs on approximately $20 billion of Canadian imports under §338 of the Tariff Act of 1930, to address discriminatory or unequal treatment of U.S. commerce.5 The actions target Canada’s treatment of U.S. autos and auto parts, dairy products, and alcohol exports. The tariffs are scheduled to take affect August 19 and, unlike other tariff actions, qualifying goods under the U.S.-Mexico-Canada Agreement would not be exempt. Goods subject to §232 tariffs are generally exempt as well as items listed in Annex I of each respective proclamation.
In addition, President Donald Trump issued a proclamation modifying §232 aluminum tariffs by creating a new incentive program to encourage investment in U.S. primary aluminum production. Under the program, companies that commit to building, refurbishing, or expanding domestic primary aluminum facilities may be allowed to import primary aluminum at half the applicable §232 tariff rate, provided they meet investment and construction requirements.
The administration also announced an agreement on reciprocal trade with Jordan, building on the U.S.-Jordan Free Trade Agreement. Under the new agreement, Jordan accepted new commitments on trade, labor, digital commerce, intellectual property, and economic security issues. The agreement also includes investment and procurement commitments, including the purchase of six Boeing aircraft, $1 billion pharmaceutical investment in the U.S., and more than $300 million in annual U.S. raw material purchases by Jordanian businesses.
In a Truth Social post,6 Trump announced plans that imported generic drugs will continue a 0% tariff for another two years, after which the rate would increase to 100% for one year and then 200% thereafter. The phased approach is intended to encourage pharmaceutical companies to expand U.S.-based manufacturing.
From the Courts
Court Order Expands Access to IEEPA Tariff Refunds
In Euro-Notions Florida, Inc. v. United States,7 the U.S. Court of International Trade issued an order directing U.S. Customs and Border Protection to reliquidate certain entries that are the subject of pending lawsuits challenging tariffs imposed under the IEEPA. The order applies as of July 17, 2026 to entries that were liquidated more than 80 days prior. The court noted that more than 3,700 lawsuits have been filed seeking refunds and stated that this order supplies the legal authority needed to process those claims, potentially eliminating the need for separate reliquidation orders in thousands of individual cases.
From Treasury & the IRS
OIRA Reviews Export Deduction Guidance
The Office of Information and Regulatory Affairs (OIRA) has begun reviewing IRS guidance related to the foreign derived deduction eligible income (FDDEI) regime and net controlled foreign corporation tested income (NCTI) rules under Internal Revenue Code (IRC) §250. In December 2025, the U.S. Department of the Treasury and the IRS issued Notice 2025-78 announcing their intent to issue proposed regulations.
Acting Tax Policy Secretary Named
Treasury has identified Kevin Salinger as acting assistant secretary for tax policy following the departure of Ken Kies.8 Salinger has also been serving as acting IRS chief counsel and deputy assistant secretary for tax policy.
Released Guidance
Premium Tax Credit: Revenue Procedure 2026-26 provides the annual inflation-adjusted figures used to calculate the Affordable Care Act’s premium tax credit and determine the affordability of employer-sponsored health coverage for 2027. The guidance updates the applicable percentage table under IRC §36B and sets the required contribution percentage at 10.22% for plan years beginning in 2027.
FIFA World Cup Relief: Revenue Procedure 2026-28 provides Form 990 filing relief for certain foreign FIFA member associations participating in the 2026 FIFA World Cup. Eligible organizations that otherwise qualify for tax-exempt status and have no U.S.-source income other than income connected to World Cup participation will not be required to file Form 990 or Form 990-N for the applicable tax years.
This newsletter features developing content that is subject to change at any time. It does not constitute legal or tax advice. Consult your professional advisors prior to acting on the information set forth herein.
- 1“Thune says Senate lacks votes for $95 billion budget resolution,” thehill.com, July 23, 2026.
- 2“Ways and Means Committee Advances Bills to Toughen EO Reporting,” taxnotes.com, July 23, 2026.
- 3“Vault: Thune says no Clarity passage before recess,” punchbowl.news, July 23, 2026.
- 4“Trump Rebuilds Tariffs With New Levies on 60 Economies,” news.bloombergtax.com, July 24, 2026.
- 5“Trump Vows 50% Tariff on Canadian Goods Using Depression-Era Law,” news.bloombergtax.com, July 21, 2026.
- 6Truth Social, Donald J. Trump, July 21, 2026.
- 7Euro-Notions Florida, Inc. v. United States, CIT No. 25-00595, July 15, 2026.
- 8“Treasury Replaces Top Tax Official After Kies’ Departure,” go.bloombergtax.com, July 21, 2026.