Ethanol politics helps delay spending package

By Andres Picon | 01/22/2026 06:45 AM EST

Biofuel boosters made a last-minute appeal for E15 language to become part of the latest fiscal 2026 minibus.

Rep. Zach Nunn (R-Iowa) speaks during a press conference on Capitol Hill.

Rep. Zach Nunn (R-Iowa) introduced a contentious biofuels amendment to spending legislation. Francis Chung/POLITICO

House leaders want to vote Thursday on four fiscal 2026 spending bills — without a provision authorizing year-round E15 biofuel sales despite a last-minute push from farm-district Republicans.

The likely omission of the biofuel language — a perennial priority for lawmakers from Midwest and Plains states — bodes well for the bipartisan spending bills and Congress’ effort to avoid a shutdown at the end of next week.

But it represents yet another setback for the biofuel backers and the agriculture lobby, who worked all day Wednesday to try to get the provision into the “must-pass” spending deal.

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“E15 is one of the most important things for folks back home in Iowa, and we’re gonna make sure it gets done,” said Republican Rep. Zach Nunn, who introduced the biofuel amendment to the spending package.

The House Rules Committee called it quits Wednesday night before deciding what amendments to make in order for floor debate. Conservatives were also demanding votes on some of their priorities. The panel plans to reconvene Thursday morning.

Even if leaders agree to some amendment votes, the ethanol language is unlikely to be added. It could instead ride on a supplemental funding package the Senate may try to pass later this year, POLITICO reported.

The fiscal 2026 “minibus” includes the Defense, Labor-HHS-Education and Transportation-HUD bills. The House will vote on the Homeland Security bill separately Thursday because of Democratic opposition. Collectively, the spending measures contain tens of billions of dollars in funding for energy and environment programs.

Nunn’s proposed amendment was a version of the “Nationwide Consumer and Fuel Retailer Choice Act” — H.R. 1346 and S. 593 — from Nebraska Republicans Rep. Adrian Smith and Sen. Deb Fischer.

Supporters made a last-ditch effort to get it included in a spending bill at the end of 2024, and they tried again to get it into the fiscal 2026 defense policy bill.

The language has been nixed each time amid concerns from hard-line conservatives and members who represent certain oil refiners.

The American Petroleum Institute struck a deal with agriculture and biofuels groups earlier this month, sparking more GOP infighting over the legislation.

This latest effort fizzled Wednesday amid opposition from House GOP leaders, a number of Republican senators and the White House.

Trump administration officials believed adding the language to the negotiated spending package would have hurt its chances of passing this week, risking a shutdown after Jan. 30, POLITICO reported.

“It doesn’t belong in an approps bill,” House Appropriations Chair Tom Cole (R-Okla.) said of the biofuels proposal. “I’m disappointed anybody would use a rule vote as a weapon to try and get what they want.”

Cole added, “This is the whole funding of the government at stake; you don’t risk it over some personal things.”

Some of the E15 proposal’s backers suggested Wednesday they could threaten to vote against the “rule” for debate of the spending package if they did not get a vote on their amendment. It remains unclear how they will vote on the procedural motion.

“Leadership is committed to getting a solution on E15,” said one House Republican involved in the discussions with leadership, who was granted anonymity to discuss ongoing negotiations. “I can tell you that the members who were involved are absolutely driven to make sure this happens.”

More energy, environment amendments

Conservatives may get some amendment votes to secure their support on the overall package. Democrats submitted dozens of their own proposals, too.

Colorado Republican Reps. Lauren Boebert and Jeff Hurd filed an amendment that would add the text of H.R. 131, the “Finish the Arkansas Valley Conduit Act,” which would help finish a water infrastructure project.

The bill passed both chambers unanimously but was vetoed by President Donald Trump. The House did not produce the votes necessary to override the veto.

One Democratic amendment would transfer $70 million from the office of the secretary of the Department of Health and Human Services and direct it to the Low Income Home Energy Assistance Program.

Rep. Jared Moskowitz (D-Fla.) filed an amendment that would prohibit the Federal Emergency Management Agency from using funds to support a directive requiring DHS Secretary Kristi Noem to approve all expenditures over $100,000.

Other amendments are aimed at stopping the Trump administration from extracting oil in Venezuela or invading Greenland.

Reporters Kelsey Brugger, Meredith Lee Hill and Grace Yarrow contributed.