Disclaimer: Many of the developments discussed below are fluid and may change rapidly. The information is relevant and accurate as of 12:00pm EDT on July 6, 2026.
US-Mexico-Canada Agreement
The US has declined to renew the US-Mexico-Canada Agreement (USMCA), overriding the 16-
year extension of the trade agreement. The Trump administration stated that the US did not agree to renew the USMCA without changes to address existing issues such as dairy market access, rules of origin for automobiles, and blocking interference from foreign governments. The decision not to renew the agreement will require the three countries to engage in annual negotiations moving forward.
The USMCA is a trade agreement that replaces the North American Free Trade Agreement
(NAFTA). The agreement facilitates mostly tariff-free trade among the US, Mexico, and Canada for certain products.
Takeaway: The Trump administration’s decision not to renew the USMCA without negotiating key provisions introduces greater uncertainty into trade relations and sets the stage for annual negotiations.
Supreme Court
The end of the Supreme Court term brought several significant rulings affecting the Trump administration’s policy agenda. In Watson v. Republican National Committee, the Court held in a 5-4 decision that absentee ballots postmarked by election day and received within five days after the election may be counted. The ruling is a setback for Republicans and the Trump administration, which have pursued restrictions on mail-in voting before the midterm elections.
In a 6-3 decision, the Supreme Court struck down restrictions on President Trump’s authority to remove members of the Federal Trade Commission (FTC). This ruling allows President Trump to dismiss Democratic FTC Commissioner Rebecca Slaughter. The decision overturns the longstanding precedent established in Humphrey’s Executor and significantly expands presidential authority over independent boards, commissions, and regulatory agencies.
Takeaway: The Supreme Court delivered both a win and a setback for the Trump administration, expanding presidential authority over independent agencies while upholding the counting of certain mail-in ballots, preserving a key election practice ahead of the midterm elections.
Stalled Legislation in Congress
Congress faces a crowded legislative agenda as the 2026 midterm elections draw closer. With the legislative calendar narrowing, lawmakers are under pressure to address critical policy issues. The House will have eight days before August recess, and the Senate will have 15 days.
The House and Senate failed to extend the Foreign Intelligence Surveillance Act (FISA) following the nomination of Bill Pulte to serve as Director of National Intelligence. FISA
authorizes the federal government to require communications providers to disclose information on foreign intelligence targets without a warrant, providing intelligence agencies with a key tool for monitoring potential threats to national security. In addition, the House of Representatives is currently considering the National Defense Authorization Act (NDAA), a key annual measure that establishes defense policy priorities and authorizes funding levels for the Department of Defense and other national security programs. Efforts to combine consideration of the NDAA with the Safeguard American Voter Eligibility (SAVE) Act were halted after a procedural vote, with 14 Republicans joining Democrats to block the measure from advancing. Speaker Mike Johnson stated that the House would make one more attempt to pass the SAVE Act through a budget reconciliation bill.
Takeaway: Congress faces increasing pressure to advance key legislative priorities before the August recess, with only a limited number of legislative days remaining before attention shifts toward the 2026 midterm elections.
Primary Elections
Primary election results in Colorado and New York highlight the growing influence of the
Democratic Socialists of America, with several incumbent lawmakers losing their bids for
renomination.
In Colorado, Democratic Socialist Melat Kiros defeated longtime incumbent Rep. Diana DeGette (D-CO-1) in the Democratic primary for Colorado’s 1st Congressional District, marking a significant upset and signaling growing support for progressive candidates within the state’s Democratic electorate.
In New York, several high-profile primary races underscored the growing influence of progressive candidates. Democratic Socialist Darializa Avila Chevalier defeated Rep. Adriano Espaillat (D-NY-13), while former New York City Comptroller Brad Lander unseated Rep. Dan
Goldman (D-NY-10). Additionally, Assembly Member Claire Valdez secured the Democratic
nomination to succeed retiring Rep. Nydia Velázquez (D-NY-7), defeating the establishment-backed candidate in the primary.
Takeaway: Democratic Socialist candidates delivered surprising primary wins over establishment incumbents in Colorado and New York. However, the candidates will continue to test their popularity as they face the GOP nominees in the general election.
