Thursday, July 2, 2026

This Week's Drought Summary (7/2)

Active weather delivered heavy showers and locally severe thunderstorms east of the Rockies, with a few exceptions. Some of the heaviest rain, locally 4 to 8 inches or more, fell from portions of the central and southern Plains into the Ohio and Tennessee Valleys, leading to pockets of flash flooding and lowland flooding. At least five flood-related fatalities were reported in Kentucky and Tennessee. Exceptions to the wet pattern included the western Gulf Coast region, parts of the Southeast, and an area stretching from the east-central Plains into the lower Great Lakes region. At the start of the drought-monitoring period, hot, dry weather dominated the West. However, a pattern change soon delivered cooler weather across the western U.S., along with widespread Northwestern precipitation. Wet snow blanketed some high-elevation sites in the northern Rockies. During the transition from hot to cool weather, gusty winds and low humidity levels favored wildfire ignition and rapid expansion, especially in portions of the eastern Great Basin and Four Corners States. At the end of June, more than a dozen active Western wildfires had scorched more than 10,000 acres of vegetation apiece, with the largest being the 94,000-acre Cottonwood Fire near Beaver, Utah. On June 28, three federal firefighters perished in the Knowles Fire, west of Grand Junction, Colorado.


Northeast

Weather conditions were mixed during the drought-monitoring period, with streaks of heavy rain affecting some areas while other places remained mostly dry. Generally, wet weather continued to trim abnormal dryness (D0) and moderate drought (D1) across northern New England. Meanwhile, significant rain mostly bypassed southern New England, leading to status quo or slightly worsening drought. The southern tier of the region, from West Virginia to Delaware and New Jersey, mostly experienced drought improvement, except for a few spots in the northern mid-Atlantic. On June 28, the U.S. Department of Agriculture reported that statewide topsoil moisture in agricultural regions was rated more than one-half very short to short in Maryland (79%), Delaware (76%), Rhode Island (70%), Connecticut (55%), and New Jersey (54%).

Southeast

Like the Northeast, highly variable rainfall totals were observed during the drought-monitoring period. Some areas, such as northern Alabama and northwestern Georgia, were completely dry, while heavy showers soaked northeastern North Carolina and neighboring areas. Worsening drought was largely limited to the coastal plain of South Carolina and southeastern North Carolina, while pockets of drought improvement were noted in several areas, including southeastern Virginia and northern Florida. Florida’s peninsula continued to await more regular seasonal rainfall, with lingering long-term drought impacts on hydrology. Florida’s two largest current wildfires—the Atlantic 06 and Rookery Fires—have collectively burned more than 10,000 acres of vegetation, with the former having scorched nearly 5,800 acres a few miles west of Pompano Beach. On June 28, the U.S. Department of Agriculture indicated that statewide topsoil moisture in agricultural regions was rated more than one-half very short to short in Virginia (60%) and South Carolina (53%). On that date, Virginia also led the region with 50% of its pastures rated in very poor to poor condition.

South

The South experienced a second consecutive week of widespread reductions in drought coverage. In fact, flash flooding and lowland flooding plagued some of the hardest-hit areas, including the Arklatex and the southeastern corner of Oklahoma, where 2-week rainfall totals locally exceeded 10 inches. Much of the northern tier of the region, from Oklahoma to Tennessee, also received multiple rounds of heavy rain. Although mostly dry weather prevailed in south-central Texas, some additional improvements were introduced, as impacts of recent downpours on long-term drought became more apparent. By June 28, the U.S. Department of Agriculture indicated that statewide topsoil moisture in agricultural regions was 28% surplus in Louisiana.

Midwest

Torrential rainfall struck the southern tier of the region, easing or eradicating drought. Parts of Kentucky were especially hard hit by flash flooding. Some of the heaviest rain fell on June 27, when daily-record totals at official airport observation sites included 3.06 inches in Evansville, Indiana, and 2.34 inches in Bowling Green, Kentucky. By June 28, the U.S. Department of Agriculture indicated that topsoil moisture in agricultural regions was rated 39% surplus in Illinois, along with 37% in Missouri and 34% in Indiana. Midwestern summer crops remained mostly in good shape, with roughly two-thirds of the U.S. corn (67%) and soybeans (65%) rated in good to excellent condition on June 28, according to USDA. However, patchy dryness (D0) and moderate to severe drought (D1 to D2) existed across the upper Midwest, with rain trimming drought coverage in some areas but bypassing others.

