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.

Currently, nine of the 12 regular order appropriations bills must be done by January 30, the date that existing funding authority expires. Among the nine are bills that will impact programs and services that matter to insurance and financial advisors. These bills will fund the regulations-writing activities at the Departments of Labor (DOL), Health & Human Services (HHS), and Treasury.

Congressional negotiators are finding overall spending agreement on some of the nine outstanding appropriations bills, but so far there is no imminent agreement on DOL, HHS, or Treasury funding.

Prospects: Failure to reach agreement risks another government shutdown of any government functions that are not funded by January 30. Currently, Washington insiders think odds of another shutdown are less than 50-50, but acknowledge the possibility. With very narrow GOP majorities (two votes in the House, three votes in the Senate), it will be a struggle to find compromises that can win the support needed to enact this legislation. Complicating the issue is the looming specter of the November mid-term elections which could bring a shift in partisan control, especially in the House. But no one wants another government shutdown and so the betting is that one way or another Congress will figure out how to fund the rest of the government without first shutting it down.

NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Mike Hedge – Senior Director – Government Relations, at mhedge@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.