May 24, 2026 to May 30, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions, political announcements and other government-related news coverings foreign affairs and international relations. Once a week, we break down the most important updates in this space in under five minutes.

Want to track other GR news in related areas? Don't miss this week's updates in Defence and Social Issues. Also consider subscribing to our Foreign Affairs - Ottawa edition covering critical GR news north of the border.

📋 In This Week's Newsletter

• 🏛️ This Week's Congressional Calendar
• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 📚 What We're Reading This Week

This Week's Congressional Calendar

• House Foreign Affairs Subcommittee Hearing: Confronting the Totalitarian Ortega-Murillo Regime: The House Foreign Affairs Subcommittee on Western Hemisphere is scheduled to hold a hearing on June 5, 2026, at 3:00 PM (Rayburn 2172) focused on Nicaragua's Ortega-Murillo regime. Ms. Ana Quintana-Lovett, Deputy Assistant Secretary, Bureau of Western Hemisphere Affairs, is slated to testify.
• Senate Foreign Relations Subcommittee Hearing: National Security Strategy's Focus on the Western Hemisphere: The Senate Foreign Relations Subcommittee on Western Hemisphere, Transnational Crime, Civilian Security, Democracy, Human Rights, and Global Women's Issues will convene an open hearing on June 3, 2026, at 3:00 PM (Dirksen 419) examining the national security strategy in the Western Hemisphere.
• House Foreign Affairs Hearing: Department of State FY 2027 Budget Request: On June 3, 2026, at 10:00 AM (Rayburn 2172), the House Foreign Affairs Committee will hear testimony from Secretary of State Marco Rubio regarding the FY 2027 budget and America First foreign policy objectives.

Federal Government News

White House Approves Critical Position Pay Authority for National Security Investment Workforce

On May 29, President Donald J. Trump authorized the Office of Personnel Management, in consultation with OMB, to allocate up to 400 critical positions supporting national security investment programs across executive agencies. This approval facilitates pay rates up to $400,000 for highly qualified professionals in investment, engineering, finance, and law, targeting areas including critical minerals, advanced materials, and strategic supply chains. The measure intends to accelerate domestic mineral production, decrease reliance on foreign resources, and reinforce industrial resilience. OPM will oversee implementation, ensuring compliance with statutory and budgetary guidelines. The memorandum specifies that authority is granted only where necessary to attract or retain individuals of exceptional expertise.

Sources: www.whitehouse.gov

U.S. Implements Tariff Modifications under U.S.-Taiwan Trade and Security Agreement

The Commerce Department and the Office of the U.S. Trade Representative have amended the Harmonized Tariff Schedule effective May 28 to fulfill tariff-related terms of the Memorandum of Understanding concluded between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office. Key changes include adjusting Section 232 tariffs for Taiwan-origin automobile parts, timber, lumber, and wood derivatives, limiting duties to no more than 15 percent, and removing derivative steel, aluminum, and copper tariffs from aircraft components imported from Taiwan. The agreement is part of a strategic partnership to strengthen U.S. semiconductor supply chains and support industrial investment. Refunds for affected goods will be processed as per CBP procedures.

Sources: www.federalregister.gov

OFAC Issues Multiple Sanctions Notices on Foreign Individuals and Entities

The Treasury Department's Office of Foreign Assets Control (OFAC) published updates to its Specially Designated Nationals and Blocked Persons List throughout the week. Sanctioned individuals and entities, including extended designations for members linked to the Sinaloa Cartel and various foreign organizations, are barred from transactions involving U.S. jurisdictional property. OFAC also announced the unblocking of some parties previously listed, referencing compliance under Executive Orders 13224 and 14059. These actions affect asset restrictions and transactional prohibitions for U.S. persons. The list, along with sanction program details, is available on the OFAC website.

Sources: www.federalregister.gov, www.federalregister.gov, www.federalregister.gov, www.federalregister.gov

Commerce Reminds Industry of 2025 Offsets Reporting Requirements for Defense Sales

The Bureau of Industry and Security issued a notice highlighting annual reporting obligations for offsets agreements associated with defense articles and services sold to foreign entities. Firms must submit records for contracts involving offset agreements over $5,000,000 and credit transactions above $250,000. Reports for calendar year 2025 are due by June 15, 2026, in both hard copy and electronic format. The Secretary of Commerce compiles this data for an annual report to Congress, safeguarding proprietary details unless authorized. Compliance with 15 CFR part 701 is required to ensure accurate aggregation.