High Plains

Like other areas in the central and eastern U.S., a patchwork quilt of showers provided drought relief in some areas. Some of the heaviest rain, occasionally accompanied by thunderstorm-driven high winds and large hail, fell in portions of all six states in the region. However, southeastern Nebraska was one area that missed all the rain. One of the most impressive outbreaks of severe weather occurred on the night of June 28-29, when a swath of wind damage stretched from northwestern Nebraska into southeastern North Dakota and beyond. An unofficial wind gust to 131 mph was clocked in Hyde County, South Dakota, while a gust to 112 mph was recorded at a mesonet station near Ree Heights in Hand County, South Dakota. Despite all the rain, the U.S. Department of Agriculture reported that rangeland and pastures continued to struggle. On June 28, statewide rangeland and pastures were rated 66% very poor in Nebraska, along with 63% in Colorado.


West

During the transition from hot weather to cooler conditions, gusty winds fanned recently ignited wildfires across portions of the eastern Great Basin and the Four Corners States. Fire ignition and spread was also abetted by dry thunderstorms, low humidity levels, and near-record to record-setting dry fuels. Pockets of worsening drought were observed in the Four Corners States, including a notable expansion of extreme drought (D3) across the northern half of New Mexico. In the Northwest, however, heavy precipitation—including high-elevation snow—eased drought from central Idaho into western and northern Montana. Less significant precipitation fell in the Pacific Northwest. According to the U.S. Department of Agriculture on June 28, Western States reporting rangeland and pastures rated at least one-half very poor to poor included Arizona (70%) and Colorado (63%), while states with topsoil moisture more than one-half very short to short were Colorado (89%), Wyoming (81%), Utah (69%), New Mexico (68%), Nevada (65%), and Oregon (62%).


Caribbean

In Puerto Rico, short-term dryness less to further development or expansion of abnormal dryness (D0) and moderate to severe drought (D1 to D2). Drought-related impacts extend to agriculture, leading to crop stress, and are beginning to reduce the availability of water in some municipalities.

Severe dryness (D2) continues across all locations this week. Parts of the Christiansted and Frederiksted, St. Croix, areas recorded 0.5 to 0.7 inch this past week while most other locations across the U.S. Virgin Islands (USVI) reported only a few tenths of an inch at most. For June, precipitation totals ranged from 1.3 to 2.2 inches on the wetter locations across St. Croix while less than an inch fell on most sites in St. John and St. Thomas. Rohlsen Airport near Christiansted received only a few tenths of an inch of rain during June, and 60-day amounts were only 1.18 inches (normal is 5.42 inches). Meanwhile, King Airport near Charlotte Amalie on St. Thomas received only 0.11 inch during June and 0.65 inch since April 25, with normal for the latter period being 5.89 inches. At East Hill on the eastern end of St. Croix, Just 1.89 inches has fallen since April 17, whereas the normal for the period is 6.91 inches. Charlotte Amalie rainfall was more than 9.5 inches below normal dating back to mid-October 2025, although most locations across USVI were not as dry during this 8.5-month period. At the drier locations across the Islands, totals over the past 1 to 3 months were at or near record lows for the period.

Pacific

Spotty precipitation had little impact on the recently introduced area of abnormal dryness (D0) in northwestern Alaska, while the remainder of the state remained free of dryness and drought.

In Hawaii, significant shower activity was limited to windward locations, which is typical of summer. Hawaii’s remaining patches of abnormal dryness (D0), on Maui and the Big Island, respectively, were again unchanged, as much of the Aloha State continues to benefit, hydrologically, from a wet spring.

There are no dryness nor drought designations anywhere in the monitored locations across the U.S. Affiliated Pacific Islands.

Pago Pago in American Samoa recorded moderate rain this past week, pulling June totals above 4 inches. Following over 20 inches of rain in May, this was sufficient to keep impactful dryness at bay.

Koror in Palau recorded over 2 inches for the week, bringing June totals to about 5 inches, which is one-third of normal. But despite short-term dryness (30-day rain totals more than 8 inches below normal), the June total near 5 inches following a May with almost 20 inches sufficiently squelched impactful dryness for the time being.

