Retail Policy Update: Congress Heads Into Recess

Spring recess began this week as House and Senate members returned to their districts, leaving funding for the Department of Homeland Security (DHS) unresolved and the war in Iran continuing without a clear off-ramp. Hopefully, they made their flights on time given the now 40+ day DHS shutdown has notably impacted the Transportation Security Administration (TSA) staffing and oil prices, spiking gasoline and jet fuel. Each remain problematic, and a lasting solution is unlikely until recess ends the week of April 13th – if not longer.

Looking ahead to the April session, we expect the House to focus on significant committee activity to prepare key bills for passage later in 2026, including the National Defense Authorization Act and Surface Transportation reauthorization among others. The RILA team will also be closely tracking whether the House Energy and Commerce Committee unveils a new comprehensive privacy bill and/or reaches a compromise with the Senate on the Children’s and Teens' Online Privacy and Protection Act 2.O.

On the Senate side, we are watching whether the Banking Committee will advance its crypto market structure deal to the floor. This scenario would create an opportunity for Senator Marshall to offer the Credit Card Competition Act (CCCA) as an amendment to the larger bill. While several steps remain, tea leaves intel suggest progress is being made:

• The White House, banks and the crypto industry may soon agree on if crypto can offer rewards like existing banks.
• A recent proposal on Basel III suggests banks may have a more lenient capital requirement standard.
• Senators Cruz and Britt are strongly advocating for their legislation to raise the current $10 billion asset threshold that caps debit card fees for banks and indexes the threshold annually to inflation.

Taken together, this could lead to a broader negotiation that delivers wins for the banking community in exchange for crypto rewards and a vote on the CCCA.

In addition to these activities, some members in both the House and Senate continue to push for a second reconciliation package to address DHS funding, supplemental funding for the Iran war and other add-ons. The prospect of another deal is remote, especially given the House's thin margins. However, House Ways and Means Chair Jason Smith softened his longtime stance and said, “if there's a second reconciliation, the Ways and Means Committee will have a significant footprint or there won't be a second reconciliation.” More to come following the recess but it could be a busy spring and summer. Please reach out with any questions or concerns.

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