The US Senate is set to adjourn, joining the House, which began its August recess two weeks ago. The Senate is not expected to pass a budget resolution for a third budget reconciliation bill. Majority Leader John Thune (R-SD) indicated in late July that he did not have the 50 votes necessary for the budget resolution to pass the Senate.

The House returns to Washington on 31 August and the Senate in September for a relatively short session before adjourning in the run-up to the mid-term elections on 3 November.

The Senate could pass a budget reconciliation resolution when it reconvenes in September. If that happens, there is an expectation that the Senate will broaden the scope of the reconciliation measure provided for under the House-passed FY2027 budget resolution. The current House budget resolution authorizes a US$95b GOP-only bill just for the SAVE America Act voter ID and citizenship provisions, defense funding and farm aid.

The Office of Management and Budget's Office of Information and Regulatory Affairs (OIRA) on 5 August completed its review of IRC Section 250 proposed regulations that would provide guidance related to Foreign Derived Deduction Eligible Income (FDDEI) and Net Controlled Foreign Corporation (CFC) Tested Income. President Trump reinstated OIRA review of government regulations through an executive order in January 2025.

The State of Oregon and 24 other states filed a complaint against the Trump Administration's imposition of additional ad valorem duties of 10% or 12.5% on substantially all products of 60 US trading partners, subject to exemptions. The case, Oregon, et al. v. Trump, et al., was filed in the U.S. Court of International Trade on 3 August.

The plaintiffs are asking the court to find illegal the Section 301 tariffs, which took effect for goods entered for consumption on or after 24 July 2026, and to vacate them.