The House and Senate have passed different Congressional Budget Resolutions (CBRs). Now, the two chambers must reconcile the differences to pass identical CBRs to unlock the budget process (reconciliation) that could bring deep mandatory and discretionary spending cuts, a huge tax package, and possibly an increase in the debt limit.

The Financial Crimes Enforcement Network (FinCEN) announced that it is again going to enforce the beneficial ownership interest (BOI) rule that was enacted as part of the Corporate Transparency Act (CTA). But, FinCEN said on February 27 that it will not impose fines or penalties until after it finalizes new reporting rules that would narrow the BOI reporting rule to foreign reporting companies. The new reporting deadline is March 21, 2025.

On February 28, Department of Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. announced the agency will no longer accept public comments on many of its rulemaking initiatives. This could impact rules important to NAIFA members, such as many Affordable Care Act (ACA) rules, including compensation for advisors on ACA insurance purchases.

Staffing cuts, federal agency and program relocation, and contract review (and potential cancellation) have started across the federal government. In conjunction with the Administration's “Department of Government Efficiency” (DOGE) (it is not a formal Cabinet department as it has not been established by law), all federal agencies have been ordered to put together a plan to reduce the federal workforce (starting with last month’s termination of thousands of probationary employees) by mid-March. The agencies must also draw up plans, by mid-April, to move agencies and programs out of Washington, DC to less expensive parts of the country. Agencies are also reviewing contracts they have with private sector service providers, with an eye to cancelling those that are not required by law or are otherwise not “mission critical.”

In one of his first moves after his January 20 inauguration, President Trump ordered federal agencies to halt rulemaking until the new Administration can review all pending proposed regulations. He also ordered a review of regulations finalized late in the Biden Administration.

On January 27, the Senate voted to confirm the nomination of Scott Bessent as the 79^th Secretary of the Treasury. The vote was 68 to 29. Sixteen Democrats joined with the Republicans to approve the nomination.

The outgoing 118^th Congress must fund U.S. discretionary spending by December 20. Issues in play in that effort include extension of authority and funding for the National Flood Insurance Program (NFIP), delay of the Corporate Transparency Act’s (ACT’s) Beneficial Ownership Information (BOI) rule, and possibly technical corrections to SECURE retirement savings law.

In 2025-2026, Republicans will control the White House (Trump/President), the Senate (53 to 47), and the House (220 to 215). But despite winning the trifecta, GOP lawmakers will confront significant challenges next year. They include a spiraling deficit that will make enactment of GOP priorities difficult, and deep divisions between ultra-conservative and more centrist Republicans.

A Texas district court has issued a temporary nationwide injunction blocking enforcement of the Corporate Transparency Act’s (CTA) requirement (the Beneficial Ownership Information, or BOI rule) that forces U.S. businesses to report the names and identifying information of their beneficial owners. Legislation to delay the reporting requirement is pending before Congress.

Federal deficits projected to grow to almost $2 trillion next year have triggered creation, by President-Elect Trump, of a Department of Government Efficiency (DOGE). DOGE’s goal is to cut federal spending by $2 trillion.

Sen. John Kennedy (R-LA) on December 3 introduced a bill to increase the amount a Flexible Spending Arrangement (FSA) owner can contribute to his/her FSA for dependent care expenses. While it is unlikely this bill will be enacted this year, its introduction tees up the issue for the incoming 119^th Congress.

Billionaire hedge fund manager and investor Scott Bessent is President-Elect Trump’s choice to head the Treasury Department. He says tariffs will be his top priority.

Robert F Kennedy Jr. is President-Elect Trump’s choice to be Secretary of the Department of Health and Human Services (HHS). A vaccines skeptic, Kennedy’s nomination is controversial, at least at this stage of the process.

President-Elect Trump has chosen Kevin Hassett, an economist currently working as a fellow at the Hoover Institute at Stanford University, to head the National Economic Council (NEC). The NEC works closely with the Treasury Department as a hands-on policy-making team.

President Biden’s March 7 State of the Union (SOTU) speech teed up a raft of issues important to NAIFA members and their clients. These are issues that will shape the pre-November election campaigns and the Congressional agenda for both 2024 and 2025.

The Department of Labor’s (DOL’s) proposed rule raising the salary threshold for the exemption for white-collar workers from minimum wage and overtime rules has gone to the White House (the Office of Information and Regulatory Affairs, or OIRA) for final review. OIRA review is the last step prior to finalization of the proposed rule.

The Senate Health, Education, Labor, and Pensions (HELP) Committee held a hearing on February 28 to examine how to increase retirement financial security through defined benefit (DB) plans, defined contribution (DC) plans, and Social Security. There was considerable focus on whether the Social Security wage base disproportionately taxes income that makes up the base of Social Security benefits. For example, one witness noted that when Social Security started, the wage base for lower income workers captured 2 percent of income whereas now it now captures 12.4 percent.

Business groups are fighting back against the Department of Labor’s (DOL’s) proposed rescission of the rules governing association health plans (AHPs). The groups say AHPs are a way to make affordable health insurance accessible to small businesses and self-employed individuals.

On February 28, Senate Republican Leader Sen. Mitch McConnell (R-KY) announced he would step down as leader of the Senate Republicans in November. The longest-serving Senate leader in U.S. history, Sen. McConnell said he would continue as the Senate’s Republican leader for the rest of this year (at least until the chamber’s GOP Senators elect a new leader after the November general elections). He also said he would finish his Senate term—that is until the end of 2026.

On January 2, NAIFA submitted comments to the Department of Labor (DOL) on its proposed fiduciary-only rule. The comments pointed out the harm the proposal would do to middle class retirement investors and to financial professionals who already put clients’ interests first. NAIFA recommended that the proposal be withdrawn.