In the Commonwealth of the Northern Mariana Islands (CNMI), Tinian reported 2.67 inches of rain last week while Saipan reported 3.38 inches. This brought Saipan’s June total to 8.2 inches, which is considerably above normal. This prompted the removal of abnormal dryness (D0) from Tinian and Saipan. Rota, which was not in D0 last week, recorded nearly 2 inches over the last week of June.

Rainfall in Guam is slightly below normal for the last 30 days to 6 weeks. With a day left, June precipitation totaled 5.31 inches, about 78 percent of normal or 1.20 inches below normal. Earlier, May brought 8.89 inches of rain, more than twice normal. As a result, impactful dryness is not apparent at this time.

In western sections of the Federated States of Micronesia (FSM), Several tenths of an inch to nearly 1.5 inches were observed across Yap and Woleai last week. Generally 6 to 6.5 inches of rain fell during June, which is only a bit over half of normal at both sites. May rainfall was much more plentiful, however, ranging from 14.0 to 15.6 inches. As a result, no impactful dryness is indicated at this time.

Farther east, no dryness is assessed at Chuuk, Lukunor, Nukuoro, and Kapingamaringi in the central FSM. Weekly rainfall ranged from about 1.2 inches at Nukuoro to 3.0 inches at Chuuk, and June totals across the region increased to between 14 and 22 inches. This is considerably more than needed to keep up with environmental and human water demand.

In the eastern reaches of FSM, between 1.6 and 2.1 inches fell around Kosrae and Pohnpei last week, bringing June totals to 9.35 and 7.80 inches, respectively. This represents one-half to two-thirds of normal for the month. However, this region was doused by 26 to 35 inches of rain in May, squelching any impactful dryness for the near future.

Across the western Republic of the Marshall Islands (RMI), Jaluit reported just a tenth of an inch of rain while heavier amounts fell on Kwajalein (1.84 inches) and Ailinglapalap (2.37 inches). Jaluit and Ailinglapalap have mild rainfall deficits on relatively short time scales – about three-quarters of normal fell during June in Ailinglapalap, and 60-day totals were about 2.5 inches below normal at Jaluit. However, those locations received 11.0 to 12.5 inches of rain in May, precluding any dryness designation at this time. The short-term in Kwajalein was wetter, with over a foot of June rain reported compared to a normal below 8 inches. Therefore, no dryness designation is indicated there.

In the western RMI, about 0.6 inch of rain was reported last week in Wotje while 1.56 inches fell on Majuro, 1.65 inches on Utirik, and 2.04 inches on Mili. Since the beginning of May, rainfall has been persistently though not dramatically below normal at Utirik, with 11.35 inches reported while the normal was 14.71 inches. This has not yet been sufficient to induce impactful dryness, but the situation justifies close monitoring for the near future. More robust May rains fell on other locations in western RMI, with Mili, Wotje, and Majuro recording 12.85 inches, 13.51 inches, and 15.22 inches, respectively. These totals were considerably above normal at all 3 locations, precluding any impactful dryness there.

Looking Ahead

Hot, humid weather will persist through the Independence Day weekend in most areas along and east of a line from the southern High Plains into the upper Midwest. Some of the most extreme heat will affect the middle Atlantic States, parts of which will experience multiple days with triple-digit (100-degree) heat. Although the Midwest will remain hot, temperatures in most areas will barely reach stressful thresholds (95°F of higher) for corn and soybeans entering the weather-sensitive reproductive stage of development. Furthermore, many Midwestern crops are progressing through the hot spell with adequate to locally surplus soil moisture. Meaningful precipitation during the next 5 days should be limited to parts of Florida’s peninsula and the upper Midwest; both areas could see 1 to 4 inches, with locally higher totals. Other areas of the central and eastern U.S. should receive spotty thunderstorms, while little or no rain will accompany a Western warming trend.

The NWS 6- to 10-day outlook for July 7 – 11 calls for the likelihood of hotter-than-normal weather nationwide, except for near-normal temperatures along and near the Pacific Coast, extending as far south as central California. Meanwhile, odds will be tilted toward near- or above-normal rainfall across most of the country, with drier-than-normal conditions expected to be limited to the Great Basin and environs.




