States Advance 2026 Legislation on E-Verify, Tax Deductions for Tips and Overtime

• The U.S. House passed the Deporting Fraudsters Act on March 20, 2026, by a 231-186 vote, designating document fraud as a deportable offense for noncitizens. • The bill adds a new removal trigger for convicted noncitizens, enhancing immigration enforcement on fraud cases. • Passage strengthens federal tools amid ongoing immigration debates, impacting deportation priorities.

• A Congressional Budget Office report released March 19, 2026, estimates laws from the 119th Congress's first session (Jan 2025-Jan 2026) will boost the 2025-2034 deficit by $3.5 trillion. • The net effect stems from $1.1 trillion reduced outlays and $4.6 trillion decreased revenues, excluding interest costs on added borrowing. • Findings highlight fiscal impacts of authorizing and appropriations legislation, informing ongoing budget debates.

• The Trump White House issued a March 20, 2026, AI policy framework calling on Congress to preempt state laws regulating AI model development and avoid new federal agencies. • It recommends codifying Trump's ratepayer protection pledge by Amazon, Google, and OpenAI for data center electricity, plus age-gating for child-accessible models and skills training legislation. • The blueprint seeks to balance innovation with child protections but faces bipartisan hurdles, as Senate Majority Leader John Thune eyes bundling with KOSA by April end.

• The U.S. Senate unanimously passed Sen. John Cornyn's (R-TX) End Special Treatment for Congress at Airports Act on March 20, 2026, requiring members of Congress to undergo standard TSA screening like other passengers. • The bill prohibits federal funds for expedited access at checkpoints, addressing perks that allow lawmakers to bypass lines amid a DHS funding shutdown affecting 120,000 employees without paychecks. • Cornyn stated, 'Members of Congress are getting an unfair perk... trust in Congress is at an all-time low,' emphasizing restoration of public trust as key impact.

• Online prediction markets like Kalshi now slightly favor Democrats to gain control of the Senate in November 2026 midterms amid favorable political trends. • Key races include Texas with Democrat James Talarico challenging scandal-plagued Ken Paxton or John Cornyn, and openings in Montana after Sen. Steve Daines' retirement. • Senate control will impact judicial confirmations, potentially allowing Trump to fill a fourth Supreme Court vacancy if one arises in 2027-2028.

• Governor Gavin Newsom announced California is suing the Trump administration for unlawfully repealing the EPA's Endangerment Finding on climate change, prioritizing polluter profits over public health. • Attorney General Rob Bonta stated the rescission breaks the law, with California joining prior coalitions of 24 states representing 55% of U.S. population to oppose the move. • California Air Resources Board Chair Lorne Piexot criticized the repeal as anti-science abandonment of protections, vowing vigorous court defense to safeguard communities and resources.

• President Donald Trump lashed out at the Supreme Court and District Judge Boasberg in a social media post full of falsehoods, claiming courts treat him unfairly. • Chief Justice John Roberts defended the Supreme Court, stating 'It’s got to stop' regarding personal invective against judges. • The attacks coincide with increased violent threats against federal judges ruling against the administration, as reported by multiple outlets.

• Sen. Martin Heinrich (D-N.M.) criticized the Republican SAVE Act on March 18, 2026, as 'one of the most extreme voter suppression bills in recent history.' • The bill mandates in-person proof of citizenship like passports, which 140 million Americans lack, banning online, mail, and automatic registration. • It would disenfranchise rural voters, veterans, and women changing names, despite existing laws prohibiting noncitizen voting under penalty of perjury.

• Lawmakers reviewed 27 bills on March 18, 2026, in the House Veterans’ Affairs Committee to update VA health care, accountability, education, and workforce programs, many unchanged for 30 years. • Proposals include 12 Republican-led and 15 Democrat-led bills expanding dental coverage, VA mental health for incarcerated veterans with PTSD, and aligning drug formularies with industry standards. • Chairman Bost stressed reauthorization as a tool to fix underperforming programs; bills also update leasing, contracts, and protect 30% veteran VA staff from layoffs via Rep. Tim Kennedy's act.

• Congress introduced a bipartisan bill on March 19, 2026, to establish guidelines scrutinizing AI use in U.S. federal courts amid growing Capitol Hill concerns. • Clear federal AI standards for judiciary remain absent; the measure addresses broader technology risks in government operations. • Related updates include Senate panel vote on DHS Secretary nominee Markwayne Mullin and Sen. Bernie Sanders forcing votes on $658 million Israel arms sales.

• The House Committee on Oversight and Government Reform advanced nine bills on March 19, 2026, to safeguard American taxpayers and ensure efficient use of federal funds. • Key measures include H.R. 7934 requiring agencies to publish settlement agreements online, doubling whistleblower cash awards to $20,000, and mandating Treasury reports on fiscal risks from crises amid $38 trillion debt. • Legislation reforms FFATA for accurate USAspending.gov data and recognizes special districts for federal aid, addressing unreported funds including national security spending.