Sources: www.federalregister.gov

Defense Department Opens Public Comment on Foreign Acquisition Data Collection Extension

The Defense Acquisition Regulations System announced a proposed three-year extension for information collection requirements associated with DFARS Part 225 and related clauses. The collection, approved under OMB Control Number 0704-0229, covers contractor obligations regarding Buy American certifications, overseas performance reporting, specialty metals compliance, and trade agreement disclosures. With an estimated 39,221 respondents submitting 382,876 annual reports, DoD uses the data to ensure statutory compliance, reciprocal trade, and balance-of-payments reporting. Public comments on practical utility, accuracy, and burden reduction are sought until July 28, 2026.

Sources: www.federalregister.gov

State Department Seeks Input on Revised Application for Export/Import of Classified Defense Articles

On May 28, the Department of State issued a 60-day notice for public comment regarding the revised "Application for Permanent/Temporary Export or Temporary Import of Classified Defense Articles and Classified Technical Data" (DSP-85). Under the International Traffic in Arms Regulations, completion and approval of DSP-85 is mandatory for transactions involving classified items on the U.S. Munitions List. Estimated respondents stand at 280, with an average response time of 30 minutes. The notice solicits input concerning necessity, accuracy, and efficiency. Comments remain open until July 27, 2026.

Sources: www.federalregister.gov

Presidential Continuation of National Emergency With Respect to Belarus

President Trump, via a May 21 notice, formally extended the national emergency regarding Belarus for one year beyond June 16, 2026. This action retains expanded authorities initially declared in Executive Orders 13405 and 14038, responding to ongoing threats tied to undemocratic governance, political repression, and public corruption in Belarus. The renewal maintains existing sanctions and legal measures as required under the National Emergencies Act.

Sources: www.federalregister.gov

Legislative Updates

Bill 9042: To promote secure and resilient Unmanned Aerial Systems (UAS) for U.S. and Taiwan Defense

Bill 9042 was introduced in the House to foster the development, production, and deployment of secure unmanned aerial systems enhancing U.S. national security as well as defense cooperation with Taiwan in the Indo-Pacific region. As of May 26, it was referred to the House Committee on Foreign Affairs.

Sources: www.congress.gov

Bill 9043: Sex Trafficking Demand Reduction Act

Bill 9043 addresses efforts to diminish demand for sex trafficking. It was introduced and referred to the House Committee on Foreign Affairs on May 26 for further consideration.

Sources: www.congress.gov

Bill 9039: To establish a Venezuela Restoration Fund

Bill 9039 proposes creation of the Venezuela Restoration Fund intended for economic and humanitarian support. The bill was referred to the House Committee on Foreign Affairs as of May 26.

Sources: www.congress.gov

Bill 9028: SEC Registration Prohibition for Entities with Ties to the People’s Republic of China

Bill 9028 seeks to amend securities laws, preventing brokers, dealers, and investment advisers with certain connections to China from registering with the SEC. This bill was referred to the House Committee on Financial Services on May 26.

Sources: www.congress.gov

What We're Reading This Week

• Carney's next defense challenge: Turning promises into contracts: Canadian defense procurement faces new hurdles with contract implementation amid increasing expectations.
• Pakistan: America’s most complicated ally — and why Trump is betting on it again: U.S. political leadership pursues renewed engagement with Pakistan as an unpredictable strategic partner.
• TANVI RATNA: How the war in Iran realigned Europe's energy future around America: The conflict in Iran has prompted European energy supply adjustments favoring American providers.
• Canada Rejects U.S. Military Suppliers in Favor of Swedish Aircraft: Canada contracts Swedish aircraft for its air force, shifting procurement away from U.S. suppliers.
• Australia-India-Japan-US Quad to build a port, unveil pact on critical minerals: Quad partners announce plans for joint port construction and a critical minerals agreement in New Delhi.
• Paris prosecutors probe alleged foreign smear campaigns in local elections: Paris authorities investigate reported foreign interference in municipal elections.

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