When Congress returns to Washington after Labor Day, lawmakers will face an ambitious September agenda. In addition to must-pass annual defense legislation, lawmakers must come to an agreement to fund the government before the end of the federal fiscal year on September 30 or risk a shutdown just a month before the midterm elections. Also on the legislative docket is President Trump’s late June request to Congress for a supplemental funding package to cover the cost of U.S. military operations involving Iran, as well as $11 billion in additional farmer aid. Efforts continue to advocate for a meaningful set-aside for specialty crop assistance within any farmer aid package that Congress considers. Trade State of Play The Trump Administration continued advancing its trade agenda this summer, with significant developments in bilateral trade relations. On July 1, the United States-European trade agreement went into effect following EU ratification of the deal, almost a year after the deal was first announced. Meanwhile, North American bilateral trade negotiations are ongoing after the U.S. announced that it will not renew the United States-Mexico-Canada Agreement (USMCA), opting instead for annual reviews of the agreement which will remain in force through 2036. The Administration also continues issuing refunds to importers following this spring’s Supreme Court decision finding that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded the President’s statutory authority. Beyond tariff policy, geopolitical developments continue to influence the global trade environment. As U.S.-Iranian tensions continue, policymakers and agricultural stakeholders are closely monitoring impacts to the Strait of Hormuz, which remains a strategically important shipping corridor for energy and fertilizer products.
Lynn Jacquez, Of Counsel, JPH Law Firm
Ken Barbic, D.C. Federal Affairs Team
Alexis Bass, D.C. Federal Affairs Team
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JULY–AUGUST 2026
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