A Capitol View: June 2026

Welcome to A Capitol View!

We’re in the throes of congressional budget season and major appropriations and policy bills are moving forward. But partisan differences cloud prospects for timely passage before the end of the fiscal year, and Trump Administration plans are in flux for additional military spending outside the normal appropriations process.

The House and Senate have begun shaping their respective Pentagon appropriations bills, which are calling for a record $1.1 trillion.

The approach gives priority to the “pressing need to acquire and produce the munitions, weapons, and technology our troops require to meet the moment in both modern and future warfare,” said Rep. Ken Calvert of California, who chairs the House Defense Appropriations Subcommittee.

He cited in particular additional resources for the Defense Innovation Unit and theCivil Reserve Manufacturing Network.

Find more House spending details here.

Find more Senate spending details here.

Reconcilable differences? Much uncertainty hangs over whether – and in what form – Congress might pass another reconciliation bill, which the Trump administration wants to include $350 billion more for defense – including to cover the costs of the Iran War. That would also get it to its $1.5 trillion national defense spending goal.

And: Top Republican appropriators say third reconciliation bill is ‘not an option’

Plus: Congress has lost its grip on funding the government

More legislative action: We are also tracking for clients the energy and waterand transportation spending bills that are in various stages of development, but generally further along in the process on the House side.

Water works: SMI was pleased to see the bipartisan Water Power Research and Development Reauthorization Act pass the House Science, Space and Technology Committee in late May.

The bipartisan legislation, co-sponsored by Reps. Suzanne Bonamici (D-Oregon) and Nick Begich (R-Alaska), aims to modernize the Department of Energy’s water power research, development, and demonstration programs, including for marine energy, pumped storage, and hydropower technologies. Those programs were last reauthorized in 2020.

‘Untapped energy’: “The ocean contains enormous, untapped energy potential,” said Bonamici. “Marine energy uses power from moving water, including waves, tides and currents, to provide reliable baseload electricity.”

Sens. Lisa Murkowski (R-Alaska) and Ron Wyden (D-Oregon) have introduced companion legislation in the Senate.

SMI’s water power team, including VPs Paul Gay, Damian Kunko, and Jeff Leahey, have been actively engaged in building support for the legislation for several years and are now focused on advocating for full passage in the House and Senate.

‘Energy dominance agenda’: “Federal funding played a key role in commercialization of nuclear reactors, advanced natural gas turbines, and even hydraulic fracturing,” said Gay. “The same is true today of geothermal and fusion. Advanced hydropower, pumped storage, and marine energy technologies require and deserve the same federal commitment as part of an energy dominance agenda.”

Road trip: Also high on our radar is the Surface Transportation Reauthorization Bill, or the BUILD America 250 Act, a $580 billion bipartisan package that should see more action in both chambers in the coming weeks.

The five-year legislation, which expires September 30, funds highways, bridges, and other transit programs, and includes a series of regulatory measures such as proposed electric vehicle fees and new frameworks for autonomous vehicles. It would replace the expiring 2021 Infrastructure Investment and Jobs Act.

Go deeper: Congress’s Transportation Reauthorization Bill Would Drastically Underfund Transit and Rail Projects

SMI SPOTLIGHT

SMI is pleased to welcome retired Navy Rear Admiral Andy “Bucket” Loiselle, a former director of air warfare and the principal assistant to the Chief of Naval Operations, as a senior advisor.

Loiselle, who crafted the annual budget and future requirements for naval aviation, also commanded an F/A-18C squadron, an amphibious assault ship, a nuclear-powered aircraft carrier, and two aircraft carrier strike groups over his 35-year military career.

He is currently the owner of Andy Loiselle Solutions, LLC, bringing over 35 years of leadership experience from his Navy career.

More SMI news: Dr. Aisha Haynes Joins New Jersey Innovation Institute Board of Directors

SMI EVENTS

MATERIAL WORLD: SMI COOKen Wetzel and VP Dr. Aisha Haynes led two high-level events on advanced materials: the annual Advanced Materials Summit, in partnership with the Department of War, and a forum with the Department of Energy and National Institute of Standards and Technology on the role of AI in materials development.

SMI’s growing advanced materials practice is focused on bringing together government, industry, academia, and technology leaders to solve materials challenges and strengthen long-term U.S. competitiveness,” said Wetzel, who also serves as executive director of the United States Advanced Ceramics Association.

“A major theme across both events was that workforce development underpins everything,” he continued. “Building the next generation of talent for advanced manufacturing, AI-enabled engineering, and next-generation materials production will be critical to long-term U.S. competitiveness.”

“SMI is committed to helping convene the partnerships and conversations needed to support that effort,” Wetzel added.

NEED FOR SPEED: SMI hosted a roundtable featuring senior leaders from the Department of Energy and its Office of Critical Minerals and Energy Innovation, and Argonne National Laboratory, to launch the National Science-at-Scale Collaborative, which is designed to help companies more quickly move critical materials and chemical manufacturing technologies from research to commercial production.

