At the end of July the House recessed until August 31; the Senate followed suit on August 8, until after Labor Day. Congress left for five weeks with many unresolved, pressing issues, including government funding and a budget bill that could pull in NAIFA issues in September.

In an effort to prevent a potential government shutdown on October 1 (the start of the federal government’s new fiscal year), Congressional Republicans are prepping legislation to keep the government fully funded until at least mid-December. The House and Senate approaches differ, but both would generally continue current funding levels until after the November mid-term elections.

Congressional Republicans are working on another all-GOP budget reconciliation bill that must first be authorized by a Congressional Budget Resolution (CBR). The House CBR (H.Con.Res.113) is narrow, providing funding only for Defense; Agriculture; and incentives for the States to enact stricter voter identification, proof of citizenship, and other voting rules. The CBR is controversial even among Republicans, and the issues it excludes have triggered promises from leadership to do yet another all-GOP reconciliation bill during lame duck, after the November elections.

The top Democrats on the tax-writing Senate Finance and House Ways & Means Committees have introduced legislation to scale back on multi-million dollar IRAs that they say are used primarily as tax shelters rather than as retirement savings vehicles. Introduced by ranking members Sen. Ron Wyden (D-OR)/Finance and Rep. Richard Neal (D-MA)/Ways & Means, S. 5040 and H.R. 9813 would:

On July 30, Senate Finance Committee Democrats released a policy paper discussing ways to get to universal, affordable health care coverage. The committee is also asking for input on these and other ways to achieve universal coverage of health care.

The Senate Finance Committee said it will look at all options to shore up the Social Security program’s finances, including raising the payroll cap, adjusting benefits, establishing a commission to recommend changes for Congress to consider on a fast-track legislative basis, and establishing what amounts to private sector investment accounts for Social Security beneficiary contributions. The committee held a hearing on August 5 to explore these and other ideas.

In Notice 2026-48, the Internal Revenue Service (IRS) and Treasury announced an “intent to propose regulations regarding the federal Saver’s Match program, which beings in 2027.” The Notice describes anticipated Saver’s Match rules, and requests comments as the agencies consider future proposed regulations.

The nomination of Keith Sonderling, President Trump’s pick to head the Department of Labor (DOL), has been approved by the committee of jurisdiction and now awaits a confirmation vote by the full Senate. Sonderling is currently Acting DOL Secretary.

On August 7 the Senate approved Cameron Hamilton as Federal Emergency Management Agency (FEMA) Administrator. Hamilton returns to the agency after having been ousted early in 2025 as FEMA’s acting head for resisting calls to eliminate the agency.

The Department of the Treasury and the Internal Revenue Service issued proposed regulations providing guidance to employers that choose to make contributions to section 530A (“Trump”) accounts for employees or their dependents. The proposed regulations also clarify nondiscrimination requirements for employers offering Trump account contribution programs and dependent care assistance programs.

Congress is embroiled in a challenging month, with government funding, new taxes, and other high-profile and controversial issues facing lawmakers ahead of their scheduled August recess. The sudden passing of Senator Lindsey Graham (R-SC), Chair of the Senate Budget Committee, will further complicate the ability to move legislation. Among the issues of interest to NAIFA are potential tax proposals that would index capital gains, increase the deduction for non-corporate business income, and impose new tax rules on cryptocurrency; offsetting tax increases; and health care affordability.

The Trump Administration has launched Trump Accounts, the new savings accounts for children program. Included in the July 4 launch were links to Trump Account apps, a list of financial institutions that will be administering the accounts, and a summary of how parents can set up Trump Accounts for their children. NAIFA supports the Trump Accounts program, and has pledged to help clients and prospects participate in it.

On July 1, the House Education and the Workforce Committee’s Subcommittee on Health, Employment, Labor and Pensions held a hearing on the potential for direct health care contracts to reduce health care costs. The hearing generated considerable interest from both Republicans and Democrats on the subcommittee.

On June 30, in a rare bipartisan 51 to 0 vote, the House Committee on Financial Services approved H,R.7187, the Clarity for Compensation Act. The NAIFA-supported bill—it was a key element lobbied for at the May Congressional Conference—now heads to the House floor for a vote. It then must be approved by the Senate.

In comments submitted in connection with the Department of Labor’s (DOL’s) proposed regulation regarding use of alternative investments in retirement plans, retirement industry representatives are encouraging the rule writers to include in their final rule specific examples that demonstrate how a fiduciary can include a collective investment trust (CIT) in a retirement plan’s investment options and still satisfy the proposed new rule through use of its safe harbor.

The House of Representatives has passed, by a vote of 414-2, H.R.2478, the bipartisan Financial Exploitation Prevention Act. The bill would strengthen protections preventing the financial exploitation of seniors and other vulnerable adults by granting investment firms and financial institutions the legal authority to temporarily pause suspicious transactions.

The Internal Revenue Service (IRS) and Treasury have issued a final regulation (RIN 1545-BQ58) designating certain trust arrangements (“certain arrangements purporting to be charitable remainder annuity trusts”) as listed (tax shelter) transactions. Designation as a listed transaction subjects promoters of the transactions to disclosure rules and potential substantial penalties.

On June 24, the Senate Finance Committee’s Subcommittee on Social Security held a hearing on ways to solve the looming shortfall in funding for Social Security benefits. While most Republicans expressed opposition to raising the wage cap, there were some who joined with Democrats in supporting the idea.

On July 3, in its mid-year regulatory plan, the Department of Labor (DOL) said it will continue to issue guidance that will allow more alternative (private equity, cryptocurrency, etc.) investments in retirement plans.

President Trump has nominated Keith Sonderling to serve as Secretary of the Department of Labor (DOL). Sonderling is currently serving as DOL’s acting secretary, following the resignation last April of then-Secretary Lori Chavez DeRemer.