Defense budget structure draws McConnell rebuke; Democrats flood tape on DOJ, rights

In an opening statement at the Senate Appropriations Subcommittee on Defense hearing on the Air Force FY27 budget request, Sen. Mitch McConnell, R-Ky., offered praise for specific line items while mounting a pointed structural critique of the broader defense request.

McConnell said he was "encouraged to see the Department acknowledge the need for the E-7 wedgetail airborne battle management aircraft" and welcomed investment in F-35 spares. But he warned that placing F-35 procurement primarily in reconciliation spending undercuts the program's sustainability. "If fielding the F-35 remains an operational necessity both for the United States and for key allies, there's really no excuse for not placing it squarely in full-year appropriations," McConnell said.

He singled out multi-year procurement contracts as a particularly glaring contradiction. "The need to budget for them annually is right there in the name," McConnell said. "But it's more than just a contradiction in terms. It's also a recipe for major disruptions in the very possible event that party-line reconciliation fails."

McConnell also acknowledged the sacrifice of American airmen, noting a KC-135 crew lost over Iraq, and thanked Space Force Chief Gen. Saltzman, who is retiring, saying: "I know we'll both have more time for UK — and UofL — basketball this coming season."

Four Democratic senators reintroduced the Freedom to Travel for Health Care Act Tuesday, timing the rollout to the approaching four-year anniversary of the Supreme Court's Dobbs decision on June 24. Sens. Catherine Cortez Masto, D-Nev., Kirsten Gillibrand, D-N.Y., Sheldon Whitehouse, D-R.I., and Patty Murray, D-Wash., led the effort.

"For women in states where abortion became illegal over the last four years, the right to travel for abortion care is a lifeline," said Cortez Masto. "We cannot stop pushing back against any attempts to limit this right and make women second-class citizens in America."

Gillibrand's office separately released its own version of the announcement. "When the Supreme Court overturned Roe, it stripped over 170 million Americans of their constitutional rights to privacy and bodily autonomy," Gillibrand said. "The Freedom to Travel for Health Care Act would reaffirm the constitutional right to travel freely across state lines and empower Americans to take action against those who seek to block women from traveling to access the reproductive health care they need."

The legislation would prohibit states and localities from restricting interstate travel for abortion services, protect out-of-state providers from prosecution, and create a private right of action for individuals whose travel rights are violated. Murray cited a specific case: "In one relevant case, a New York doctor was fined and criminally charged for providing mifepristone to patients in Texas and Louisiana."

Sens. Mark R. Warner and Tim Kaine, both D-Va., joined 22 Democratic colleagues Tuesday in pressing Acting Attorney General Todd Blanche over the unexplained removal of the Federal Prosecution of Election Offenses manual from the Justice Department's website.

The senators quoted the manual's own language in their letter: the deterrence objective of federal election-crime prosecutions "is achieved by public awareness of the Department's prosecutive interest in, and prosecution of, election fraud — not through interference with the process itself."

The letter warned that removal of the guidance, combined with the administration's ongoing voter-roll litigation, creates conditions for politically motivated legal action ahead of the midterms. "While the Department's ongoing voter roll lawsuits are failing across the country, we are concerned that those efforts, which were calculated to compel states into inaccurately purging voters, may be the pretext for more meritless pre- and post-election challenges, including interfering with election certification," the senators wrote.

The letter was led by Sens. Alex Padilla, D-Calif., Dick Durbin, D-Ill., and Sheldon Whitehouse, D-R.I. The senators also asked whether Trump allies would contribute to any revised version of the manual.

More than 30 Democratic senators demanded Tuesday that Transportation Secretary Sean Duffy reverse an October 2025 interim final rule that effectively sidelined the Disadvantaged Business Enterprise and Airport Concessions Disadvantaged Business Enterprise programs. The effort was led by Sen. Raphael Warnock, D-Ga., with separate announcements from Sens. Mark Kelly, D-Ariz., and Angela Alsobrooks, D-Md.

