Congress Looks Ahead to a Busy Fall

Congress has adjourned for the month of August. When lawmakers return after Labor Day, they have a long and fraught to-do list for the remainder of the year.

Fund the Government

This spring, Congress passed a continuing resolution (CR) to maintain funding for the government at 2024 levels. That authority expires on September 30. To avert a government shutdown, Congress must pass a funding package or another CR. Either option would require the support of 60 Senators to advance. In the Senate, Republicans have a 53-seat majority, giving Democrats a seat at the bargaining table.

Unlike many past funding battles, however, Congress recently increased the federal debt ceiling in the One Big Beautiful Bill Act, which was signed into law on July 4. This eliminates the possibility of the U.S. Government defaulting on its debt anytime soon.

Extend the National Flood Insurance Program (NFIP)

The NFIP provides flood insurance to businesses in high-risk areas. Absent Congressional action, the negative impacts ripple through the housing, insurance and broader capital markets (not to mention local governments). Congress has enacted 33 short-term extensions to the NFIP since 2017, and Congress is again expected to act in time to stave off such dramatic consequences.

Pass Another Tax Bill?

The chairmen of the House and Senate tax-writing committees have both expressed interest in pursuing another tax bill. It’s still too early to know the contours of any package. Democratic (and many Republican) lawmakers would like to extend the enhanced Affordable Care Act (ACA) premium tax credits that are set to expire at the end of 2025. The credit helps low-income households purchase health insurance plans available in the ACA exchanges.

It is also worth noting that Republicans have two more opportunities between now and the end of 2026 to use the reconciliation process to pass Republican priorities into law without Democratic votes.