With the Christmas recess over, Congress is set to return in January with plenty of unfinished business that could shape the 2026 political landscape.
The short-term financing bill, which ended November's historic government shutdown expires on January 30th. Lawmakers have yet to implement health care reform following the new law. public attention on affordability in the GOP-controlled Congress fastening for 2026 medium term elections.
“When I became Majority Leader, I made it very clear that I intended to fund the government through the regular order of consideration of appropriations bills, and not through an omnibus or a long-term plan. [continuing resolution]“The regular decision-making process gives senators from both parties every opportunity to make their voices and the voices of their constituents heard. That's why I'm disappointed that we won't move on to our second round of appropriations bills tonight. Republicans were ready to act. But, unfortunately, my Democratic colleagues are not there yet. I hope they get there.”
WASHINGTON, DC – DECEMBER 3: Senate Majority Leader John Thune (R-SD) speaks with reporters outside his office at the U.S. Capitol Building on December 3, 2025 in Washington, DC. Thune answered questions about Republican Matt Van Epps' victory in the Tennessee House special election and other topics. (Photo by Andrew Harnick/Getty Images)
The Senate, which faces a Jan. 30 funding deadline, is preparing package of five funding bills that would move Congress closer to completing the annual budget process.
This package was the subject of numerous negotiations before the Senate adjourned on December 18. Democrats called for votes on dozens of amendments that week, and by the time Congress adjourned, the list had been whittled down to a set of 15 amendments, according to a report by The Hill.
Once the Senate approves the package, it will be sent to the House of Representatives, and if the lower chamber passes, the measure will go to President Donald Trump for confirmation. As a result, only a few departments will remain funded until January 30. These bills, or another stopgap spending bill, must be passed within 24 days—and even fewer legislative days—to avoid another government shutdown.
“Democrats want to complete our work to complete the bipartisan appropriations process. Our goal is a bipartisan bill that will fund the government through fiscal year 2026,” Senate Minority Leader Chuck Schumer said in a Dec. 18 speech in the upper chamber. “We will still need some time to work through our amendments so that we can finish the minibus in January… It's not easy. Obstacles always remain. Neither side is going to get everything they want.” (CONNECTED: Chuck Schumer refuses to rule out the possibility of another government shutdown)
WASHINGTON, DC – DECEMBER 3: (LR) U.S. Senate Minority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY) speak to the media during a press conference at the U.S. Capitol Building on December 3, 2025 in Washington, DC. Democratic leaders held a news conference to discuss health care issues. (Photo by Anna Moneymaker/Getty Images)
The appropriations process has highlighted the central issue of the current Congress: health care reform. November 12 Trump signed short-term funding package approved by both houses of Congress to reopen the government. Confrontation over expanded Obamacare tax breaks could escalate expires December 31 triggered a 43-day shutdown, the longest in U.S. history. — at the same time, Democrats voted 14 times in a row for its extension.
The House of Representatives passed reform plan The Miller-Meeks legislation, if approved by the Senate, would try to reduce costs by expanding association health plans and targeting pharmacy benefit managers. The bill, which does not extend the tax cuts, is the only legislation approved by both chambers of Congress related to post-shutdown health care reform.
On the same day A. petition led by House Minority Leader Hakeem Jeffries, collected a majority of signatures, forcing a vote to extend Obamacare's expanded tax cuts for three years. That petition, however, had to mature within seven legislative days, allowing Speaker Mike Johnson to delay the vote until after returning in the new year. (CONNECTED: Poll shows 7 in 10 Americans say the health care system has serious problems)
WASHINGTON, DC – DECEMBER 9: Senate Majority Leader John Thune (R-WY) (Center), joined by Senate Majority Leader John Barrasso (R-WY) (L) and U.S. Senator James Lankford (R-OK), speaks to reporters following the Senate Political Lunch at the Capitol on December 9, 2025 in Washington, DC. Senators discussed an expected vote this week on a Democratic proposal to extend expiring Obamacare subsidies. (Photo by Heather Deal/Getty Images)
In the Senate Republican Conference, a cascade of competing proposals circulated throughout November and December. The only proposal of the Republican Party, joint efforts Louisiana Senator Bill Cassidy and Idaho Senator Mike Crapo appeared before the Senate on December 11, the same day Democrats unveiled a deal to extend the Affordable Care Act (ACA) by three years. Both proposals were shot down.
“Due to Republicans' complete inaction, enormous damage has already been done to health care, and nothing we do after January 1 will undo much of that damage,” Schumer said Dec. 18. “As I said earlier, the toothpaste is out of the tube. However you want to say it, the point is this: Because of the Republicans, it is now unfortunately impossible to prevent people from having to pay hundreds, if not thousands more in premiums next year. This is happening starting January 1st.”
“Even if we can find a way to stop the bleeding next year, that's a big deal because the Republicans are still in the doldrums and have no plan themselves,” Schumer said. “For too many people, it will be too late because Republicans decided to let these ACA tax breaks expire. They had an easy opportunity to join us in our three-year clean extension of ACA credits, and they refused.”
With a government funding deadline looming and health care premiums set to rise, both sides return to Washington in January knowing that the next few weeks could shape not only federal politics but also the political battleground of 2026.
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