On February 3, the House approved the Senate-passed (by a vote of 71 to 29) government funding minibus, S.7148. The House vote was 217 to 214. The process was full of drama and there still remain knotty immigration enforcement issues to work out by February 13. But with the exception of the Department of Homeland Security (DHS), the federal government is now fully funded through September 30, 2026.

President Trump and Congressional Republicans have offered templates for a broad health reform bill. The proposals do not reinstate the expired enhancements to Affordable Care Act (ACA) premium tax credits (PTCs).

On Jan. 26, NAIFA submitted comments on the Centers for Medicare and Medicaid Services’ (CMS’s) “Contract Year 2027 Policy and Technical Changes to the Medicare Advantage Program, Medicare Prescription Drug Benefit Program, and Medicare Cost Plan Program.” NAIFA generally supports the proposed rule but offers suggestions for improvement.

Last month the House approved a bill that bans the use of environmental, social, and governance (ESG) factors in selecting investment choices in retirement plans. HR2988, the Protecting Prudent Investment of Retirement Savings Act, would bar401(k) and pension fund managers from considering ESG factors in making investment decisions.

On Feb. 3, the House Education & the Workforce Committee’s Subcommittee on Health, Employment, Labor, and Pensions held a hearing to explore issues surrounding the readiness of American companies and workers to compete and succeed in an economy driven by artificial intelligence (AI). The issues examined focused on worker protections.

In Notice 2026-9, the Internal Revenue Service (IRS) announced an extension of the deadline for required plan amendments needed due to provisions enacted into law in SECURE 2.0. The new December 31, 2027, deadline covers needed amendments to SEPs, SIMPLE IRAs, and IRAs. The old deadline was at the end of 2026.

On January 14, the Internal Revenue Service (IRS) issued interim guidance on the new depreciable property deductions enacted in last year’s tax and spending cuts law. The guidance is in Notice 2026-11.

The Internal Revenue Service (IRS) has released guidance (FS 2026-01) on the new deduction for qualified overtime (OT) pay. The guidance is in the form of frequently-asked questions (FAQs).

On Jan. 5, the Department of Labor’s (DOL’s) Wage and Hour Division (WHD) issued opinion letters covering specific overtime, worker classification, and Family and Medical Leave Act (FMLA) issues. The agency said the opinion letters, which apply only to the taxpayer requesting them, are designed “to promote clarity, consistency, and transparency in the application of federal labor standards under the Fair Labor Standards Act and Family and Medical Leave Act. The opinion letters provide official written interpretations from the division that address real-world questions and explain how laws apply to specific factual circumstances presented by individuals or organizations that may also have a broader interest to those impacted by the issue presented.”

Last month the Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) proposed new regulations governing pharmacy benefit managers (PBMs) to provide more transparency to group health plans. The regulation, which applies to PBM services to self-funded ERISA group health plans, derives from ERISA 408(b) welfare benefit plan authority.

NAIFA continued its fight to reduce red tape in Washington impacting small businesses by partnering with other trades associations to send a letter to U.S. House Majority Leader Steve Scalise (R-LA) urging Congress to pass legislation to strengthen the Regulatory Flexibility Act (RFA) to reduce the impact of burdensome regulations on small businesses.

On January 5, the 119^th Congress began what looks to be a contentious second session ahead of the November mid-term elections. Lawmakers face a swath of deadline-driven controversial must-do issues, including the need to fund most of the government for the balance of fiscal year (FY) 2026.

On January 8, with 17 Republicans joining all Democrats, the House passed a bill, H.R.1834, that would reinstate the now-expired enhanced Affordable Care Act (ACA) health insurance premium tax credits (PTCs) that were at the heart of the October-November government shutdown. The vote was 230 to 196.

On December 17, the House of Representatives passed a bill, H.R.6703, that would make it easier and/or less expensive for individuals to buy health insurance and/or for employers to offer health insurance to their workers. However, the bill did not include an extension of the now-expired enhanced Affordable Care Act (ACA) health insurance premium tax credits (PTCs). The vote was 216 to 211.

Rep. Richard Neal (D-MA), ranking member on the House Ways & Means Committee, has reintroduced his automatic IRA legislation. The bill would require employers to enroll their workers (subject to a worker opt-out right) into workers’ individual IRAs.

On January 7, the House Education and the Workforce’s Subcommittee on Health, Employment, Labor and Pensions held a hearing on the role of lifetime income strategies, including annuities, on retirement savings in the current environment of rapidly-decreasing traditional pension plans.

On December 22, the Internal Revenue Service (IRS) issued Fact Sheet (FS) 2025-10, guidance on the rules governing Affordable Care Act (ACA) health insurance premium tax credits (PTCs) now that the enhancements to the PTCs enacted in 2020 have expired.

The co-chairs and members of the Congressional Bipartisan Fiscal Forum (BFF) have introduced a resolution calling on Congress to enact legislation to reduce the federal deficit to three percent of gross domestic product (GDP). A deficit that amounts to about three percent of GDP would be about half of its current (six percent of GDP) level.

In Notice 2026-06, the IRS and Treasury extended for one year the transition relief for employers now obligated to comply with employment tax and reporting obligations related to federal and state paid family and medical leave programs. This means the IRS will treat 2026 as a continued transition period with respect to medical leave benefits paid by a state that are attributable to employer contributions.

The Securities and Exchange Commission issued a bulletin this week (Updated Investor Bulletin: An Introduction to ABLE Accounts | Investor.gov) providing information on ABLE accounts including the changes made by H.R. 1. An Achieving a Better Life Experience (ABLE) account provides a tax-advantaged method to save for qualified disability expenses. Contributions are not tax deductible for federal income tax purposes, but investments can grow tax free and remain so when withdrawn and used for qualified disability expenses. Qualified disability expenses are expenses used to maintain or improve the account owner’s “health, independence, or quality of life.” Qualified disability expenses are broadly defined and may include expenses related to education, food, housing, transportation, employment training and support, assistive technology, personal support services, health care expenses, financial management, administrative services and other expenses.