In his State of the Union speech on Feb. 24, President Trump called for an as yet undefined new retirement savings program for those whose employers do not offer an employer-sponsored retirement savings plan. He did not get into details, and Hill knowledge of his plan is extremely limited. However, speculation (some at least somewhat informed but some just guesses) is rampant.

Two Senate Committee chairs wrote to Treasury to tell them to cut capital gains tax liability by adjusting calculations of basis to account for inflation. The two Senators argue that it is unfair to include gains due to inflation in the calculation of taxable gain. They also noted that adjusting capital asset basis to reflect gain due to inflation would help with the GOP priority of making housing more affordable.

NAIFA joined a trade association coalition in sending a letter to House Majority Leader Steve Scalise (R-LA) urging Congress to pass legislation to strengthen the Regulatory Flexibility Act (RFA) to reduce the impact of burdensome regulations on small businesses. NAIFA further urges Congress to enact long-term solutions during the 119th Congress that reduce regulatory compliance burdens and red tape for small businesses.

Treasury Secretary Scott Bessent delivered remarks at the Financial Literacy and Education Commission, which he chairs, stating his desire “to improve financial literacy and education for all Americans in partnership with private and non-profit sector partners.”

“I have long believed that financial education is most powerful when it is lived, not just taught,” he said, echoing sentiments recently expressed by NAIFA President Christopher Gandy. In an InsuranceNewsNet column, Gandy wrote:

On February 26, 2026, the U.S. Department of Labor released its newly proposed independent contractor rule to determine whether workers are employees or independent contractors under the Fair Labor Standards Act.

On February 3, the House approved the Senate-passed (by a vote of 71 to 29) government funding minibus, S.7148. The House vote was 217 to 214. The process was full of drama and there still remain knotty immigration enforcement issues to work out by February 13. But with the exception of the Department of Homeland Security (DHS), the federal government is now fully funded through September 30, 2026.

President Trump and Congressional Republicans have offered templates for a broad health reform bill. The proposals do not reinstate the expired enhancements to Affordable Care Act (ACA) premium tax credits (PTCs).

On Jan. 26, NAIFA submitted comments on the Centers for Medicare and Medicaid Services’ (CMS’s) “Contract Year 2027 Policy and Technical Changes to the Medicare Advantage Program, Medicare Prescription Drug Benefit Program, and Medicare Cost Plan Program.” NAIFA generally supports the proposed rule but offers suggestions for improvement.

Last month the House approved a bill that bans the use of environmental, social, and governance (ESG) factors in selecting investment choices in retirement plans. HR2988, the Protecting Prudent Investment of Retirement Savings Act, would bar401(k) and pension fund managers from considering ESG factors in making investment decisions.

On Feb. 3, the House Education & the Workforce Committee’s Subcommittee on Health, Employment, Labor, and Pensions held a hearing to explore issues surrounding the readiness of American companies and workers to compete and succeed in an economy driven by artificial intelligence (AI). The issues examined focused on worker protections.

In Notice 2026-9, the Internal Revenue Service (IRS) announced an extension of the deadline for required plan amendments needed due to provisions enacted into law in SECURE 2.0. The new December 31, 2027, deadline covers needed amendments to SEPs, SIMPLE IRAs, and IRAs. The old deadline was at the end of 2026.

On January 14, the Internal Revenue Service (IRS) issued interim guidance on the new depreciable property deductions enacted in last year’s tax and spending cuts law. The guidance is in Notice 2026-11.

The Internal Revenue Service (IRS) has released guidance (FS 2026-01) on the new deduction for qualified overtime (OT) pay. The guidance is in the form of frequently-asked questions (FAQs).

On Jan. 5, the Department of Labor’s (DOL’s) Wage and Hour Division (WHD) issued opinion letters covering specific overtime, worker classification, and Family and Medical Leave Act (FMLA) issues. The agency said the opinion letters, which apply only to the taxpayer requesting them, are designed “to promote clarity, consistency, and transparency in the application of federal labor standards under the Fair Labor Standards Act and Family and Medical Leave Act. The opinion letters provide official written interpretations from the division that address real-world questions and explain how laws apply to specific factual circumstances presented by individuals or organizations that may also have a broader interest to those impacted by the issue presented.”

Last month the Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) proposed new regulations governing pharmacy benefit managers (PBMs) to provide more transparency to group health plans. The regulation, which applies to PBM services to self-funded ERISA group health plans, derives from ERISA 408(b) welfare benefit plan authority.

NAIFA continued its fight to reduce red tape in Washington impacting small businesses by partnering with other trades associations to send a letter to U.S. House Majority Leader Steve Scalise (R-LA) urging Congress to pass legislation to strengthen the Regulatory Flexibility Act (RFA) to reduce the impact of burdensome regulations on small businesses.

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.

On January 8, with 17 Republicans joining all Democrats, the House passed a bill, H.R.1834, that would reinstate the now-expired enhanced Affordable Care Act (ACA) health insurance premium tax credits (PTCs) that were at the heart of the October-November government shutdown. The vote was 230 to 196.

On December 17, the House of Representatives passed a bill, H.R.6703, that would make it easier and/or less expensive for individuals to buy health insurance and/or for employers to offer health insurance to their workers. However, the bill did not include an extension of the now-expired enhanced Affordable Care Act (ACA) health insurance premium tax credits (PTCs). The vote was 216 to 211.

Rep. Richard Neal (D-MA), ranking member on the House Ways & Means Committee, has reintroduced his automatic IRA legislation. The bill would require employers to enroll their workers (subject to a worker opt-out right) into workers’ individual IRAs.