WEEK OF SEPTEMBER 2. 2025 

Congress’ Chaotic Fall

State of Play: 

  • The House and Senate are back in Washington following August recess. 

  • Congress has three weeks of session left before federal funding runs out on September 30. Republicans are divided over whether to pursue a short-term stopgap or a full-year spending extension with cuts, as the White House’s unilateral budget moves and Democratic resistance raise the risk of a government shutdown. 

Driving the News: 

  • The US Federal Appeals Court upheld a ruling Friday that President Trump’s “reciprocal tariffs” are unconstitutional, as only Congress has the authority to impose such taxes. 

  • While the decision deals a major blow to Trump’s trade agenda, Section 232 sector-specific tariffs on steel, aluminum, and other products remain intact, and the Administration plans to expand their use as it appeals the ruling to the Supreme Court.

  • The current tariffs will remain in effect until October 14 in order to allow the Trump Administration time to appeal the decision to the Supreme Court.

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Three Things to Watch in Tech:

1. Congress’ Fall Tech Agenda: Congress has a jam packed fall schedule with shutdown conversations topping the to-do list. But that won’t keep Members from focusing on its tech policy priorities. 

  • AI remains Congress’ linchpin, and we can expect some moves in terms of new AI legislation being introduced. Senate Commerce Chair Cruz is expected to issue his AI sandbox bill in the coming days, with federal preemption over state laws remaining a flashpoint issue to watch. 

  • We expect Congress to start diving deeper into conversations around kids' online safety, including the Kids Online Safety Act (KOSA) in House Energy and Commerce, as well as certain age verification initiatives. It is still up in the air if Chair Guthrie will look to working on a federal privacy law. 

  • Congress must act before September 30 to reauthorize the Cybersecurity Information Sharing Act (CISA) before it expires. The decision could alter cyber incident liability protections and information sharing practices between the federal government and private entities. 

2. Jordan Doubles Down on Europe’s Free Speech Threats: The House Judiciary Committee is holding its highly anticipated hearing Wednesday morning to examine how European regulations affect US free speech and innovation. 

  • Republican Members, led by Chair Jordan, are expected to focus on the UK’s Online Safety Act and the EU’s Digital Services Act, which they argue restrict Americans’ online expression. They will also direct attention to the UK’s Digital Markets, Competition, and Consumers Act and the EU’s Digital Markets Act, which they say unfairly target US companies and stifle innovation.

  • The timely hearing comes as the Trump Administration continues to threaten tariffs and possible sanctions to EU nations over censorship practices of US tech companies. 

3. Members Look to AI for Health Care Solutions: The House Energy and Commerce Health Subcommittee is holding a hearing Wednesday on the ways in which AI can improve American health care. 

  • The hearing is expected to explore AI’s potential to enhance care delivery, ease administrative burdens, strengthen provider-patient relationships, and empower patients in navigating the health system, per the Committee’s announcement.

  • The hearing comes amid the House Appropriations Committee proposing a six percent decrease to the Department of Health and Human Service’s budget, $7 billion from 2025. This will likely be a talking point for Members, as they search for new ways to increase health care efficiency.

What's Happening This Week

Tech Hearings

  • The House Judiciary Committee holds a hearing on "Europe's Threat to American Speech and Innovation" - Wednesday, September 3 at 10:00 AM EST

  • The House Small Business Committee holds a hearing on "Wired for Growth: How Expanding Broadband Can Revitalize Rural Small Businesses" -  Wednesday, September 3 at 10:00 AM EST

  • The Senate Judiciary Committee holds a hearing on pending nominations - Wednesday, September 3 at 10:15 AM EST

  • The House Energy and Commerce Health Subcommittee holds a hearing on "Examining Opportunities to Advance American Health Care through the Use of Artificial Intelligence Technologies" - Wednesday, September 3 at 10:15 AM EST

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