“To compete globally, the U.S. must bring new technologies into production more quickly,” said Assistant Secretary of Energy Audrey Robertson. “This collaborative will help connect DOE, the national laboratories, and private industry to speed up that process.”

Argonne Director Paul Kearns also said the new initiative “will help connect discovery, engineering and deployment in ways that strengthen U.S. competitiveness and advance our economic security.”

The roundtable also included industry leaders from Aclara, Albemarle Corporation, Atlantic Alumina, BASF, The Chemours Company, Dow, Entegris, ExxonMobil, Orbia and Standard Lithium.

Critical link’: “Chemical processing and critical materials production are crucial markets for the U.S,” said SMI VP David Howell. “Processed materials form the critical link that is required to move extracted materials to the final components and products needed in major sectors of our economy, including defense systems, energy systems, agricultural, healthcare, construction materials and more. The U.S. reliance on foreign-sourced processed chemicals, particularly from China, presents both a direct vulnerability for our energy and defense supply chain security, as well as a missed economic opportunity.”

“We were able to bring together senior leaders from government and industry to explore opportunities for collaboration on processing innovations that can strengthen cost-effective and resilient U.S. critical mineral supply chains and the domestic chemical processing industry,” Howell added. “The executive roundtable discussion focused on accelerating the deployment of breakthrough innovations in chemicals and critical minerals manufacturing.”

Read the DOE announcement.

Plus: Millions in DOE investments aim to boost domestic critical minerals

CONVENING AUTHORITY: SMI also hosted the latest in the New England Council’sexclusive Capitol Conversations series with Sen. Jeanne Shaheen of New Hampshire.

Shaheen, who was introduced by SMI VPBryan Maxwell, one of her former staffers, is a member of the Armed Services, Foreign Relations, Appropriations, and Small Business committees.

DEFENSE

CLIMBING THE RANKS: SMI is playing a growing role in helping re-energize the defense industrial base, including advising some of the most innovative upstarts.

Several clients were included in the latest Natsec100, the annual roundup from the Silicon Valley Defense Group and J.P. Morgan to highlight venture capital and private equity-backed defense firms “that are innovating, building, and delivering warfighting capabilities.”

They include Govini Defense Tech, the software company rewiring supply chain management; Relativity Space, the reusable space launch leader; and industrial AI pioneer Code Metal.

Giant leap: Govini jumped 79 spots to number 18 on the list. Said SMI VP Maria Bowie, who leads our Govini engagement: “SMI is proud to have helped the company grow from a promising defense data innovator into one of the top-ranked dual-use and defense technology companies leading efforts at the Department of War and the military services to tackle complex supply chain, industrial base, and acquisition challenges with modern software.

Her team, including Carla Zeppieri and David Bortnick, has helped Govini secure tens of millions of dollars in investments to assist the Pentagon in modernizing and strengthening the submarine and critical minerals supply chains.

More Relativity news: Pushing the Envelope: Licensing Process for Space Launches Catching Up to Demand but More Resources, Flexibility Needed

MOTORING: One of the Pentagon’s highest industrial priorities is also strengthening the supply chain for solid rocket motors, and SMI was pleased to see the Pentagon select Pacific Scientific Energetic Materials, a leading producer of safety systems for aerospace and defense, to expand production of critical safety components for solid rocket motors.

A new $27.3 million award under the Defense Production Act Title III will help shore up this key element of the supply chain.

‘Innovative and reliable’: “This investment supports our ability to scale production, meet growing demand, and continue advancing innovative and reliable energetic systems,” said Corey Christmann, the company’s president. “More importantly, it reflects confidence in our people and the discipline they bring to their work.”

The Arizona company “plans to establish a production facility designed to scale manufacturing for high-volume missile programs while reducing delivery timelines and manufacturing errors, according to the announcement,” the publication reported.

Read the announcement.

More defense news: DOW Releases List of Chinese Military Companies in Accordance With Section 1260H of the National Defense Authorization Act for Fiscal Year 2021

Plus: Pentagon backs tax credits, foreign IP licensing for battery-making equipment

INNOVATION

A NEW MODEL: University of Massachusetts Lowell Chancellor Dr. Julie Chen headlined the Boston Globe’s Tech Innovation Summit, where she highlighted the research university’s leadership in reimagining the linkage between higher education, workforce development, and regional economic growth.

The swiftly expanding Lowell Innovation Network Corridor (LINC) is leading the way by bringing together and charting new pathways connecting companies, researchers, students, entrepreneurs, investors, and government partners at the federal, state, and local level.

‘Direct access’: “Our strength as a research university is matched by our commitment to student success,” said Chen. “We’re preparing graduates with the skills and experience to meet industry needs, while providing our partners with direct access to innovation and talent.”

Chen was also recognized as one of Massachusetts’ top Tech Power Players.