In this Special Analysis Edition of The Federal Daily, we examine the Supreme Court’s February 20, 2026 decision holding that the International Emergency Economic Powers Act does not authorize the President to impose tariffs.

This episode moves beyond the daily authority audit format to provide a structured review of the Court’s reasoning, including the role of the major questions doctrine, the constitutional allocation of taxing power, and the division between executive flexibility and legislative authority.

We also discuss the administrative and business implications of the ruling, including the mechanics and uncertainty surrounding potential tariff refunds, and assess alternative statutory pathways such as Sections 232, 301, and 122.

The decision narrows one asserted lane of executive trade authority while reinforcing the Court’s demand for clear congressional delegation in matters of major economic consequence.

The day’s federal activity centered on a Supreme Court ruling redefining executive trade authority and the Treasury’s articulation of economic policy priorities.

The United States Supreme Court held that the International Emergency Economic Powers Act does not authorize the President to impose tariff duties. In a majority opinion, the Court clarified the statutory limits of executive authority under IEEPA, vacated one lower court proceeding for lack of jurisdiction, and upheld another related ruling. The decision constrains presidential discretion over tariff measures and shifts structural leverage over trade policy back toward Congress.

The Treasury Secretary delivered remarks before the Economic Club of Dallas outlining departmental priorities related to economic security, illicit finance, market resilience, and emerging technologies. While not a binding regulatory action, the speech signals Treasury’s supervisory and enforcement posture, shaping interagency coordination and compliance expectations within the financial sector.

Executive branch regulatory and enforcement actions drove institutional authority movement, with shifts concentrated in financial supervision and sanctions execution.

Sudan Sanctions Designations
The Department of the Treasury designated Sudanese paramilitary commanders under existing sanctions authorities. The action imposes binding financial restrictions and reallocates enforcement leverage to the executive branch in response to documented atrocities, directly affecting transaction prohibitions and compliance obligations.

OCC Appeals Rule Proposal
The Office of the Comptroller of the Currency advanced a notice of proposed rulemaking to modify the bank supervisory appeals process. The proposal would alter procedural pathways available to regulated institutions challenging supervisory determinations, affecting administrative review structure within federal banking oversight.

Federal Reserve Regulatory Review
The Federal Reserve approved a banking application and announced a hybrid outreach meeting as part of its regulatory review under the Economic Growth and Regulatory Paperwork Reduction Act. The approval confers operational authority to the applicant institution, while the review process signals potential recalibration of supervisory frameworks and regulatory burden across the banking sector.

Federal institutional movement occurred primarily through administrative channels as Congress remained procedurally inactive.

Congressional Inactivity
The House and Senate convened only in pro forma sessions, with no floor debate, procedural votes, or committee activity. No authority shifted legislatively, reinforcing continued reliance on executive and regulatory processes for near-term policy movement.

NASA Categorical Exclusions
As published in the Federal Register, NASA adopted categorical exclusions under environmental review law. This expands the agency’s discretion to proceed with specified projects without full environmental impact statements, accelerating internal timelines and narrowing procedural constraints.

SEC Exchange Fee Rule
The Securities and Exchange Commission filed a notice of immediate effectiveness regarding exchange connectivity fees. Acting under its oversight authority of self-regulatory organizations, the SEC preserved discretion over market infrastructure costs, affecting trading participants and exchange operations.

Federal institutions operated through procedural continuity and administrative action, with limited legislative output but ongoing regulatory and executive activity.

Congressional Pro Forma Sessions
Both the House and Senate convened brief pro forma sessions, as recorded in the Congressional Record and reflected in legislative calendars. No votes or substantive floor business occurred. These sessions preserved each chamber’s formal status as in session, maintaining constitutional continuity and affecting appointment and oversight authority.

Federal Register Rulemaking Activity
The Federal Register published more than one hundred notices and multiple proposed and final rules across agencies. Ongoing rulemaking, including updates affecting health and safety programs and regulatory requests for information, illustrates continued administrative implementation within existing statutory frameworks.

Executive Order Publication
Executive Order 14386 was published, addressing national defense and energy policy considerations. Publication formalizes executive direction within the administrative process and signals continued executive engagement in industrial and energy policy through established legal mechanisms.

C-SPAN coverage centered on a funding lapse affecting the Department of Homeland Security, executive branch messaging on election security, Senate floor statements, and congressional participation in international security forums.

Lawmakers failed to reach agreement on a Homeland Security funding bill before the statutory deadline, resulting in a partial government shutdown affecting DHS agencies. The lapse marked the third shutdown of the year and underscored how policy disputes can interrupt core appropriations functions of Congress.

At a Department of Homeland Security press conference, Secretary Kristi Noem addressed election security and emphasized coordination with state and local partners. The briefing reflected executive branch efforts to signal operational continuity and institutional priorities amid funding uncertainty.

During a pro forma Senate session, Majority Leader John Thune delivered floor remarks criticizing political positioning around homeland security funding. Although no vote occurred, the statement functioned as public legislative signaling during a procedural session.

C-SPAN also aired portions of the Munich Security Conference, where U.S. lawmakers engaged in discussions on global security and trade. Their participation highlighted congressional involvement in international policy forums beyond formal Capitol Hill proceedings.

C-SPAN programming from Thursday, February twelfth, 2026 focused on congressional oversight of immigration enforcement and the funding mechanics of the Department of Homeland Security. The day highlighted how hearings and appropriations debates interact as tools of legislative influence.

In a Senate Homeland Security and Governmental Affairs Committee hearing, senior DHS officials testified about use-of-force policies following fatal encounters in Minneapolis. Senators questioned training standards, de-escalation practices, and body camera requirements. Officials declined detailed comment on ongoing investigations. The hearing reinforced Congress’s role in examining agency conduct and building a public oversight record.

On the Senate floor, lawmakers resumed consideration of DHS appropriations as a potential funding lapse approached. Debate addressed whether enforcement reforms should be reflected in funding language. The discussion underscored the constitutional link between oversight and the power of the purse, and how appropriations decisions may shape executive branch operations going forward.

C-SPAN’s February 11 coverage centered on a high-profile House Judiciary oversight hearing examining the Justice Department’s handling of sensitive investigative records and Congress’s authority to obtain them.

Justice Department Oversight Hearing
Attorney General Pam Bondi testified before the House Judiciary Committee in a hearing focused on departmental transparency and compliance with congressional subpoenas. Members questioned redaction practices and responsiveness to legislative demands. The exchange highlighted the mechanics of congressional oversight and executive accountability.

Epstein Files Disclosure Practices
Lawmakers raised concerns about the release and redaction of millions of pages tied to the Jeffrey Epstein investigation. Disputes centered on privacy protections, statutory transparency requirements, and the department’s interpretation of disclosure obligations. The issue underscores tensions between victims’ rights, public access, and executive discretion.

Congressional Document Access Disputes
Members from both parties criticized limits placed on access to records in a secure Justice Department reading room. Allegations that access procedures constrained oversight raised broader questions about separation of powers and Congress’s practical ability to review executive branch materials.