Leaving behind a long list of unaddressed priorities, the 119^th Congress has left Washington to return to their States and Districts until after the midterm elections on November 3. Among the must-do issues that remain undone is funding for the federal government, from December 11 until the September 30, 2027 end of the fiscal year.

Control of the 120^th Congress will be determined by the midterm November election results. And whichever party wins control will heavily influence the incoming 120^th Congress’s agenda. Less than a month out from the elections, here is what polling and predicting suggest may happen.

On October 1, the Treasury Department announced it had set up (automatically enrolled) Trump accounts for more than 60 million U.S. children (those for whom the government has Social Security numbers). However, a child’s parent/guardian must “claim” the account before the account can accept contributions (or the $1000 the government will contribute to eligible children (those born between 1/1/25 and 12/31/28) or their share of lump-sum contributions being made by the wealthy and by some corporations).

The Internal Revenue Service is considering a flurry of comments from employers about how to participate in funding Trump Accounts for the children of their employees. The comments are in response to a Trump Account regulation proposed this past August. Many questions have been raised about definitions, required documentation, coordination with other contributors, discrimination rules, and other issues.

On September 28, the Department of Labor (DOL) sent to the White House’s Office of Information and Regulatory Affairs (OIRA) for its review the final worker classification rule. The final rule is likely to base determination of whether a worker is an employee or an independent contractor on two primary factors: the worker’s control over his/her work process, and the worker’s opportunity for profit or loss.

Last month, the House Democrats’ Cost-of-Living Healthcare Working Group (one of several working groups set up by the Democratic Leader to assist in creating a Democratic agenda for the next Congress) presented to House Democratic Leader Rep. Hakeem Jeffries (D-NY) a list of health policy actions that House Democrats could prioritize in the 120^th Congress.

On September 29, Senate Republicans successfully blocked a Democrats-led CRA (Congressional Review Act) effort to stop a Centers for Medicare and Medicaid Services (CMS) rule on standardized health plans in the individual health insurance market.

On October 1, Rep. Bobby Scott (D-VA), ranking member of the House Education & the Workforce Committee, introduced HR 10702, a bill that would codify much of the Department of Labor (DOL) fiduciary rule that the courts struck down and then DOL withdrew in March, 2026. In particular, the Scott bill (the Workers’ Retirement Savings Protection Act) would impose fiduciary duty using a best interest standard on “advice on 401(k)s, IRAs and rollovers, even if the advice is given on a one-time basis.”

On September 16, the House Ways and Means Committee approved, on a bipartisan 38 to 5 vote, H.R.10257, the Digital Asset Tax Certainty Act (DACTA). The bill was introduced by the committee’s chairman, Rep. Jason Smith (R-MO), with eight cosponsors who serve on the committee, including one Democrat (Rep. Stephen Horsford (D-NV)).

On September 30, retiring Senate Finance Committee member Sen. Steve Daines (R-MT) introduced S.5616, the ADAPT (Aligning Digital Assets with Principles of Taxation) Act. The bill sets up a framework for taxing digital assets.

On September 24, Senate Finance Committee Ranking Member Sen. Ron Wyden (D-OR) introduced S.5507, the Saver’s Match Enhancement Act (SMEA). The bill would make the Saver’s Match a Roth contribution (taxable when contributed, tax-free when withdrawn). It would double the current law Saver’s Match from 50 percent to 100 percent (from $1,000 to $2,000).

On October 1, Rep. Ralph Norman (R-SC) reintroduced his Capital Loss Inflation Fairness Act (HR 10690). The bill would raise the current capital loss deduction limit from $3,000 to $14,250. For married taxpayers filing separately the capital loss deduction would go up to $8,625, from $1,500. The bill would also index the deduction limit.

On September 30, the Senate passed, by unanimous consent, HR 5284, the Claiming Age Clarity Act, a bill that re-labels the times at which individuals can claim their Social Security benefits. Because the House passed the bill in December, 2025 (by voice vote), it is now on its way to President Trump to be signed into law.

On September 30, on a party line 47 to 41 vote, the Senate confirmed Keith Sonderling as Secretary of the Department of Labor (DOL). Sonderling had been Acting DOL Secretary since this past April. He is also Acting Director of the U.S. Office of Government Ethics

On September 1, the House of Representatives approved the Senate-passed continuing resolution (CR) that will fund the federal government’s discretionary spending through December 11. The CR includes extension of authorization and funding for the National Flood Insurance Program (NFIP), also through December 11. The vote was 370 to 48. President Trump signed the measure into law on September 2, thus averting a government shutdown and stoppage of the NFIP prior to the November elections.

This Congress’s familiar difficulty in reaching consensus on key issues means most important issue resolutions will be deferred to the 119^th Congress’s five-to-six-week lame duck session that will be convened after the November elections. Among the issues that NAIFA supports and has proactively asked Congress to enact but are unlikely to be addressed prior to the late September/early October pre-election recess are:

Treasury Secretary Scott Bessent said on September 8 that President Trump will try to get Congress to do deficit reduction during the 119^th Congress’ lame duck session (November-December of this year) if Democrats gain control of the House, Senate or both in the midterm elections. He said he was in discussions with Office of Management and Budget (OMB) Director Russ Vought to craft a "fiscal consolidation" plan that "could potentially" reduce the federal deficit.

On September 3, the Securities and Exchange Commission (SEC) proposed a rule (RIN 3235-AN65) that would rescind the 16-year-old “pay-to-play” rule (Rule 206(4)-5) that prevents state and local entities, including public pension funds, from doing business with investment advisors who, within two years, made political contributions of $150 to $350 or more to state and local elected officials.

On August 14, the Treasury Department released a final rule that exempts U.S. companies and individuals from having to report beneficial ownership information (BOI) required by the Corporate Transparency Act (CTA).

On August 21, the Treasury Department issued a Notice of Proposed Rulemaking (NPRM)—RIN 1545-BS 14—that proposes rules to govern eligible investments of Trump Account funds. In its NPRM Treasury said only investments that comply with the rules in the regulation (when it is finalized) will be allowed to accept Trump Account funds. “The proposed regulations would provide guidance regarding eligible investments, which are the only assets in which Trump Account funds may be invested before the first day of the calendar year in which the account beneficiary attains age 18,” Treasury said. This proposed regulation builds on Notice 2025-68, on which comments were received and from which modifications were made.