ADVOCACY & POLICY UPDATE - August 17, 2026

Senate Passes Funding Deal

Appropriations

Prior to adjourning for its five-week August recess, the Senate passed its continuing resolution (CR) to fund the government through December 11, but several issues remain unresolved heading into September. 

The stopgap funding bill did not include President Trump’s Safeguard American Voter Eligibility (SAVE America) Act — which would require individuals to provide proof of U.S. citizenship when registering to vote and show photo identification when casting a ballot — despite the President’s push for it. The SAVE Act has been stalled in the Senate for months, with the deadlock now expected to continue until at least September. Senate Majority Leader John Thune (SD) has repeatedly told President Trump he does not have the votes needed to advance the legislation, despite the President at one point calling on senators to cancel their August recess to pass it. The Senate has held five votes related to the legislation.

The House-passed budget resolution, which President Trump has also urged the Senate to advance, remains unresolved as well. The package would provide $73 billion for the war in Iran, raise the national debt limit through the end of Trump’s term, provide $12 billion for farmers and $10 billion in incentives for states to reform election procedures.  But, like the voter registration bill, Thune has told Trump that Republicans do not have the 50 votes needed to advance the package. Senate Republicans, President Trump and other Senate conservatives agreed to punt a vote on the budget resolution until after the recess. In the meantime, Senate Republicans said they will work through August and September on a revised budget reconciliation package.

Additionally, the Senate left Washington without voting on the bipartisan Clarity Act, which would establish a federal regulatory framework for the cryptocurrency industry. One major sticking point is an ethics provision sought by Senate Democrats that would bar elected officials from profiting from the industry. Some industry experts said the bill’s prospects for passage have dwindled after senators' failure to act prior to recess.

Senators also delayed consideration of the bipartisan Protect College Sports Act, which would provide the NCAA with limited antitrust protections and establish standards governing the transfer portal, student-athlete compensation and medical coverage. The legislation, commonly referred to as the “NIL bill” because it would establish rules for the use of athletes’ name, image and likeness, had been one of the issues complicating the Senate’s broader effort to reach an agreement on the government funding package. That issue was resolved when Senate Commerce Committee Chair Ted Cruz (TX), the bill’s lead sponsor, reached an agreement with Thune to postpone consideration until September. 

On Thursday, August 13, Chair of the House Rules Committee Virginia Foxx (VA), said she thinks the Senate-passed government funding bill will pass the House on suspension, predicting that the measure could get a two-thirds majority in the chamber and skip consideration in her committee altogether. 

Small Business Administration

The Small Business Administration (SBA) has resumed approving new applications for its 8(a) Business Development Program after pausing new applications for roughly a year as the agency conducted an audit and pursued reforms to the program. The SBA paused new 8(a) applications in August 2025 amid the Trump Administration’s efforts to examine the program for fraud, waste, and abuse. During a House Oversight Committee hearing last month, SBA Administrator Kelly Loeffler said the pause was part of a full agency audit and broader efforts to reform the program. The SBA has since approved dozens of 8(a) applicants, according to agency officials.

Last week, the SBA also issued a final rule that removes the presumption that individuals belonging to certain designated groups are socially disadvantaged, with the stated goal of administering the program in a race-neutral manner. The rule takes effect September 10 and does not change eligibility for small businesses owned by tribes, Alaska Native Corporations, Native Hawaiian Organizations or Community Development Corporations. The agency said it will issue additional guidance for pending individually owned 8(a) applicants before the rule takes effect.

The change comes as the Administration continues to scrutinize the 8(a) program and its use in federal contracting. Defense Secretary Pete Hegseth has criticized the program and called for significant changes, while the Department of Defense remains the largest federal agency using 8(a) contracts. DoD awarded more than $18 billion in contracts to 8(a) participants in FY24.

Click here to access the final rule.