Wednesday, July 1, 2026

July Washington D.C. Outlook

The next phase of President Donald Trump's agenda is taking shape. After months of executive orders and policy announcements, attention is shifting to implementation. Agencies are rolling out new programs, advancing regulations and opening consequential proceedings, while lawmakers confront a packed slate of policy debates. POLITICO's policy teams will be tracking the key developments, deadlines and decisions that will shape Washington in the weeks ahead.

— The FAA is accelerating AI adoption across aviation safety and air traffic operations.

— Companies face key July deadlines to influence Trump's evolving tariff and trade agenda.

— Disney's FCC battle is emerging as an early test of the Trump administration's media agenda.

Agriculture

— Farm bill showdown: Senate lawmakers have teed up their version of the farm bill. Senate Ag Chair John Boozman (R-Ark.) has said he plans to mark up the bill before the chamber recesses for its August break. Several controversial provisions sought by Republicans didn’t make it into Boozman’s bill. The proposal also omits a Democratic priority to delay a requirement that states begin sharing the cost of the Supplemental Nutrition Assistance Program benefits. That could make it much harder to move the historically bipartisan bill through Congress.

House Ag Chair G.T. Thompson (R-Pa.) is expected to unveil his long-expected farm-labor bill, legislation that would allow dairy farms to employ foreign agricultural workers year-round for the first time.

— USDA reorganization: Federal employees are learning their new duty stations and deciding whether to relocate from the Washington region to hubs around the country. USDA has released reorganization plans for the Foreign Agricultural Service, the Farm Production and Conservation mission area, the Forest Service and the newly renamed Food and Nutrition Administration. Documents obtained by POLITICO show the reorganization must be completed within a year, though department officials have said some employees may be required to move sooner.

— MAHA regulations: The Food and Drug Administration has yet to release its long-awaited definition of ultra-processed foods, a rule that could have sweeping implications for federal procurement and nutrition policy. Health Secretary Robert F. Kennedy Jr. has said the definition is imminent and that the FDA will move quickly afterward on front-of-package nutrition labeling.

Separately, a federal judge in June blocked USDA waivers allowing five states to restrict purchases of foods such as soda and candy through SNAP. Because the agency relied on the same legal authority for other state waivers, the ruling could have broader implications for one of the Make America Healthy Again movement's signature initiatives.

—Screwworm threat: Confirmed U.S. cases of the New World screwworm continue to climb, while USDA remains far short of the sterile fly production needed to contain the pest's spread. A new facility in Mexico opened this month and is expected to eventually produce 100 million sterile male flies, but analysts estimate roughly 500 million must be produced each week to control the outbreak. Former USDA employees say internal spending reviews delayed the facility's opening by months. The flesh-eating parasite can kill livestock, impose costly treatment expenses on ranchers and, ultimately, put additional upward pressure on beef prices. — Marcia Brown

Trade

— USTR July sprint: July will be a pivotal month for companies and governments looking to shape the Trump administration’s trade agenda.

Public comments are due today on the Office of the U.S. Trade Representative’s proposed 25 percent tariffs on Brazil over a range of trade disputes, and on Thursday for a similar probe into Vietnam’s intellectual property protections.

Companies also have until Sunday to request the continuation of certain China tariffs imposed during Trump's first term that former President Joe Biden later maintained and expanded.

Later this month, USTR will hold a public hearing in the Brazil investigation and another on proposed tariffs on 60 countries’ efforts to curb imports made with forced labor. The agency will also close public comments on the proposed U.S.-China “board of trade,” which would manage bilateral trade relations.

— USMCA review begins: July 1 has been circled on trade watchers' calendars for another reason: it marks the formal start of the six-year review of the U.S.-Mexico-Canada Agreement, the North American trade pact Trump signed during his first term.

The three governments meet virtually today to launch the review, but the United States and Canada remain far apart on a path toward extending the agreement, according to U.S. Ambassador to Canada Pete Hoekstra.

In an interview broadcast Sunday on Canada’s CTV News, Hoekstra said the two countries are not “close to announcing any type of a framework or an interim agreement.” He echoed recent comments from Canadian Prime Minister Mark Carney that any breakthrough in the negotiations will have to come from the highest levels of government.

“The next discussion, again, has to be a discussion between potentially the president and the prime minister,” Hoekstra said.

