In addition, Congress will be aiming to make progress on enacting a dozen annual spending bills that fund federal agencies and programs. 31 deadline for reauthorizing the Federal Aviation Administration. House Speaker Mike Johnson, a Louisiana Republican, told the New York Post that he favors changes to protect Americans' privacy before reauthorizing it, saying it's important but it 'has been abused in some cases.' 'We have long argued that the overall legislative environment wouldbe too toxic to get many of these items done, even beyond the difficulties in reaching deals on these topics in isolation.'Īnother defense-related matter for Congress is reauthorizing Section 702 of the Foreign Intelligence Surveillance Act ahead of a Dec.

'We have generally been very skeptical of most of the possibilities in this space, including cannabis banking, energy permitting reform, digital asset rules, 'Durbin 2.0' interchange rules, obesity drug coverage, TikTok restrictions, and tough PBM reforms (i.e. Dick Durbin's proposals for credit-card fees or measures targeting pharmacy-benefit managers or cryptocurrencies (BTCUSD). And he's downbeat on the prospects for other issues that aren't must-pass items, such as Illinois Democratic Sen. 19 to prevent a shutdown, Marcus reckons. The tax package probably wouldn't get attached to an end-of-year vehicle like the annual defense bill, but rather to the funding bill that'll be needed by Jan. It would have the 'classic shape of a bipartisan congressional deal, where each side gets something they want, no one does anything painful, and the dispute is all about how much each side gets,' he wrote.

The chances for such a deal are less than 50%, 'but they are rising,' said Tobin Marcus, head of politics and policy at Wolfe Research, in a note. Meanwhile, another analyst sees potential for a year-end tax deal, in which a partial revival of an expanded child tax credit would get paired with tax breaks for businesses - including a key one for research and development expenses that big companies pushed for unsuccessfully a year ago. Related: Top Biden officials are pushing Democrats to accept a deal on immigration 'This is defense sector ITA positive,' he added. Democrats will end up making concessions on border policy, and they'll tell their base they were forced to do so by Republicans in order to secure aid for Israel and Ukraine, Haines said. One veteran Washington analyst expects this approach probably will work, though it'll take much of December to hammer out the details.įull funding for Israel, Ukraine and border security is '75% likely by Christmas but not before,' said Terry Haines, founder of Pangaea Policy, in a note. southern border in the hope that it will bring more Republicans on board.

Biden is trying to sweeten his pitch for aid for Ukraine by mixing in $14 billion for securing the U.S. So that request is set to be subject to negotiations. Legislative environment looks 'too toxic' for some issues to get resolved, analyst saysīoth the House and Senate are due to get back to work this week after their Thanksgiving break, and lawmakers have a lot on their plates.Ī divided Washington put off the threat of a partial government shutdown until mid-January by enacting a short-term spending bill in mid-November, but the measure didn't address President Joe Biden's $106 billion funding request that includes wartime aid for Israel and Ukraine.

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