Policy Week in Review - September 18, 2026
In This Week’s Edition
Russia Sanctions Bill Heads to the President’s Desk
Crypto Currency Regulation Falls Short in Senate
College Athlete Compensation Bill on the Path to Passage
Data Center Legislation Passes House, Faces Senate Uncertainty
Fed Raises Interest Rates
EPA Announces Repeal of Biden-Era Regulations
Trump Threatens Retaliatory Tariffs on EU in Canada Trade Dispute
Iran-Backed Houthis Escalate Conflict
Russia Sanctions Bill Heads to the President’s Desk
The Senate-passed Russia Sanctions bill (H.R. 5334) cleared the House and and will become law before the midterms. the House was able to passed the bill in bipartisan fashion by a vote of 262-159 before recessing until the midterm elections.
There was initially doubt the bill could pass because Democrats opposed expanded tariff authority under the bill. But that concern was alleviated by Democrat defections during the vote. In the end, 58 Democrats joined 203 Republicans to impose sanctions and tariffs on Russia and their trading partners in an effort to end the invasion of Ukraine.
New Tariff Authority Could Have Major Economic Impact: The bill (Sec. 112) requires the President to impose a tariff of up to 500% on all Russian energy products including oil, natural gas, LNG, and coal. This will have an instant impact on the cost of energy from Russia and shift world markets.
Perhaps more significantly, the bill (Sec. 113) requires U.S. Trade Representative to increase tariffs "to a rate of up to 100%” on all imported products from the largest five importers of Russian crude oil or natural gas. The bill requires the imposition of these new tariffs on “the top 5 countries facilitating Russian oil sanctions evasion.”
These three new categories of secondary sanctions would open up new tariffs of up to 100% on all products from the following countries according to USTR:
Azerbaijan
Belgium*
China
France*
Hungary*
India
Japan*
Singapore
Slovakia
Turkiye
UAE
Under current Section 301 tariffs, nations impacted by the legislation are subject to duties of either 10% or 12.5% as a baseline on all products imported into the U.S. There are also industry and product specific tariffs assessed at higher levels.
Solely assessing the baseline tariffs, countries impacted by the new sanctions are subject to $86 billion in tariffs annually. The new legislation allows the President to increase tariffs on covered imports to 100% within 30 days. If the President were to apply 100% tariffs to nations subject to the secondary sanctions would total $736 billion in duties annually.
Country | 2025 U.S. Imports | Current Baseline Tariff Percentage* | Annual Value of Current Baseline Tariff Revenue |
Azerbaijan | N/A | N/A | |
Belgium+ | 10% | $2.7 billion | |
China | 12.5% | $38.6 billion | |
France+ | 10% | $6.8 billion | |
Hungary+ | 10% | $1.2 billion | |
India | 10% | $10.4 billion | |
Japan | 12.5% | $18.2 billion | |
Singapore | 12.5% | $4.8 billion | |
Slovakia+ | 10% | $658 million | |
Turkiye | 12.5% | $2 billion | |
UAE | 12.5% | $96 million |
+ Subject to European Union Tariffs
*Not inclusive of 232 Product-Specific Tariffs
The legislation has exceptions that exempt countries from tariffs if their total purchases are less than 15% of total Russian natural gas exports and the country “has taken significant steps to reduce its imports or natural gas that originated from the Russian Federation.” The countries with asterisks meet those criteria and would be exempt from the new secondary tariffs according to USTR.
Under the bill, USTR would have 30 days from the bill’s enactment to set and impose the secondary tariffs. This would obviously be another huge tariff tool for President Trump to wield during talks with Chinese President Xi in Washington, D.C. next week.
Crypto Currency Regulation Falls Short in Senate
In the Senate, the Clarity Act (H.R. 3633) failed to reach the 60-vote threshold needed to move forward. The bill would establish federal regulatory standards from crypto currency wherein digital assets pegged to the dollar would be regulated as securities by the the Securities and Exchange Commission (SEC) while other crypto like Bitcoin would be regulated like a commodity by the Commodity Futures Trading Commission (CFTC). Supporters of the bill, including the White House, noted that the legislation would likely bring trillions of sidelined dollars into the U.S. economy and help spur global adoption of stablecoins backed by the U.S. dollar.
