The US House and Senate are scheduled to return next week from their weeklong recess, at which point the budget reconciliation process is expected to resume. Before the Senate left Washington, Majority Leader John Thune (R-SD) was quoted as saying he planned to move forward with reconciliation the week of 11 May, with a possible floor vote the week of 18 May.

The House and Senate tax-writing committees did not receive instructions in the approved budget resolution, meaning tax will not be part of this second budget reconciliation bill. Conservative Republicans continue to lobby for a third reconciliation bill for later this year that could enact other GOP priorities, including in the areas of tax and trade.

The IRS released Revenue Procedure 2026-21 on 5 May, reinstating the "significant issue" letter ruling program for certain merger and acquisition transactions. The program allows the IRS Associate Chief Counsel (Corporate) to issue letter rulings on significant issues concerning the tax consequences or characterization of certain corporate transactions described in IRC Sections 332, 351, 355, 368 or 1036 without having to rule on the entire transaction.

The IRS had discontinued the program in 2024, issuing letter rulings only on transactions.

The U.S. Court of International Trade, in a 2-1 decision, held on 7 May that President Trump exceeded his authority in imposing a temporary 10% ad valorem global import tariff under Section 122 of the Trade Act of 1974. Section 122 permits the temporary imposition of tariffs of up to 15% ad valorem in cases of "large and serious" balance-of-payments deficits.

President Trump on 20 February issued a proclamation that added a 10% ad valorem global import tariff on all articles imported, effective 24 February 2026 through 24 July 2026, unless expressly suspended, modified or terminated earlier, or extended by Congress. The President issued the proclamation immediately after the US Supreme Court ruled that the International Emergency Economic Powers Act does not grant presidential authority to impose tariffs.

On 30 April, the Office of the U.S. Trade Representative (USTR) released its 2026 Special 301 Report on the adequacy and effectiveness of US trading partners' protection and enforcement of intellectual property (IP) rights. The USTR's Special 301 Report is an annual review of the global state of IP protection and enforcement.

This year's report identified Vietnam as a "Priority Foreign Country." Argentina and Mexico were moved from the Priority Watch List "due to important improvements on IP policy," and the European Union was added to the Watch List. Six countries were placed on this year's Priority Watch List: Chile, China, India, Indonesia, Russia and Venezuela.