Talks with Mexico, which U.S. officials have described as further along, are continuing, with negotiators expected to meet next month for a third round of talks.

If the three countries don’t reach an agreement this year to extend the deal for another 16 years, they will meet annually for the next 10 years in an effort to renew the agreement before its expires in 2036. — Oliver Ward

Financial Services

— SEC reporting: Public comments about the Securities and Exchange Commission’s proposal to shift to twice-yearly reporting for U.S. public companies are due in early July, setting the stage for the agency to begin drafting a final rule. Watch for sharp reactions from Wall Street, where some major firms have been signaling concern about moving away from quarterly reporting for months. A trio of industry groups has urged the agency to extend the comment window, citing the July 4 holiday.

— Crypto bill: Senators are aiming for a floor vote on a sweeping sweeping legislation that would divide oversight of digital assets between federal regulators. The bill will need bipartisan support to pass, and several issues remain unresolved. Lawmakers need to negotiate a government ethics provision governing how federal officials can engage with digital assets, addressing Democrats’ concerns about the Trump family’s crypto businesses, Law enforcement groups also continue to object to a provision known as the Blockchain Regulatory Certainty Act.

— More commissioners: As Congress races to reach a deal on the digital assets bill, another outstanding issue is whether lawmakers can agree to fill vacancies at the agencies that regulate Wall Street and would oversee the digital asset markets. Three of SEC’s five commissioner posts are filled while the Commodity Futures Trading Commission has just one commissioner, Chair Michael Selig. Lawmakers from both parties involved in the crypto negotiations have called for additional nominees.

Separately, Federal Reserve Chair Kevin Warsh is scheduled to testify before Congress for the first time, during the week of July 13.

— FinCEN scrutinized: Treasury's anti-money laundering bureau heads to Capitol Hill on July 21 as House lawmakers review the Trump administration's plans for the Financial Crimes Enforcement Network, which has become central to its crackdown on cross-border payments, fraud and illicit finance. Lawmakers are expected to press officials on implementation of the Corporate Transparency Act's beneficial ownership reporting requirements, as well as efforts to expand FinCEN's role alongside banking regulators in anti-money laundering supervision.

— Non-profits: Public comments close July 13 on an Office of Management and Budget proposal that would give political appointees authority to approve or cancel federal grants for nonprofits, states and local governments. Industry and consumer advocates argue the change could slow affordable homebuilding nationwide — contrary to lawmakers’ recently enacted bipartisan legislation intended to boost housing supply by reducing regulatory red tape. — Mark McQuillan

Tax

— Chief counsel, take two: The Senate Finance Committee is gearing up to question the Trump administration’s nominee for IRS chief counsel following the nomination of attorney Jim Gadwood to the long-vacant post. If confirmed, Gadwood, currently the vice-chair of the tax practice at boutique law firm Miller & Chevalier, would oversee nearly 2,000 attorneys responsible for writing regulations implementing federal tax law — like last year’s GOP megabill — and represent the government in the U.S. Tax Court.

Democrats on the Finance Committee are already eager to press Gadwood on acting Attorney General Todd Blanche recent decision to exempt President Trump and his business interests from years of IRS audits as part of the settlement ending Trump’s lawsuit against the agency over the leak of his tax returns.

Filling the chief counsel role — one of only two Senate-confirmed posts at the IRS, along with the still-vacant commissioner’s job — has been a struggle in Trump’s second term. The administration’s first nominee, Donald Korb, was scuttled last November after far-right activist Laura Loomer, a Trump ally, criticized his past donations to Democrats and favorable words about them.

— Doing it live: The administration is looking to make a splashy July 4 launch of Trump Accounts, the new tax-advantaged investment funds for children born between 2025 and 2028, when they begin accepting contributions and government seed money. But questions linger about how smoothly the government is implementing the program, created as part of last year’s tax overhaul. The Center for Taxpayer Rights, a nonprofit led by former IRS national taxpayer advocate Nina Olson, called the Trump Accounts mobile app — developed by the Bank of New York and Robinhood — “so amateurish” in its design it could discourage participation. And the libertarian-leaning Cato Institute worries Trump Accounts may not be as accessible to lower-income families. — Benjamin Freed

