Congress returned this week from the holiday recess facing a long list of unfinished legislative business. Top on the list is to complete action on the remaining FY 2026 funding bills. In its last action prior to recess, Congress ended the longest government shutdown by passing a package three of the twelve full-year appropriations bills and approving a Continuing Resolution (CR) to fund the rest the government until January 30, 2026. Nine bills still need to be finalized. The Department of Agriculture legislation was one of the three approved bills so USDA programs are no longer threatened. The transportation appropriations bill was not finalized which could affect some programs; however, highway and bridge construction programs are not directly impacted because they are funded through the Highway Trust fund. Negotiations are ongoing for the remaining bills, but key disagreements, especially on Defense and HHS, suggest another temporary fix (CR) may be needed.
A fight between Republicans and Democrats over national health-care policy is still a sticking point. Disagreement over continuing additional subsidies for Affordable Care Act insurance was the major sticking point leading to the shutdown. An attempt to find common ground on health costs may be stronger now after the estimated economic damage caused by the last stalemate. The House is expected to vote on a three-year extension of the subsidies soon. A vote in the Senate was promised as part of the agreement to end the shutdown. While the bill is expected to pass the House, the Senate has already rejected previous extension attempts and final approval will be difficult.