Congress returns from its summer recess in September facing a crowded agenda dominated by spending deadlines, expiring tax provisions, and bitter partisan divides.
The most urgent task is avoiding a government shutdown when current funding expires on Sept. 30. With little chance of passing all 12 appropriations bills in time, lawmakers are expected to rely on continuing resolutions to keep federal agencies running. House Republicans are pressing for steep cuts to non-defense discretionary programs, a stance Democrats firmly oppose, raising the risk of a shutdown.
At the same time, the Republican-controlled Congress is preparing to use budget reconciliation to advance tax and spending legislation without Democratic support in the Senate. A central fight involves the 2017 tax law: its individual tax cuts expire at the end of 2025. Republicans want to extend them across the board, while Democrats seek to preserve cuts only for households making under $400,000 a year. GOP proposals also target clean energy tax credits, expand border security measures, and scale back safety net programs.
Healthcare is another flashpoint. Enhanced Affordable Care Act subsidies, which help millions afford insurance, expire at year’s end. Without action, premiums could spike for many families. Medicare’s pandemic-era telehealth flexibilities are also set to lapse on Sept. 30, though a bipartisan bill seeks to make them permanent.
Beyond the budget and healthcare, lawmakers must pass the annual defense policy bill, the National Defense Authorization Act for fiscal 2026. A Senate committee hearing on reauthorizing NASA is scheduled for Sept. 3, with an eye toward maintaining U.S. leadership in space exploration.
Meanwhile, committees are preparing high-profile investigations into corporate ESG policies, data privacy, cybersecurity, and U.S.-China trade. Social policy fights are also expected, with debates over immigration, reproductive rights, and diversity initiatives likely to inflame partisan divisions.
Source: Politico