Education

— Student aid overhaul launch: July 1 is expected to mark the start of one of the biggest overhauls of higher education policy in nearly two decades. The Trump administration has moved aggressively to implement policies from by the GOP’s One Big Beautiful Bill Act, the domestic policy package signed into law last summer, along with additional administration priorities. Here’s what’s taking effect this month:

  • Student loan caps: New federal loans caps for graduate students will be set at $20,500 per year, with a $100,000 aggregate limit. Students in professional programs will be able to borrow up to $50,000 per year, with a $200,000 aggregate limit.
  • Workforce Pell Grants: The new program allows Pell Grants, traditionally reserved f or low-income students pursuing degrees, to be used for job training programs as short as eight weeks. Eligible programs must be approved by a state’s governor and the Education secretary and must meet annual performance metrics.
  • Loan repayment plan changes: The Education Department will phase out the Biden-era Saving on a Valuable Education program and launch a new repayment program known as the Repayment Assistance Plan. More than 7 million borrowers will have to enroll in another plan to repay their student debt.
  • Public Service Loan Forgiveness: The department has revised which employers qualify for the Public Service Loan Forgiveness program, seeking to exclude borrowers whose employers engage in activities the Trump administration considers illegal.
  • Rule still pending: The Education Department has yet to finalize its rule creating a new accountability metric based on the earnings of graduates from undergraduate programs. If graduates do not earn as much as a typical high school graduate, the program will no longer be eligible for federal student loans.

— K-12 FUNDING DISTRIBUTION: The department is expected to make billions in education dollars, known as formula funds, available to states on July 1. In this year's government spending law, Congress has explicitly required the department to distribute the funding for key programs — including support for high-poverty schools, special education and career and technical education — by that date. It’s a move that came after the Trump administration withheld billions of education funding last year that is typically made available on July 1. — Bianca Quilantan and Mackenzie Wilkes

Defense

— Senate defense action: The Senate is expected to begin debate on its version of the annual defense policy bill when lawmakers return from the July Fourth recess.

The chamber’s deliberations will provide a key test of support for President Trump's proposed $1.15 trillion defense budget. The legislation will need at least some Democratic support to clear the Senate’s 60-vote threshold for advancing.

But early signs point to a difficult path. A majority of Democrats on the Senate Armed Services Committee voted against the bill during the panel’s closed-door mark-up last month. Democrats have expressed reluctance to back a record-breaking Pentagon budget with few constraints on the Trump administration actions, including the Iran war, military operations targeting suspected drug-smuggling vessels in the Caribbean and National Guard deployments to U.S. cities.

Republican and Democratic leaders will also need to negotiate agreements on amendments, setting up potentially difficult national security votes less than four months before the midterm elections.

Meanwhile, Senate appropriators haven’t made progress on advancing companion defense funding legislation. Chair Susan Collins(R-Maine) and ranking member Patty Murray (D-Wash.) remain at odds over how to distribute funding across the 12 annual government spending bills. Murray has vowed that Democrats will not support major increases to the Pentagon budget without corresponding consideration for domestic programs. — Connor O’Brien

Health Care

— Info blocking crackdown: The Trump administration's health tech agency is targeting hospitals, doctors and others that stand in the way of health data sharing.

Thomas Keane, the National Coordinator for Health IT, is working to ensure patient health records and other medical data flow seamlessly among providers, insurers and patients. That means penalizing entities that fail to comply with federal rules requiring easy access to and exchange of patients’ electronic health information.

The office has begun issuing notices to violators, along with corrective action plans. Failure to comply could bring penalties as high as $1 million per violation. The HHS Office of Inspector General is staffing up with lawyers and investigators as it reviews through more than 2,000 complaints related to information blocking.

Congress directed the Department of Health and Human Services, which houses the the health IT office, to prevent health care organizations from hoarding patient data under the 2016 21st Century Cures Act. The health IT office finalized rules implementing the law in 2020 and penalties in 2024, but enforcement has only recently begun.

— Hospitals vs. drugmakers: Senate Health Chair Bill Cassidy wants to overhaul the controversial 340B program, picking a fight with hospitals over a benefit that gives facilities serving large numbers of low-income patients steep drug discounts.

The Louisiana Republican has released a discussion draft outlining several changes, including increased transparency requirements aimed at ensuring the discounts help low-income Americans. Cassidy argues the program has grown too large and has limited oversight.

