Pending regulatory initiatives on such issues as the fiduciary rule, worker classification, noncompete agreements, and the white-collar exception to overtime rules could be delayed due to the government shutdown, and/or to budget cuts that might be imposed by Congress.

Staffing cuts, program funding cuts, and the government shutdown due to inability to agree on legislation to fund the government in fiscal year (FY) 2026 mean federal agencies will take longer—in some cases much longer—to propose and/or finalize new regulations even where those new proposals are priorities for the Administration.

Added to that is the competing need to quickly get out implementing rules on the newly enacted tax and spending cuts reconciliation law. Many of the provisions in the new law—including tax-free qualified overtime—are effective in 2025 and so rules on how these new tax benefits work are urgently needed. The need to get those rules out ASAP will bump work on other pending regulatory initiatives that require Treasury input.

Prospects: It may well take more time than both regulators and those regulated would want, but it is near-certain that the Treasury Department (on tax issues), the Department of Labor (on such issues as fiduciary, overtime, and worker classification), and Health and Human Services (on health-related issues, including agent compensation) will in fact get out newly-proposed regulations. Many may wait until 2026, but they are coming. In the meantime, most of the concern is focused on regulations needed to implement new law provisions, like the special deduction for certain seniors, the qualified overtime rule, and others.

 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.