This week’s federal policy roundup covers immigration enforcement, financial access, press freedom, housing, and government accountability. From ICE’s one-day suspension of vehicle stops following two fatal shootings to Justice Department subpoenas targeting journalists, this week’s developments raise fundamental questions about the limits of executive power and the protection of civil liberties. Stay informed and learn more on our website.
Bipartisan Housing Bill Becomes Law
The bipartisan 21st Century ROAD to Housing Act became law Friday after the 10-day period for President Trump to sign or veto the bill expired without action. The legislation passed with overwhelming bipartisan support, clearing the Senate 85-5 and the House 358-32. The law seeks to improve housing affordability by reducing federal regulations, streamlining environmental reviews, accelerating construction, and restricting large institutional investors from purchasing single-family homes. While these restrictions could reduce competition for individual homebuyers, the law does not address other major affordability pressures, including construction labor shortages and rising insurance costs.
Federal Banking Regulators Issue Immigration-Related Lending Guidance
Three federal banking regulators issued joint guidance Monday directing banks and credit unions to consider borrowers’ work authorization status when assessing credit risk. The guidance states that borrowers without work authorization may present greater risk because immigration enforcement or deportation could disrupt their employment and ability to repay loans. It does not impose new lending requirements or require institutions to verify every customer’s immigration status, but it does advance a May executive order increasing scrutiny of unauthorized immigrants’ use of the financial system. Although the guidance does not prohibit lending based on immigration status, it could discourage institutions from approving mortgages, auto loans, and other credit for borrowers without work authorization. It could also create uncertainty for other immigrant borrowers and further limit immigrant communities’ access to mainstream financial services.
Judge Rejects Settlement in Trump Tax Returns Lawsuit
A federal judge voided a settlement agreement Monday resolving President Trump’s lawsuit against the IRS over the disclosure of his tax returns. The judge found the lawsuit was filed for an improper purpose and lacked a legitimate legal dispute because the president controlled the federal agencies he sued. This settlement would have shielded Trump, his family, and affiliated entities from future IRS audits and initially created a $1.776 billion compensation fund for individuals claiming government weaponization. The administration later withdrew the fund but sought to preserve the audit protections. The court barred Trump and the federal government from using the settlement in future proceedings and referred several attorneys involved in the case for potential disciplinary action, citing ethical concerns about the lawsuit and settlement negotiations. Although the administration had already abandoned the proposed compensation fund, the ruling eliminates the settlement’s remaining legal effect including its protections against future IRS audits and may inform future congressional oversight or related legal proceedings.
ICE Resumes Vehicle Stops After Brief Suspension Following Fatal Shootings
Homeland Security officials directed ICE to suspend most vehicle stops July 14 after officers fatally shot two motorists within one week: Johan Sebastián Durán Guerrero in Maine on July 13 and Lorenzo Salgado Araujo in Texas on July 7. The suspension allowed limited exceptions for stops involving criminal warrants. President Trump overturned the suspension the following day, directing ICE to continue using vehicle stops as an enforcement tool, and Homeland Security Secretary Markwayne Mullin said officers should have all enforcement options available. The suspension lasted approximately one day. Durán Guerrero was not the person ICE officers originally intended to arrest and reportedly had authorization to work in the United States. The ICE officers involved in the Maine shooting were not wearing body cameras, and witness accounts and government descriptions of the encounter remain disputed. The rapid reversal leaves unresolved questions about officer training, the use of force rules involving moving vehicles, and body– camera requirements. Federal and state authorities continue to investigate both shootings.
National Guard Deployment in Washington Extended Through January 2029
The Department of Defense confirmed the National Guard deployment in Washington, D.C. will continue through Inauguration Day on January 20, 2029, unless ended earlier by the president. The deployment began in August 2025 and has grown from 800 D.C. National Guard members to nearly 5,000 troops from more than 20 states and territories during a summer enforcement surge. Guard members have been deputized as special police, issued firearms, and authorized to detain individuals until law enforcement arrives, but they cannot make arrests.
The extension is estimated to cost between $2.5 billion and $3.4 billion through 2029, at more than $3 million per day. Studies have found little or no measurable effect on violent crime, which had already fallen to a 30-year low before the deployment began. The prolonged armed military presence in residential and public areas, imposed without approval from the District’s elected government, raises ongoing questions about civilian oversight, accountability, and the normalization of military involvement in local law enforcement.
Justice Department Subpoenas New York Times Reporters in Leak Investigation
The Department of Justice (DOJ) subpoenaed four New York Times journalists Friday to testify before a federal grand jury after the newspaper published a report raising security concerns about the Qatari-donated Air Force. The DOJ said the reporters are not targets and that the investigation focuses on government officials suspected of disclosing classified information but provided few other details. The subpoenas follow a 2025 policy change restoring prosecutors’ authority to use subpoenas and court orders to identify sources of unauthorized disclosures. Compelling reporters to testify could pressure them to reveal confidential sources, weakening protections that allow government employees to disclose information about national security and federal conduct. The subpoenas depart from longstanding practices treating mandatory demands for journalists’ information as a last resort and raises significant First Amendment and press freedom concerns.