Lawmakers are staring down what to do in the pre-election months remaining in 2026. Among the possibilities is an all-GOP budget bill that could include new tax cuts and/or revenue-raising tax hikes. A new retirement program and a possible change to capital gains tax rules might be among them.
President Trump has not signaled his domestic legislative priorities for the six months leading up to the November mid-term elections. That has left Congressional Republicans with the task of setting the priority agenda. They are looking at putting together another all-GOP budget (reconciliation) bill that (if it happens) will near certainly include a tax title.
Certain new tax cuts are under discussion, including the possibility of indexing for capital gains and creation of a new retirement savings program for individuals whose employers do not offer a retirement plan. Other ideas will also likely emerge.
This is by no means a done deal. Competition for limited resources for tax cuts is already fierce and will only increase as Republicans try to craft a voter-friendly reconciliation bill. Plus, with their majorities in both the House and Senate (one to three votes) paper-thin, getting the near GOP unanimity that will be needed to pass a bill will be a tall order.
Senate Majority Leader Sen. John Thune (R-SD) has requested from Senate committees ideas for provisions to include in a second all-GOP budget bill. House Budget Committee Chair Rep. Jodey Arrington (R-TX) is likewise collecting proposals for inclusion in a new reconciliation bill.
Timing is fluid, but Washington insiders believe a proposed package will have to come together within the next month or two in order to have any chance for making it through the budget process ahead of the mid-term elections.
Prospects: The need for almost unanimous Republican support, just about guaranteed Democratic opposition, and the fact that other pressing issues (Iran war, the need to fund the now shut down Department of Homeland Security agencies, and others) that are ahead of the potential for a reconciliation bill make this effort a heavy lift. There is a lot of skepticism on the Hill about whether it is doable. But the effort is underway and it could succeed.
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.