Alsobrooks, ranking member of the Environment and Public Works Subcommittee on Transportation and Infrastructure, said the IFR has put "more than 50,000 high-performing small businesses and approximately 500,000 workers" on the sidelines. The joint letter warned: "If the Department proceeds with its murky implementation of the IFR, it will be solely responsible for the chaos that follows. As long as DBE and ACDBE small businesses remain sidelined, hardworking Americans will be faced with higher costs from reduced competition, increased traffic, longer commutes, and an incomplete transportation system."

Alsobrooks added: "I am proud to partner with my friend Senator Warnock in demanding that small businesses owned by minorities, women, or other socially and economically disadvantaged individuals get fair access to federally funded highway, transit, and airport contracts."

Kelly's release noted the recertification process requires applicants to describe "social and economic disadvantage" and past discrimination "without reference to racial and gender characteristics" — a standard the senators called impractical and a break from decades of judicial precedent.

Sen. Adam Schiff, D-Calif., introduced the Preventing Payouts for Insurrectionists Act on Tuesday, targeting what he described as White House efforts to compensate individuals convicted of offenses related to the January 6 Capitol attack or interference in the 2016 and 2020 presidential elections.

"President Donald Trump still wants to pay off violent insurrectionists who attacked police officers on January 6th, despite any claims from members of his administration that say otherwise," Schiff said. "Our taxpayer dollars should not be used to pay out criminals, and we can pass a law right now to prevent this president or any future administration from paying off their friends and political allies."

The bill would amend the Federal Tort Claims Act to block convicted individuals — including those subsequently pardoned — from pursuing claims against the government, retroactively mandate the return of any federal payouts received since January 20, 2025, and authorize state attorneys general to enforce compliance through civil suits. Schiff's release cited Justice Department officials signaling interest in using Federal Tort Claims Act settlements as an alternative compensation pathway.

Sen. Josh Hawley, R-Mo., published an op-ed in The Free Press on Tuesday arguing that the federal government must take an active role in shaping how artificial intelligence affects American workers, communities, and infrastructure — or cede that shaping to Silicon Valley.

Hawley opened with the story of Festus, Missouri, where a city council approved a $6 billion AI data center project over community objections, then watched every incumbent up for reelection lose their seat. "We cannot afford to leave those choices to the venture capitalists and the engineers in Palo Alto," Hawley wrote.

On jobs, Hawley cited an Economist report that "nearly one in five American workers now believes AI or automation is likely to replace them" and argued that displacement costs fall on working people rather than those giving TED Talks. "Work, in any case, is about more than wages," Hawley wrote. "It is what our Puritan forebears called a vocation or 'calling' — labor that builds a community, supports a family, and gives someone their independence."

The op-ed follows a string of Hawley AI bills, including the GUARD Act, GRID Act, AI-Related Job Impacts Clarity Act, and AI Accountability and Personal Data Protection Act.

Senate Majority Whip John Barrasso, R-Wyo., took to the floor Tuesday to promote Trump Accounts — tax-advantaged investment accounts for children created under the Working Families Tax Cuts law — citing Treasury Department analysis showing 97 percent of Americans received a tax cut this year.

"The Working Families Tax Cuts law put more money into people's purses and pockets," Barrasso said. He detailed specific provisions: 7.5 million Americans received an average $7,000 deduction from No Tax on Tips, 29 million received an average $3,100 from No Tax on Overtime, and 35 million seniors received an average $7,500 deduction on Social Security.

Barrasso announced that Trump Accounts go live July 4, with newborn accounts seeded at $1,000 and annual contribution limits of $5,000. He cited pledges from Michael Dell and the cryptocurrency exchange Kraken as early contributors.

"Every single Democrat in this chamber voted against every single one of these tax cuts," Barrasso said. "Democrats voted to raise taxes by $4 trillion. This is the fundamental difference between Republicans and Democrats."

Sen. Jeff Merkley, D-Ore., led a group of Senate Democrats Tuesday in warning Agriculture Secretary Brooke Rollins and Deputy Secretary Stephen Vaden that staffing reductions at three USDA agencies — APHIS, FSIS, and AMS — are undermining the nation's ability to respond to the first domestic New World Screwworm detection in 60 years.

The senators detailed county-level losses: "APHIS, for example, began 2025 with employees stationed in 1374 counties. By year's end, headcount had fallen to zero in 241 of those counties." In Merkley's home state, they noted, "Crook County now has no food safety staff at all."

