Washington update Washington Newsletter, Q2 2026

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Invesco Global Public Policy Team

July 20, 2026

The Lincoln Memorial Reflecting Pool is the largest of the many reflecting pools in Washington, D.C., United States. It is a long and large rectangular pool located on the National Mall, directly east of the Lincoln Memorial, with the Washington Monument to the east of the reflecting pool.

Key takeaways

US Midterms:
The November midterms will not only serve as the first national referendum on President Trump’s second term and determine control of Congress, but it will also represent an important moment for both the Republican and Democratic parties, as it will set the stage for the 2028 open presidential election.
Reconciliation 3.0:
In June, Congress passed Reconciliation 2.0, which allocated more than $70 billion for border security and immigration.¹ Congress is now turning its attention to Reconciliation 3.0, which may be a heavy policy lift for Republicans, but could provide billions of dollars in funding for the Pentagon and usher in additional tax reform.
The Beijing Summit:
President Trump’s summit with Chinese President Xi Jinping produced mixed outcomes. The two leaders agreed to pursue constructive strategic stability but left the risk of renewed trade tensions unresolved. The two leaders are expected to meet again in the United States in September.

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Source: Congress.gov

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