Every Democrat and three Republicans (Senators Susan Collins of Maine, Josh Hawley of Missouri, and Jerry Moran of Kansas) joined with all Democrats in opposition (49-50). Despite bipartisan negotiations that have taken place over months, Democrats ultimately used ethics provisions as an excuse to oppose its package. Congress will try again in the lame duck but the bill’s failure this week is a major setback.
College Athlete Compensation Bill on the Path to Passage
This week, the Senate passed a procedural motion to consider the Protect College Sports Act (S.4668) by a 74-24 vote. The bill sets new federal regulations for the collection and disbursement of university spending on name, image, or likeness (NIL) agreements for college student athletes. It statutorily sets a legal five year eligibility window for participating in college sports. The legislation also caps the amount of college revenue that can be spent on NIL at 22%, sets rules for distributing NIL, and gives the NCAA an exemption from antitrust lawsuits. The bill has momentum and will likely be signed into law by the end of the year.
Data Center Legislation Passes House, Faces Senate Uncertainty
The House overwhelmingly passed the Ratepayer Protection Act (H.R.9340), by a 417-3 vote. The bill is a bipartisan effort to address consumer concerns around data centers and utility bills. The bill would require state utility regulators to consider implementing new federal standards on large-load data centers that would make them responsible for any costs associated with the generation, transmission, or distribution upgrade of electric service necessary for their operation. It builds on the President's voluntary Ratepayer Protection Pledge, announced earlier this year. On Thursday, Democrats in the Senate blocked Senator Jon Husted’s (R-OH) attempt to fast-track consideration of the bill in the Senate.
Fed Raises Interest Rates
In a move that was largely expected, the Federal Reserve voted unanimously on Wednesday to raise interest rates for ¼ of a percentage point in response to elevated inflation. President Trump took to Truth Social after the announcement to argue that interest rates should be lowered (“1% or less”) and said that “If we stopped Trading with every country that we have a Deficit with, which is most of them, we would make, at least, 1.5 Trillion Dollars a year,” and that the U.S. is “carrying” almost every country in the world. The President repeated the same message at a campaign rally in North Carolina on Wednesday evening.
EPA Announces Repeal of Biden-Era Regulations
On Monday, the Environmental Protection Agency (EPA) announced a new proposal that would repeal “the majority of the Biden administration’s greenhouse gas requirements for U.S. power plants.” EPA Administrator Lee Zeldin said that the action would save the U.S. $310 billion and bolster America’s energy security. Additionally, the EPA has proposed rescinding Biden’s greenhouse gas regulations for the entire U.S. power sector, which it estimates will save another $370 million in compliance costs.
Trump Threatens Retaliatory Tariffs on EU in Canada Trade Dispute
On Wednesday, President Trump threatened to impose “serious tariffs” on the European Union (EU) after European Commission President Ursula von der Leyen opened the door for Canada to become an associate member of the EU. The offer comes as trade tensions between the U.S. and Canada have risen over the past few months. President Trump responded with the threat of tariffs and called Canada a “terrible trade partner.”
Iran-Backed Houthis Escalate Conflict
Over the past week, Iran-backed Houthi militants have rapidly escalated fighting in the Middle East after seizing Yemeni towns along the Red Sea and islands in the Bab el-Mandeb Strait. Serving as a strategic chokepoint to the Red Sea and handling 10-12% of maritime trade, the Bab el-Mandeb Strait is especially important for the international flow of oil while control over the Strait of Hormuz is being contested. Following this initial offensive, Houthi groups began launching drone and missile strikes at Saudi Arabian targets and are accused of attacking Mecca. Based in Yemen, the Houthis were officially designated as a Foreign Terrorist Organization by the Trump Administration in March of 2025.
Despite the opening of a new front in the ongoing war with Iran, President Trump has expressed optimism over a potential thaw with Tehran, saying that he had spoken with Iran directly. The President is expected to meet with Gulf leaders at next week’s United Nations General Assembly meeting to discuss next steps in the war. Meanwhile, by all accounts, Operation Economic Outcast continues to be effective in isolating Iran from the global economic system, starving the country of foreign currency and trade and pushing them closer to the bargaining table.
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