Washington Report (September 2025)

Government Funding

Both Houses of Congress are in session this week as lawmakers scramble to forge a deal on a government spending measure that would keep federal government agencies and departments open after the end of this month. House and Senate leaders are exploring options on a Continuing Resolution (CR) to buy more time for negotiations on a longer-term FY 2026 appropriations package. In the House, GOP leadership is floating a “clean” CR that would extend government funding through November 20. This may be paired with a 3 bill “minibus” appropriations package that would appropriate full year funds for several departments and agencies. House and Senate Democrat leaders have signaled that they would be on board with this approach if the CR includes extension of enhanced insurance subsidies under the Affordable Care Act, which may be a non-starter for some GOP members. House votes on a short-term CR are expected later this week.

Right now, both chambers are scheduled to be in recess next week, so the next few days will be critical in stopgap funding negotiations.

Trade

On September 9, the Supreme Court announced that it will take up the issue of whether the Administration’s imposition of tariffs on U.S. trading partners is legal under the International Emergency Economic Powers Act (IEEPA). On August 29, the U.S. Court of Appeals for the Federal Circuit ruled in a 7-4 decision that IEEPA does not authorize the President to impose sweeping tariffs on nearly all imported goods from nearly all U.S. trading partners. The Administration has appealed this decision and the Supreme Court announced that it will hear arguments beginning in early November. The tariffs will remain in place until the Supreme Court rules on the matter.

In other trade news, President Trump announced late last month that his Administration is conducting a “major Tariff Investigation on Furniture coming into the United States.” The post on Truth Social went on to say: "Within the next 50 days, that Investigation will be completed, and Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined. This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union. Thank you for your attention to this matter!"

Indications are that the President was referring to the ongoing Section 232 investigation into lumber, timber and derivative products and their potential national security impacts on imports of these products. This investigation was initiated March 1, and his announcement suggests that furniture will be a point of emphasis of the initiative.

WIA has been hearing from Administration officials that results of this Section 232 investigation would be unveiled any day. As soon as we see the report, we will have an analysis for you.

Regulatory

Earlier this month, the Trump Administration unveiled its first regulatory agenda for its second term. Known as the Unified Regulatory Agenda, this document previews the Administration’s priorities for all of the regulatory agencies and departments. The link to the agenda is here: Spring Agenda

Notable among the actions is a planned revisitation of the 2024 rule that tightened the fine particulate matter standard from 12 parts per cubic microgram to 9. That action brings large swaths of the country into nonattainment for this pollutant, which subsequently restricts economic activity in those areas. The agenda also signals that the Administration plans on repealing the greenhouse gas emissions standards for electric utilities and establishing a new definition of “Waters of the U.S.” Also notable is the Administration intends to pursue a heat illness and prevention rule, although it is unclear what types of requirements on employers are being contemplated.

For the Department of the Interior, modifications for listing endangered and threatened species are in the queue as are changes to how critical habitat is designated. And finally, repeal of the roadless rule is listed under USDA’s planned regulatory actions. This rule, which has been on the books since 2001, established prohibitions on road construction, road reconstruction and timber harvesting in inventoried roadless areas on National Forest System lands.

Farm Bill

WIA met personally with House Agriculture Committee Chairman Glenn Thompson (R-PA) at a mill tour in Northern Pennsylvania in late August. The discussion ranged from trade and tariffs to the Farm Bill. Regarding the latter, Chairman Thompson indicated he will be pushing hard to move a Farm Bill 2.0 in September. Recall that the commodity title programs (row crop, dairy) were addressed in the budget reconciliation bill signed July 4. The roughly 20 percent of the Farm Bill left unaddressed is what will be included in this follow-up Farm Bill effort. WIA priorities such as the Wood Innovation and Community Wood grant programs, as well as the Forest Inventory and Analysis program will be part of this fall’s Farm Bill negotiations. Chairman Thompson indicated that he is exploring the possibility of using tariff-derived revenue to fund his Farm Bill. 2.0 proposal. Details on the amount and whether this is an option remain unclear, but we will have a better understanding of the situation in the coming days.