The draft is the latest salvo in a yearslong lobbying fight between the drug industry and hospitals over 340B, which Congress created in 1992 to require drug companies to provide steep discounts to safety-net hospitals participating in Medicare or Medicaid. Drug companies argue the program has become too unwieldy, while hospitals counter that it is essential to helping safety-net facilities operating on thin margins to access costly medicines.

Although 340B reforms have drawn bipartisan support in the past, hospitals had enough allies on Capitol Hill to block them. — Health Care Pro Team

Transportation

— The FAA’s big AI push: The Federal Aviation Administration is deploying artificial intelligence on two fronts — one focused on preventing tomorrow's safety risks and another on managing today's air traffic.

The agency's partnership with technology firm Palantir uses decades of aviation data to identify emerging safety trends before they lead to airport incursions or other potential safety risks across the national airspace system. Palantir’s “Foundry” tool helps FAA safety analysts understand where risk is increasing across the aviation system.

Separately, the FAA awarded a contract to Air Space Intelligence for a program dubbed SMART, which is designed to optimize the day-to-day flow of aircraft through national airspace. The system analyzes weather, flight schedules, aircraft positions and airspace constraints to forecast congestion and conflicts hours — or even days — in advance. The hope is that it will give controllers more opportunities to reroute flights before bottlenecks develop.

FAA officials have emphasized that neither system is intended to replace human decision-making. Instead, the tools are designed to provide air traffic managers and safety officials with better information earlier, before problems emerge.

—Safety bill stall: House and Senate lawmakers are running out of time to reconcile competing aviation safety bills before the midterm elections.

The measures take different approaches to requiring certain aircraft to carry advanced tracking technology that allows pilots to receive real-time information about nearby aircraft — a proposal driven by last year's fatal midair collision over Washington. At the center of the disagreement between the House's ALERT Act and the Senate's ROTOR Act is a debate over ADS-B In, the cockpit technology that lets pilots view nearby aircraft in real time and that safety advocates say could help prevent future midair collisions.

Lawmakers could still use the annual National Defense Authorization Act as a vehicle for the aviation safety provisions, though negotiations have made little progress. FAA officials have also said the agency is exploring taking regulatory action independent of Congress, including how to address NTSB recommendations stemming from the crash.

— Surface transportation deadline: The calendar is becoming a factor for the surface transportation authorization. Lawmakers have begun discussing what a short-term extension of current authorities might look like if Congress misses the Sept. 30 deadline for a new bill.

Sen. Shelley Moore Capito(R-W.Va.), chair of the Senate Environment and Public Works Committee, has said she remains focused on finishing the bill on time but acknowledged that, if an extension becomes necessary, she envisions one lasting only until the end of the year — not a full year. Such a stopgap would give negotiators additional time after the November elections to complete the legislation, though Capito has made clear that remains a fallback option: "I don't want to do that. I want to finish in September." — Oriana Pawlyk

Technology

— Disney fight beats on: Multiple deadlines in Disney’s ongoing tussle with the Federal Communications Commission fall in July as the company battles over its broadcast licenses and the daytime TV show “The View.”

A second round of comments is due July 6 on whether to grant the Disney’s request to treat “The View” as bona fide news, exempting it from the agency’s longtime equal time requirements for rival political candidates. ABC has defended that designation, arguing that applying equal time rules could chill speech, while GOP campaign operatives say the rules should apply.

Meanwhile, ABC and its allies have until July 29 to respond to petitions seeking to block renewal of its eight broadcast TV station licenses submitted at the end of June. FCC Chair Brendan Carr bought up these licenses for early review — years ahead of schedule — citing a diversity probe into the company. GOP groups raised a range of complaints against Disney, including allegations of liberal bias in certain shows.

— Kids Online Safety back on the agenda: Lawmakers in both chambers are poised to continue negotiations over children's online safety legislation in July following a flurry of activity in June.

Sen. Marsha Blackburn (R-Tenn.) is negotiating with the White House on a package that would pair limited preemption of state AI laws with several children's online safety bills, including the App Store Accountability Act, the NO FAKES Act and the Kids Online Safety Act (KOSA).

Meanwhile, House Energy and Commerce Chair Brett Guthrie (R-Ky.) and ranking member Frank Pallone(D-N.J.) have advanced the bipartisan KIDS Act, which includes KOSA and other online safety measures. The House package, however, omits the Senate version's of the "duty of care" provision, setting up a key point of contention if lawmakers attempt to reconcile the two approaches.

