On May 18, Sen. Bernie Sanders (I-VT) and Rep. Mark Takano (D-CA) introduced legislation (S.4551/H.R.8868) to raise the salary threshold in the white-collar exemption to overtime (OT) rules. The Restoring Overtime Pay Act would phase in an increase in the salary threshold from the current $35,256 to as much as $98,000 by 2030.

On May 13, the Senate confirmed Kevin Warsh as the new chairman of the Fed. The vote was 54 to 43. One Democrat joined all Republicans in voting to confirm Warsh.

President Trump has signed an Executive Order (EO) directing Treasury to make available through the federal government low-cost and in some cases subsidized IRAs. The TrumpIRA.gov program is targeted towards people who do not have access to employer-sponsored retirement savings plans, and to lower and middle-income Americans.

NAIFA has written a letter of support for the Department of Labor’s (DOL’s) new proposed independent contractor rule. The letter notes that most NAIFA members are independent contractors, and specifically supports the economic reality test that DOL is proposing.

The Senate’s top Democratic tax writer has introduced legislation to prevent use of private placement life insurance (PPL), GRATs, and carried interest as tax shelters. These bills are part of a package of what the bill’s author, Sen. Ron Wyden (D-OR), calls anti-tax-cheat loophole closers. Sen. Wyden is the ranking member of the tax writing Finance Committee, and the committee’s likely chairman if the Democrats take control of the Senate in 2027.

Congress has still not completed the appropriations process for fiscal year (FY) 2026—funding for the Department of Homeland Security’s (DHS’s) immigration functions (ICE and Border Control) remains undone—but lawmakers did pass legislation to fund the rest of DHS—including money to pay TSA officers (thus averting renewed risk of more air travel disruptions).

A new entrant to Democrats’ tax-the-rich set of proposals is one that would impose new tax liability on trusts with assets in excess of $50 million. The Fair Trusts for Fiscal Responsibility Act of 2026 was introduced on May 4 by Sens. Patty Murray (D-WA), Ron Wyden (D-OR), Chris Van Hollen (D-MD), Cory Booker (D-NJ), and Angela Alsobrooks (D-MD).

A bipartisan pair of House tax writers has introduced H.R.6324, the Retirement Simplification and Clarity Act, a bill aiming to provide simplified and clarified rules for retirement savings. Authors of the bill are Reps. Jimmy Panetta (D-CA) and Darin LaHood (R-IL).

Rep. Adrian Smith (R-NE), a member of the tax-writing Ways & Means Committee, has introduced a bill to make the Trump Accounts program permanent. H.R.8313 would eliminate the2028 expiration date of the pilot program that allows a federal $1,000 contribution to Trump Accounts for children.

The GUARD Financial Data Act, introduced by Rep. Bill Huizenga (R-MI), Vice Chair of the House Committee on Financial Services, would create a modern data privacy framework for financial services companies to protect consumers’ personal information. NAIFA has joined the American Council of Life Insurers, American Property Casualty Insurance Association, Council of Insurance Agents and Brokers, Independent Insurance Agents and Brokers of America, and National Association of Mutual Insurance Companies to send a letter to Rep. Huizenga in support of the legislation.

While a Securities and Exchange Commission (SEC) staff statement carries no force of law, it does signal staff thinking on an issue. In this case, the SEC’s Division of Investment Management is signaling that a pooled employer plan (PEP) can invest in a collective investment trust (CIT) without running afoul of the single trust exclusions in the Investment Company Act or the Securities Act’s Section 180.

The Internal Revenue Service (IRS) has extended the deadline for appealing a denial of an employee retention tax credit (ERTC) claim, and for paying a claim after the two-year deadline for an appeal of a denied claim.

On April 20, Lori Chavez-DeRemer abruptly resigned as Secretary of the Department of Labor (DOL). Keith Sonderling is now Acting Secretary.

Chavez-DeRemer was embroiled in growing scandal at DOL where she, her husband and a number of her key staffers were under investigation for improper behavior. Many labor insiders believe that as a result Sonderling has been the real behind-the-scenes head of DOL for quite some time. He has served in a number of workplace policy roles and is known to be influential in the Trump White House.

On April 14, a group of bipartisan lawmakers in the House and Senate introduced two bills aimed at helping family caregivers prepare for retirement. Cosponsored by Sens. Susan Collins and Mark Warner and Reps. Maria Salazar and Brittany Petterson, the Catching Up Family Caregivers Act of 2026 (S. 4291 / H.R. 8273) allows family caregivers additional years of eligibility for the highest catch-up contribution levels in employer-sponsored retirement plans and IRAs, with qualifying caregivers eligible for up to five additional years of maximum catch-up contributions. Under current law, catch-up contributions allow individuals over age 50 to contribute above the standard annual limit, with even higher limits available for those aged 60-63. The legislation grants similar allowances to family caregivers.

At the Spring NCOIL Meeting, the Life Insurance and Financial Planning committee heard presentations from the TIAA Institute and the American Academy of Actuaries highlighting that strong retirement security policy should aim to support 80% income replacement, expand access to retirement savings vehicles, and address the distinct challenges gig workers face through solutions such as auto-IRAs, portable benefits, and enhanced financial education.

On March 17, 2026, the U.S. District Court for the Northern District of Texas issued a final order vacating (killing) the Department of Labor’s (DOL’s) final 2024 fiduciary rule. Shortly thereafter, DOL’s Employee Benefits Security Administration (EBSA) signaled it would not appeal the decision, and restored the 1975 five-part test with which fiduciaries must comply that determines when advisors are indeed acting in the best interests of their clients.

On April 3, President Trump sent to Capitol Hill his proposed Fiscal Year (FY) 2027 budget proposal. The $2.2 trillion package, which increases overall spending by about 15 percent over last year, calls for significantly more money for defense but proposes deep cuts in social program spending.

Congress is preparing to tackle a second purely partisan budget bill, starting as soon as this month. This poses risks (from offsetting revenue proposals) as well as opportunities (for proposals like indexing capital gains or a new retirement savings plan (Trump Accounts for Adults)).

On March 30, the Department of Labor (DOL) released a proposed rule that provides a safe harbor to fiduciaries for offering alternative investments (e.g., private equity, cryptocurrency, certain annuities, etc.) in retirement savings plans. This follows up President Trump’s Executive Order 14330 instructing DOL to issue rules allowing section 401(k) plans to invest in private markets and to reduce litigation risk.

In recent weeks a number of Democrats in both the House and Senate have offered wealth tax proposals that would impose current tax liability on unrealized gains in wealthy taxpayers’ assets. Generally, the proposals target the super wealthy—those with assets of $50 million or more. Some include higher income tax rates on wealthy taxpayers’ income, too. All are or will be in the debate over deficit reduction, offsetting revenue, and the fairness of the tax code.