FCA Legislative Update (Week of 11-13-26) 

This Week in Congress

Congress returns to Washington this week for a five-week lame-duck session with major legislative priorities still unresolved and a dramatically changed political landscape following last week’s elections. With Democrats winning control of both the House and Senate beginning in January, attention is focused on what the current Republican-controlled Congress can accomplish before the transition of power. Key issues include government funding ahead of the December 11 deadline, completion of the FY2027 National Defense Authorization Act (NDAA), and the possibility of a final budget reconciliation package. 

Negotiations will be shaped by both limited time and shifting political dynamics, making a short-term funding extension increasingly likely. In addition to spending and defense measures, lawmakers hope to address priorities such as the Farm Bill, health care provisions, surface transportation legislation, and pending judicial nominations before adjourning for the year. The outcome of the lame-duck session will determine how much unfinished business is left for the incoming Democratic majorities.

 

They’re Back: The Government Needs Funded

Congress is back and their most immediate challenge is keeping the federal government funded. The current continuing resolution expires December 11, and none of the 12 annual appropriations bills for FY2027 have been enacted. Appropriators had hoped to complete the spending bills during the lame-duck session, but Democrats’ sweeping midterm victories could complicate those efforts. With Democrats preparing to assume control of both chambers in January, they are expected to push for tighter restrictions on President Trump’s spending authority, changes to defense and immigration funding, and increased investments in domestic programs. 

The ongoing war with Iran and demands to restore enhanced Affordable Care Act (ACA) premium subsidies could further complicate negotiations. Given the limited time remaining and the growing political divide, another short-term continuing resolution is increasingly likely, potentially pushing major spending decisions into the next Congress. 

Republicans are also considering one final budget reconciliation package before Democrats take control of Congress in January. Increasing defense spending is among the leading priorities. However, Republicans remain divided over how to pay for additional spending, and leadership could face difficulty securing the votes necessary for passage. With narrow majorities, combined with several defeated or retiring lawmakers potentially unwilling to participate in the final weeks of the session, the prospects for another reconciliation package remain uncertain. 

Congress will also attempt to complete the FY2027 National Defense Authorization Act (NDAA), one of the major legislative measures that typically commands bipartisan support. Negotiations will focus on defense spending, military readiness, national security priorities, and other policy provisions before the end of the year.

 

Midterm Election Update

Democrats have secured control of both chambers of Congress in a sweeping midterm election victory, fundamentally reshaping the political landscape in Washington and setting the stage for a divided government as Republicans retain control of the White House. 

House of Representatives: Democrats have secured control of the House, with the latest tally showing 255 Democrats and 169 Republicans elected. Approximately 11 races remain unresolved, but Democrats have established a commanding majority that will give them control of the legislative agenda, committee leadership, and oversight responsibilities. 

U.S. Senate: Democrats have secured at least 55 seats, compared with 44 Republicans, with one race remaining uncalled in Alaska. Alaska Democrat Mary Peltola is challenging Republican incumbent Sen. Dan Sullivan and currently holds a narrow lead. If neither candidate receives more than 50% of the first-choice vote, ranked-choice tabulation will determine the winner. The final tabulation is scheduled for November 18.

 

Let the Congressional Leadership Battles Begin

With Democrats preparing to take control of both chambers of Congress in January, lawmakers are beginning the process of selecting their leadership teams for the 120th Congress. The internal party elections, scheduled over the next several weeks, will determine who sets the legislative agenda, directs committee priorities, and leads negotiations with the Trump administration. The leadership contests are particularly significant following the Democrats’ sweeping midterm victories, which will bring a change in congressional control, new committee leadership, and a potentially different approach to federal spending and oversight. 

Congressional Leadership Elections: 

November 10 – House and Senate Republicans – Republicans elected their leadership teams as they prepare to move into the congressional minority. The House leadership contest was quick and appeared relatively pain free as its members determined Jim Jordan (R-OH) was the right person for the time. In the Senate, Sen. John Thune (R-SD) retained the top Republican leadership position. Though there was much discussion to delay this vote, Republicans pushed forward with their elections as Thune had no challenger for the role.

November 18–19 – House Democrats – House Democrats will hold their leadership elections as they prepare to assume control of the chamber. Minority Leader Hakeem Jeffries (D-NY) is widely expected to become Speaker of the House when the new Congress convenes, while Rep. Katherine Clark (D-MA) is expected to serve as majority leader. Their leadership team will play a central role in establishing the Democratic legislative agenda, determining committee priorities, and managing the party’s relationship with the Republican administration.

Early December – Senate Democrats – Senate Democrats will elect their leadership team as they prepare to take control of the chamber. Several incoming Democratic senators have called for new leadership, setting up what could become a contentious caucus election. Sen. Chuck Schumer (D-NY) is seeking to retain his position as majority leader, but his reelection is not assured as Sen. Chris Van Hollen (D-MD) has thrown his hat in the ring as well. The outcome will be particularly important in determining how Democrats approach legislation, nominations, oversight, and negotiations with the White House.

January 3, 2027 – Election of the Speaker – The House will formally elect its Speaker when the 120th Congress convenes on January 3, 2027. Although Jeffries is expected to secure the position, the formal vote will mark the official transition of House leadership and the beginning of the new congressional session.

 

Key Changes to Appropriations Committees’ Leadership 

Beyond party leadership, several important committee assignments are beginning to take shape. Of particular significance are the anticipated changes in leadership on the House and Senate Appropriations Committees, which oversee federal discretionary spending and play a critical role in determining agency funding and program priorities.

House Appropriations:

Rep. Rosa DeLauro Seeks Chairmanship – Rep. Rosa DeLauro (D-CT) has formally announced her intention to become Chair of the House Appropriations Committee. In a letter to colleagues, DeLauro outlined an agenda focused on increasing federal investments in health care, education, housing, scientific research, and other priorities affecting working families. She also pledged to expand Democratic Community Project Funding, commonly known as earmarks. Her proposals include seeking to claw back billions of dollars from Border Patrol, Immigration and Customs Enforcement (ICE), and the Pentagon; challenging what she characterized as illegal federal funding freezes; and incorporating the anti-poverty “10-20-30 Plan” across appropriations bills. DeLauro’s priorities offer an early indication of how Democrats may approach federal spending when they assume control of the House Appropriations Committee.

Senate Appropriations: 

Sen. Lisa Murkowski Positioned for Top Republican Role – Sen. Lisa Murkowski (R-AK) has confirmed that, following Sen. Susan Collins’ defeat, she is positioned to assume a more senior leadership role on the Senate Appropriations Committee. Murkowski also holds the most senior Republican position on the Senate Health, Education, Labor, and Pensions (HELP) Committee following the departure of Chairman Bill Cassidy. Although her seniority could allow her to pursue the top Republican position on HELP, her public statements strongly suggest she intends to assume the Appropriations Committee role as the panel’s ranking Republican. 

Sen. Josh Hawley – If Murkowski takes the Appropriations position, Sen. Josh Hawley (R-MO) is emerging as a leading contender to become the ranking Republican on the HELP Committee. These committee leadership decisions will be consequential. Appropriations will be at the center of negotiations over federal spending, while HELP will oversee major policy areas involving health care, education, labor, workforce development, and retirement security.

 

First Week of Lame-Duck Session was… Lame

There was much talk of a strong legislative finish to 2026. There was talk of working “around the clock” buy maybe they were talking about next week, as the House went home for the weekend by 11 AM on Thursday and Senators were out by 3 PM.