The letter argued that physical co-location of senior career officials is irreplaceable in crisis response. "When hantavirus, New World screwworm, or e-coli hits our shores or our shelves, nothing replaces getting in the room physically with the leadership of other federal agencies — including the Food and Drug Administration, the Homeland Security Department, and the Defense Department — to effectively protect our nation's food supply and public health," the senators wrote.

The letter was co-signed by Sens. Amy Klobuchar, D-Minn., Adam Schiff, D-Calif., Dick Durbin, D-Ill., Edward Markey, D-Mass., Ron Wyden, D-Ore., Tina Smith, D-Minn., Chris Van Hollen, D-Md., Ruben Gallego, D-Ariz., and Cory Booker, D-N.J.

Sen. Kirsten Gillibrand, D-N.Y., and 15 Democratic colleagues called on CFTC Chairman Michael Selig Tuesday to strengthen oversight of prediction markets, submitting formal comments on the agency's proposed rulemaking.

"Financial markets must be fair, transparent, and not tilted in favor of those with privileged access," Gillibrand said. "The CFTC must implement strong, commonsense guardrails to protect consumers, prevent insider trading, and hold prediction market platforms to high standards of integrity."

The letter cited a "significantly higher proportion of retail participants than traditional derivatives markets" and "increasing reports of potential misconduct — including insider trading and market manipulation." The senators asked the CFTC to prevent listing of event contracts "susceptible to manipulation or abuse" and to focus the industry on "contracts with clear economic use cases, rather than purely speculative offerings with limited hedging value."

Gillibrand introduced the Prediction Market Act of 2026 in April, which would ban elected officials from trading on prediction markets.

Sens. Jacky Rosen, D-Nev., and Mike Rounds, R-S.D., introduced the bipartisan Strategic Unmanned Systems Partnership Act on Tuesday, which would create a working group between the Defense Department and the Armed Forces of Ukraine to co-develop, co-produce, and acquire Ukrainian-designed drones and unmanned surface vehicles.

"The use of drones and other unmanned systems has proven to be a central feature of modern conflict, and after more than four years of resisting Russia's illegal invasion, Ukraine has become a leader in rapidly developing these emerging technologies," Rosen said.

Rounds framed it as a two-way capability transfer. "Our legislation would create the Strategic Defense Innovation Working Group between the United States and Ukraine to bolster unmanned system capabilities for both our nations," he said.

A bipartisan bill championed by Sen. Jon Ossoff, D-Ga., to close a gap in federal background check requirements for child caregivers passed the Senate, Ossoff announced Tuesday. The Comprehensive Health and Integrity in Licensing and Documentation (CHILD) Act was originally introduced by Sens. Dick Durbin, D-Ill., and Chuck Grassley, R-Iowa.

"Georgia parents need the tools to protect their children and the confidence that caregivers have had a thorough background check," Ossoff said.

The bill would uniformly restore access to nationwide background checks for all caregivers, helping employers hire qualified candidates. Ossoff separately announced $1,005,000 in federal funding for Habitat for Humanity of Hall County in Gainesville, Georgia — delivered through bipartisan government funding legislation enacted February 3 — to survey and begin construction on a new affordable housing development.

A bipartisan group of four senators introduced the Fencing Eligibility for New Conservation Equipment (FENCE) Act on Tuesday, which would authorize USDA to include virtual fencing as an option under the Emergency Conservation Program — a response to wildfire damage that has left ranchers in Nebraska, Colorado, and New Mexico seeking more flexible recovery tools.

"Nebraska's ranchers are the best in the world. They've shown it this year in response to this spring's devastating fires across our state," said Sen. Pete Ricketts, R-Neb. "Ranchers recently shared with me that one-size-fits-all policies are hindering their ability to rebuild."

Sen. Martin Heinrich, D-N.M., said virtual fencing also addresses wildlife concerns. "As a sportsman, I've also seen how built infrastructure can dramatically alter wildlife migration corridors," Heinrich said. The bill was co-introduced by Sens. Deb Fischer, R-Neb., and Michael Bennet, D-Colo.

Sens. Mark R. Warner and Tim Kaine, both D-Va., sent a letter Tuesday pressing the Office of Personnel Management on what they described as stalled progress in retaining federal employees who are military spouses, citing a roundtable Warner held in Hampton Roads the previous week.

