Transportation Secretary Sean Duffy on Aug. 31 unveiled a series of anti-fraud measures, including the closure of 110 commercial driver license schools linked to 5,000 drivers who failed English-language proficiency tests and a nationwide audit of state third-party CDL testing programs.
The producer price index for inputs to new nonresidential construction rose 7.1 percent from July 2025 to July 2026 as numerous input prices accelerated to multi-year highs, according to an analysis of government data by the Associated General Contractors of America. AGC reports that the largest price increases affected petroleum products and metals that are subject to tariffs of up to 50 percent. The producer price index for diesel fuel, which reflects prices at the refinery or fuel terminal level, jumped 44.2 percent from July 2025 to last month despite declining for two months in a row. The index for liquid asphalt soared 45.2 percent year-over-year, following a 1.2 percent monthly gain in July.
The Federal Motor Carrier Safety Administration (FMCSA) has proposed codifying English-language proficiency (ELP) enforcement for commercial truck drivers, a move the agency estimates could put 9,000 drivers out of service each year. Transportation Secretary Sean Duffy announced the notice of proposed rulemaking to solidify the ELP mandate revived last year under the Trump administration. The mandate reversed an Obama-era directive in 2016 stating that FMCSA no longer had to automatically place a driver out of service (OOS) for being unable to read English-language highway signs or speak the language.
The Internal Revenue Service (IRS) released on August 6, 2026, updated frequently asked questions (FS-2026-13, FAQs) for employers and employees on how to calculate qualified overtime compensation for purposes of the overtime pay deduction. The new FAQs confirm that the 2025 transition relief will not be extended and emphasize the need for extremely thorough federal overtime analysis when calculating qualified overtime compensation for 2026. Employers must identify the portion of compensation that satisfies the FLSA overtime requirements, calculate the applicable overtime premium using the FLSA regular-rate rules and separately report qualifying amounts on Forms W-2.
The Senate Agriculture Committee was unable to advance Farm Bill 2.0 to the full Senate prior to recess when the bill failed to get enough support on a partisan vote. Committee Chairman John Boozman (R-AR) said he plans to resume his committee's markup of the bill within a day or so of lawmakers returning to Capitol Hill next month. All committee Democrats, led by Sen. Amy Klobuchar of Minnesota, voted against the bill and, with Sen. Tommy Tuberville (R-AL) not present and Sen. Mitch McConnell (R-KY) home recuperating from a fall, Republicans didn't have the necessary votes. Opposition to a deal offered by Republicans to extend state Supplemental Nutrition Assistance Program (SNAP) program compliance requirements for one year was not supported by Democrats who want at least a two-year delay to give states time to get their error rates down and grapple with budget changes.
Before leaving for an extended August recess both the House and the Senate passed a continuing resolution (CR) to keep the government operating past the September 30 end of FY 2026. Congress wanted to get this issue off their plates before heading home to campaign for the midterm elections. A CR was necessary because while all 12 annual appropriations bills have been reported out of committee, and three bills were subsequently passed by the full House, the Senate has not moved forward on any of these measures.
The House Transportation and Infrastructure Committee approved legislation authorizing $14 billion over four years for the Clean Water State Revolving Fund and $16.5 billion over five years for the Drinking Water State Revolving Fund, along with 133 new feasibility studies for locally proposed water infrastructure projects. The funding authorization was included in the Water Resources Development Act (WRDA) which authorizes funding for Corps of Engineers projects. Congress has enacted a bipartisan WRDA every two years since 2014.
John Deere has agreed to a proposed settlement with the Federal Trade Commission (FTC) to make the same repair tools used by its dealers available to farmers and independent repair shops “on fair and reasonable terms." The proposed settlement would end an antitrust lawsuit brought by the FTC and state attorneys general in Illinois, Arizona, Michigan, Minnesota and Wisconsin.
The Senate Agriculture Committee is scheduled to take up the Senate version of the farm bill on Thursday, August 6. A draft bill has made available for review by committee members and outside groups. The two key issues that have slowed action in the Senate - the authorization of year-round, voluntary sales of E15, and a one-year delay before certain states must begin sharing the benefit costs of the Supplemental Nutrition Assistance Program (SNAP) with the federal government – have been addressed in the draft. While chairman John Boozman had initially intended to keep the contentious E15 issue out of the farm bill, corn state senators believe this is the best opportunity to resolve the issue and pushed for its inclusion. Of additional concern to LICA members in the committee’s draft is the diversion of nearly $2 billion in funding from the Environmental Quality Incentives Program (EQIP) below the levels Congress established just last year to cover other priorities.
The House recessed last week for five weeks and the Senate is scheduled to follow suit by the end of this week. When both return in September there will be a short legislative session before members leave again to return home to campaign for the upcoming midterm elections. Prior to departure the House completed action on a short-term FY 2027 continuing resolution (CR) that will keep the government operating until December 4.