— AI rules of the road: July will also test whether the Trump administration can provide greater certainty around its emerging approach to regulating frontier AI models.

After blocking foreign nationals from accessing Anthropic's Mythos 5 and Fable 5 models over cybersecurity concerns, the administration on Friday partially lifted restrictions on Mythos 5 for a limited group of approved companies and agencies, while Fable 5 remains restricted. The White House also asked OpenAI to limit the rollout of its latest GPT-5.6 model while similar security concerns are evaluated.

The administration says it wants to preserve U.S. leadership in AI while addressing national security risks, but companies and trade groups are increasingly calling for a more formal review process. Industry will be watching in July for signs the White House intends to move beyond case-by-case interventions toward a more predictable framework for evaluating advanced AI models. — John Hendel and Owen Dahlkamp

Cybersecurity

— Cyber’s July agenda: Congress returns from the July Fourth recess to a packed cyber policy agenda, including efforts to establish stronger guardrails on artificial intelligence models, revive a key surveillance law and advance funding bills for the coming fiscal year.

Meanwhile, White House officials, including National Cyber Director Sean Cairncross, are working to secure the rollout of advanced, cyber-capable AI models while allowing trusted companies to deploy them to strengthen their cybersecurity defenses.

Trump signed an executive order last month directing AI developers to voluntarily submit their models to the federal government for review 30 days before public release. Another initiative required by the order, an AI security clearinghouse that would coordinate federal agencies and private sector companies to fix critical security vulnerabilities identified by advanced models is also expected to begin operating this month.

On Capitol Hill, lawmakers are scrambling to find a path to renew Section 702 of the Foreign Intelligence Surveillance Act, which officially lapsed last month. Congress appeared poised to reauthorize the law, which allows the intelligence agencies to collect communications data involving non-Americans without a warrant. But Trump has since said he will sign a Section 702 extension until Congress passes a voter ID bill members of his own party say is a non-starter — raising the prospect the spy program could remain dormant indefinitely.

— Appropriations watch: The Senate Appropriations Committee is expected to release its Homeland Security spending bill, which funds the Cybersecurity and Infrastructure Security Agency. The House Appropriations Committee has already approved legislation providing roughly $2.4 billion for CISA in fiscal 2027, along with $50 million for the State and Local Cybersecurity Grant Program.

And two key cyber leadership roles remain vacant— but that could change this month. The Senate could vote on the Adam Cassady's nomination to serve as the State Department’s next cyber ambassador at any time, while Trump is expected to soon announce a nominee for director of CISA, which has remained without a Senate-confirmed leader since January 2025. — Maggie Miller, Dana Nickel and John Sakellariadis




Tuesday, June 30, 2026

May Ag Prices Received Index Up 4.1 Percent, Prices Paid Up 0.2 Percent

May Prices Received Index Up 4.1 Percent  

The May Prices Received Index 2011 Base (Agricultural Production), at 140.9, increased 4.1 percent from April and 0.2 percent from May 2025. At 116.7, the Crop Production Index was up 7.2 percent from last month and 12 percent from the previous year. The Livestock Production Index, at 158.6, increased 2.6 percent from April, but decreased 7.1 percent from May last year. Producers received higher prices during May for cattle, lettuce, strawberries and broilers but lower prices for tomatoes, broccoli, oranges, and sweet corn. In addition to prices, the volume change of commodities marketed also influences the indexes. In May, there was increased monthly movement for cattle, lettuce, hay and broilers and decreased marketing of soybeans, calves, hogs, and apples.  

May Prices Paid Index Up 0.2 Percent  

The May Prices Paid Index for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW), at 163.7, is up 0.2 percent from April 2026 and 9.6 percent from May 2025. Higher prices in May for nitrogen, complete feeds,  hay & forages, and other services more than offset lower prices for feeder cattle, feeder pigs, self-propelled machinery, and tractors. 






Idaho And Western United States SNOTEL Water Year (Oct 1) to Date Precipitation % of Normal (6/30)








This Week's Drought Summary (7/2)

Active weather delivered heavy showers and locally severe thunderstorms east of the Rockies, with a few exceptions. Some of the heaviest rai...