BRGR 2026 Congressional Outlook
Blank Rome Government Relations LLC (“BRGR”) is closely monitoring a range of critical policy issues that will shape the legislative and regulatory landscape as 2026 begins. It is important to note that Congress is facing a compressed calendar as lawmakers juggle major priorities alongside campaigning for the November elections. Below are just a few of the key issues BRGR is tracking for our clients.
Appropriations
Government funding is set to expire at the end of January, and lawmakers are working to finalize the six remaining Fiscal Year 2026 (“FY26”) appropriations bills. The Senate passed a three-bill “minibus” on January 15 covering Commerce-Justice-Science, Energy and Water, and Interior-Environment sending it to President Trump’s desk, where it is expected to be signed into law. The House also passed the Financial Services and National Security-State spending bills in a package on January 14, the Senate is expected to take up the measure when it returns from its recess.
Appropriators now only have four bills left to pass through both chambers: Defense, Labor-Health and Human Services-Education, Transportation-Housing and Urban Development, and Homeland Security, which the House Appropriations Committee released the text for in a “minibus” package on January 19. Despite multiple points of contention over the bills, House lawmakers are confident they will pass the package of bills this week. The Senate is then expected to pass these bills when they return from recess next week, thereby avoiding another federal government shutdown.
Looking ahead, FY26 funding will expire on September 30, meaning lawmakers will have to pass all 12 FY27 appropriations bills by then or will have to rely on a continuing resolution (“CR”), which keeps the government funding at current levels and allows lawmakers more time to pass the new set of funding bills. If history is any indication, they will likely need the CR option to give themselves more time to pass the appropriations bills during the “Lame Duck” session after the midterm elections.
Surface Transportation Reauthorization
The Infrastructure Investment and Jobs Act expires on September 30, requiring Congress to pass a new five-year surface transportation authorization bill. This legislation authorizes, provides funding, and sets national priorities for highways, bridges, transit, intermodal, and rail systems, guiding how federal dollars are allocated for infrastructure and safety. House Transportation Committee leaders have said they aim to mark up a new bill in March and move it through the chamber by mid-spring, then it will head to the Senate.
The reauthorization bill could also serve as a vehicle for permitting reform, a priority for energy developers and lawmakers seeking to streamline project approvals. Lawmakers were making progress last Congress on a bipartisan plan for including permitting reform in the bill, but Democrats in the Senate cut off negotiations after the Trump administration halted leases for five large-scale offshore wind projects currently under construction in the United States, citing national security concerns. Senator Sheldon Whitehouse, ranking member on the Environment and Public Works Committee, said the administration’s funding cuts and project cancellations could kill any incentive for Democrats to come to the table.
Budget Reconciliation 2.0
Republicans are exploring a second budget reconciliation package this year following last year’s sweeping “One Big Beautiful Bill Act” (“H.R.1”). The budget reconciliation process allows the Senate to pass budget and tax measures with a simple majority and bypass the Senate’s normal 60-vote requirement.
The Republican Study Committee, the largest caucus of conservatives in the House, unveiled a framework that includes $1.6 trillion in tax and spending cuts focused on housing, healthcare, and energy production. Despite the push from rank-and-file Republications, GOP leadership remains divided on whether to pursue reconciliation in an election year, citing a narrow House majority and lack of consensus on key provisions.
Tariff Legislation
There is a possibility that Congress will face pressure to weigh in on the Trump administration’s tariffs this month if the U.S. Supreme Court (“SCOTUS”) does not issue a ruling on the pending legal challenge regarding the president’s authority to impose tariffs under the International Emergency Economic Powers Act (“IEEPA”). As of today, SCOTUS has not acted on the case, making it unlikely that a decision will be issued before the Court adjourns for its four‑week recess next week.
The congressional resolution preventing challenges to the administration’s emergency declarations, which serve as the legal basis for many of the imposed duties, is set to expire on January 31. Extending this resolution may prove difficult for Republicans, who narrowly passed it in September by a 213–211 vote. Their margin has only tightened since then, further complicating prospects for renewal.
National Defense Authorization Act
The process of putting together the National Defense Authorization Act (“NDAA”) for fiscal year 2027 (“FY27”) has already begun, with lawmakers hoping to pass the legislation by the end of December. The massive bill authorizes funding, policies, and programs for the Department of Defense (“DoD”) and other defense-related activities.
President Trump has proposed a $1.5 trillion defense budget aimed at accelerating shipbuilding, modernizing arsenals, and investing in advanced technologies. GOP Armed Services Committee leaders in both chambers have expressed strong support for President Trump’s proposal, and hearings on the legislation are expected to begin soon. Lawmakers have also already begun opening portals for constituent input on the FY27 bill as the process moves forward.
Title 35 serves as the maritime title of the National Defense Authorization Act (“NDAA”) and may be used in the FY27 bill as the placeholder legislative vehicle for the bipartisan Shipbuilding and Harbor Infrastructure for Prosperity and Security (“SHIPS”) Act, which we are monitoring closely. The SHIPS Act aims to change the trajectory of U.S. shipbuilding by supporting a fleet of financially competitive U.S.-flagged vessels and investing in domestic shipyards to help address the U.S. Navy’s shipbuilding challenges. The legislation generally aligns with the administration’s initiative to revitalize the U.S. maritime and shipbuilding industries.
Water Resources Development Act
Congress typically reauthorizes the Water Resources Development Act (“WRDA”) every two years to direct the Army Corps of Engineers’ work on in-water infrastructure, dredging, flood control, aids to navigation, and environmental restoration. While historically bipartisan, negotiations could be complicated by the administration’s recent threat to pause $11 billion in water projects in Democratic-led states. Reauthorization is expected to become a priority later this year.
Other Key Deadlines
- April 20: Foreign Intelligence Surveillance Act (“FISA”) Section 702 authorities expire.
- July 1: Formal review of the United States-Mexico-Canada (“USMCA”) trade agreement.
- September 30: Farm Bill programs begin to expire.