"Military service is shouldered by the entire family, with partners and spouses, kids, parents, and other family members working to balance the challenges that exist back home while a loved one is deployed," the senators wrote. "Data collection by OPM shows that agencies are falling short in military spouse retention, despite direction to agencies to work to meet the needs of military spouses."

At the roundtable, military spouses described having formal requests for flexible schedules and telework denied by supervisors. The senators asked OPM to determine root causes, identify best practices, direct agencies to implement flexibilities, and respond to Congress if additional legislation is needed. They requested a reply by July 10.

In a floor statement, Sen. Jim Banks, R-Ind., highlighted Indiana's role in the defense industrial base and welcomed the Pentagon's decision to assign a One-Star Reserve Flag Officer to Naval Weapons Station Crane.

"Indiana sits at the crossroads of America. But we sit at the crossroads of more than just freight traffic and geography. Indiana is also the crossroads of our country's defense industrial base," Banks said. He cited BAE Systems, L3Harris, Raytheon, Ultra Maritime, and General Dynamics operations in Fort Wayne; steel plates from Burns Harbor forged for Navy ships; and hypersonics research at Purdue and Notre Dame.

Banks said he "secured almost half a billion dollars for the MACH-TB program" and noted $150 million in the One Big Beautiful Bill for the Prometheus Project at Crane, a new solid rocket motor production facility. "Crane is the third-largest Navy base in the world," Banks said.

Sen. Jon Husted, R-Ohio, joined Sen. Jerry Moran's Veterans' ACCESS Act, which would establish community care access standards as a baseline and expand mental health and addiction treatment referrals. "No veteran — especially one facing cancer, addiction, chronic pain or a mental health condition — should have to wait weeks or months for the care they need," said Moran.

Sen. Ashley Moody, R-Fla., promoted the SBA Patriot Pitch competition, a $1 million prize pool for established small businesses. "Florida is quickly becoming renowned as an entrepreneur's paradise, and for great reason — we've seen nearly 700,000 new businesses formed just last year alone," Moody said. Ten semifinalists will be selected at the Great American State Fair this summer, with five advancing to a Washington, D.C. final between September 8 and 18.

Sen. Todd Young, R-Ind., chaired a Senate Commerce subcommittee hearing on transportation technology. "If there are avenues that could allow for industry to provide the same or greater level of efficacy, while increasing safety, then I believe Congress should remove the red tape prohibiting this innovation," Young said, also warning: "Our adversaries won't wait for us to tie our shoes."

Sen. Tommy Tuberville, R-Ala., recognized Air Force Senior Airman Larry Thomas of Eufaula as his June Veteran of the Month, citing Thomas's role supporting the first human orbital spaceflight in 1962 and his family's multi-generational military service.

Signals

• volumeTuesday's 26 releases ran 71.7% below the Tuesday baseline of 91.8, the lowest relative volume in the current tracking window.
• coordinatedThe Freedom to Travel for Health Care Act was announced in separate, near-simultaneous releases by both Sen. Cortez Masto and Sen. Gillibrand within 84 minutes of each other, each listing the other as a co-lead — a dual-announcement rollout timed to the Dobbs four-year anniversary.
• coordinatedThe DBE/ACDBE letter generated separate releases from at least two signatories — Kelly and Alsobrooks — in addition to the lead Warnock announcement, a pattern consistent with coordinated rollout across members with distinct committee standing.
• silent breaksSen. Mike Rounds, R-S.D., listed as quiet for 19 days, broke his silence today as a co-sponsor of the Rosen-Rounds Strategic Unmanned Systems Partnership Act.
• silent breaksSen. Tina Smith, D-Minn., listed as quiet for 41 days, appeared as a co-signer on the Merkley USDA staffing letter but did not issue an independent release.

Quiet desks

Senators with no release in two weeks or more.

• Sen. Alan Armstrong, R-OK—
• Sen. Tina Smith, D-MN41d
• Sen. Thom Tillis, R-NC36d
• Sen. Ron Johnson, R-WI29d
• Sen. Mazie K. Hirono, D-HI20d
• Sen. Roger F. Wicker, R-MS19d