Congress is Out for the August Recess — and Will Have a Full Agenda When it Comes Back

A state of play on AAM’s legislative priorities as the August recess begins.

The U.S. Congress has left Washington for the August recess, and lawmakers have made important progress on several manufacturing priorities. The biggest tests, however, lie ahead. When Congress returns this fall, it will face a crowded agenda that will help determine whether the United States continues rebuilding its industrial base or falls further behind global competitors. The Alliance for American Manufacturing (AAM) is tracking a number of legislative proposals that could be part of that program.

Let’s start with a bright spot: The Connected Vehicle Security Act of 2026 (S. 4429), introduced by Sens. Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Mich.) along with companion legislation in the House (H.R. 8730) from Reps. John Moolenaar (R-Mich.) and Debbie Dingell (D-Mich.). The Senate bill cleared the Commerce Committee in July, signaling growing bipartisan concern about the national security risks posed by imported connected vehicles. Today’s automobiles are rolling computers that collect reams of data and rely on sophisticated software, sensors and communications technologies. The legislation would prohibit from the United States connected vehicles and related hardware and software linked to foreign adversaries.

Congress has also begun addressing another major strategic vulnerability: shipbuilding. The House included key provisions of the SHIPS for America Act in its version of the National Defense Authorization Act (NDAA), creating momentum for long-overdue efforts to rebuild America’s maritime industrial base. China’s shipbuilding industry did not rise to global dominance through market competition alone; it was built through decades of aggressive state support, subsidies, preferential financing, state-directed investment and industrial policies designed to capture global market share and displace foreign competitors. As a result, China now accounts for a dominant share of global shipbuilding while U.S. capacity has declined to a precarious position. Revitalizing American shipyards, expanding the U.S.-flag fleet, and strengthening domestic supply chains are national security priorities. Congress should preserve the SHIPS provisions and complete the NDAA this fall to help restore America’s ability to build the ships, supply chains and industrial capacity needed to compete in the 21st century.

Another major challenge awaits lawmakers at the end of September, when current surface transportation authorities expire. The House Transportation and Infrastructure Committee has already approved its BUILD America 250 Act, but the Senate has yet to advance a comparable bill and a short-term extension appears increasingly likely. Ultimately, Congress should complete a long-term highway bill that provides certainty for infrastructure investment while preserving strong Buy America protections. These drive demand for American-made iron and steel, construction materials, and manufactured products while ensuring taxpayer dollars support domestic production rather than its overseas competition.

Closely tied to the highway bill is reauthorization of the Water Resources Development Act (WRDA), Congress’s biennial water infrastructure legislation that authorizes improvements to ports, harbors, inland waterways, flood-control systems and other projects that help move raw materials and manufactured goods across the country. Both the House and Senate have advanced WRDA 2026 through committee, positioning Congress to continue its long-standing practice of enacting a WRDA bill every two years. Lawmakers will still need to pass their respective bills and reconcile differences before sending a final package to the president.

Congress must also reauthorize the Export-Import Bank (EXIM). EXIM helps American manufacturers compete against heavily subsidized foreign rivals by financing exports of U.S.-made goods and supporting American participation in major projects around the world. Lawmakers should use reauthorization as an opportunity to strengthen domestic content requirements, ensuring that taxpayer-backed financing continues supporting production and jobs in the United States. At a time when foreign governments routinely provide substantial export financing and industrial support to their manufacturers, a strong EXIM that prioritizes Made in USA helps ensure American companies and workers are not forced to compete on an uneven playing field.

Perhaps most importantly, Congress should reject proposals that would weaken trade enforcement. U.S. manufacturers continue to confront unfair trade practices ranging from state-backed overcapacity and industrial subsidies to duty evasion and transshipment. AAM recently opposed the Congressional Trade Authority Act because it would create new hurdles for the use of enforcement tools such as Section 232 and 301. At a time when global competitors are becoming more aggressive, America should not be tying its own hands behind its back. Congress should instead focus on strengthening enforcement. Lawmakers should advance the Leveling the Playing Field Act 2.0, the Fighting Trade Cheats Act and the PAIL Act, each of which would provide additional tools to combat unfair trade practices, duty evasion, circumvention and trade fraud.

The legislative calendar may be crowded, but Congress has an opportunity this fall to strengthen American manufacturing for years to come. AAM hopes it’s ready to do so.