Happy New Year! Congress is Back! What's On the Agenda
Overview
Happy New Year and welcome back! With 43 weeks until the 2026 midterms, Congress is entering a high-stakes election year juggling fiscal deadlines, major policy fights, and political pressure. Below is a snapshot of the issues we’re tracking closely.
Appropriations
Appropriations top the agenda. Congressional leaders have unveiled a three-bill “minibus” to avert a partial government shutdown when current funding expires on January 30.
The package reflects a bipartisan compromise:
Democrats protected funding for environmental programs, water infrastructure, scientific research, and climate resilience.
Republicans advanced energy-dominance priorities, regulatory relief, and modest spending reductions from FY2025 levels.
Leadership is signaling floor action as early as this week, underscoring a shared desire to avoid a shutdown while locking in a balanced funding deal.
Farm Bill
Congress passed a Farm Bill extension through September 2026, addressing crop insurance, reference prices, and nutrition programs.
Several titles remain unresolved—horticulture, pesticides, forestry, conservation, and livestock—and are likely to resurface as policy flashpoints this year. We’re closely monitoring potential vehicles for action.
Permitting Reform
In December, the House passed a bipartisan permitting reform package targeting NEPA, the Clean Water Act, and federal permitting processes.
Despite some Democratic support, Senate prospects are uncertain. House-level concessions to conservatives have narrowed the path to bipartisan agreement, leaving timing and scope unresolved.
Highway & Surface Transportation Reauthorization
Congress is expected to begin work on reauthorizing the Surface Transportation Bill this year. Key issues include:
Stabilizing the Highway Trust Fund.
Renewed debate over user fees, including proposed EV and hybrid vehicle fees previously floated—but excluded—from the One Big Beautiful Bill.
These funding debates are likely to resurface during reauthorization.
Member Retirements: A Shifting Landscape
An unusually large wave of retirements is reshaping Congress ahead of the midterms.
Senate: Eight Senators from both parties are retiring, including senior leaders with deep influence over appropriations, energy, infrastructure, and judiciary policy. Their departures will significantly affect committee leadership, institutional knowledge, and bipartisan deal-making.
House: Dozens of House members—many with current or former committee leadership roles—have announced plans to retire. The volume of open seats increases uncertainty about policy continuity and raises the likelihood of shifts driven by new regional and ideological dynamics.
Summary
Congress is prioritizing stability early in an election year.
Energy, water, environmental, and infrastructure policy remain central to FY2026 negotiations.
Leadership turnover is accelerating and could reshape committee priorities.
Major policy debates—appropriations, permitting reform, the Farm Bill, and transportation funding—remain unresolved and will move quickly.
KR Public Affairs will continue to track developments and provide strategic insight as the year unfolds.
