Congress Returns to Washington as Lawmakers Struggle to Find a Path Forward

After 43 days of a government shutdown—the longest in U.S. history—Congress has finally returned to Washington, D.C., just in time for the holidays.

President Trump signed a continuing resolution to fund the government at current levels through Jan. 30, 2026, temporarily averting further disruption but leaving many unresolved issues on the table.

While Democrats ultimately conceded to end the impasse, Republicans now face difficult choices over how to tackle rising healthcare costs and the looming expiration of the enhanced ACA subsidies at the end of the year. Leader Thune has promised a vote on the issue before December 31, but Republicans remain divided on whether to extend the subsidies or pursue an alternative plan. Some House Republicans are exploring broader healthcare reforms that could reduce costs without expanding Obamacare. Meanwhile, Democrats are signaling they won’t support other GOP health proposals unless the ACA credits are extended, setting up another battle on the Hill.

Meanwhile, the next funding fight is already taking shape. Congress approved a limited three-bill funding package to end the shutdown, but major disagreements remain over how to structure and fund the remaining FY2026 appropriations bills, with lawmakers still tens of billions of dollars apart on topline spending levels for defense and health programs. House Democrats are also pushing for stronger safeguards against future funding rescissions. With the January 30 deadline approaching, Congress is once again bracing for another high-stakes budget showdown.

Legislating will likely take a back seat to politics in 2026, as a contentious mid-term election is sure to capture the attention of lawmakers. A focus on measures such as surface transportation and apprenticeship reauthorization is expected, but progress on broader policy goals appears increasingly uncertain. Committee work has stalled, and bills are now significantly behind schedule. With limited floor time left before the election season consumes Washington, the lost productivity will be nearly impossible to recover. The extended shutdown has left Congress scrambling to catch up, proving that 2026 will be defined more by what doesn’t get done than by what does.

ABC continues its work defending the merit shop in the face of increased pressures from both sides of the aisle. While Congress races against the clock to regain lost ground, ABC remains steadfast in advancing policies that promote fair and open competition, workforce development and economic growth.

Source link