14 November 2025 What to expect in Washington (November 14) The record-breaking 43-day government shutdown is over after the House approved, and the President signed, November 12 a continuing resolution (CR) until January 30, 2026, and a minibus appropriations package comprising the Military Construction-Veterans Affairs, Agriculture (which includes the Food and Drug Administration), and Legislative Branch FY2026 spending bills. The House vote was 222-209, with six Democrats voting in favor: Henry Cuellar (D-TX), Don Davis (D-NC), Jared Golden (D-ME), Adam Gray (D-CA), Marie Gluesenkamp Perez (D-WA), and Tom Suozzi (D-NY). All represent districts won by President Trump in 2024, though Golden is retiring. Republicans Thomas Massie (R-KY) and Greg Steuebe (R-FL) voted against. The CR deal reached between a group of Democratic and Republican senators November 9, breaking the long impasse, included Majority Leader John Thune (R-SD) announcing, regarding legislation to extend enhanced Affordable Care Act (ACA) premium tax credits expiring at the end of 2025, that he is "committed to having that vote no later than the second week in December." There is already a focus on that upcoming vote. There could be competing Democratic and Republican proposals, both parties could consider some "guardrails" relative to the current credits like an income cap, and some Republicans led by Senate HELP Committee Chairman Bill Cassidy (R-LA) want a different approach to the credits altogether using a pre-funded Federal Flexible Spending Account. Whether a bipartisan compromise can be reached could determine if a potential ACA credits bill could be paired with other bipartisan issues, or whether Republicans may seek their own health bill. Senate Budget Committee Chairman Lindsey Graham (R-SC) is advocating for a second reconciliation bill to focus on health care issues, but Senate Finance Committee Chairman Mike Crapo (R-ID) is reportedly not yet on board with a new reconciliation bill and is seeking a bipartisan health care plan. The deal to end the government shutdown also creates another deadline and legislative opportunity, though not in the form of the traditional yearend appropriations bills that can carry other priorities. Congress now faces a January 30 deadline to pass the remaining nine annual appropriations bills for FY 2026 (or another CR/minibus), but members remain divided over topline spending numbers and potential add-ons. Health care will be the focus of hearings in the tax-writing committees next week. The Senate Finance Committee has scheduled a hearing, "The Rising Cost of Health Care: Considering Meaningful Solutions for all Americans," for Wednesday, November 19 at 10 a.m. The House Ways and Means Health Subcommittee has scheduled a hearing, "Modernizing Care Coordination to Prevent and Treat Chronic Disease," for Wednesday, November 19 at 2 p.m. IRS — The Internal Revenue Service announced November 13 that the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025. The limit on annual contributions to an IRA is increased to $7,500 from $7,000. An EY Tax Alert is available here. Elections — There is attention on how last week's off-year elections may provide indications of how the 2026 midterm elections will play out, when control of the House will be up for grabs and Republican unified government will be on the line, potentially resulting in divided government that would prevent the use of budget reconciliation and require the parties to compromise on essentially all legislation. Democrats Abigail Spanberger, a former House member, and Mikie Sherrill (D-NJ), a current House member, won the Virginia and New Jersey gubernatorial contests November 4, respectively. A story in the November 12 Wall Street Journal said: "Spanberger won 70%, and sometimes even more than 80%, of the vote in wealthy and populous communities to the north, racking up hundreds of thousands of votes that powered her nearly 15-point victory. But here in Caroline County [near Richmond Virginia], she fought to a near tie, losing by a mere 13 votes, preliminary results showed. The political terrain of next year's battle for the House looks most like Caroline County, with a median household income of about $86,000, census data show — just ahead of about $79,000 nationwide." The story said there are currently 26 competitive House districts, based on the Cook Political Report, more than half of which are in the middle of the income spectrum, ranging from $70,000 to $99,000 in median household income.
Today, November 14, is the EY Center for Tax Policy monthly update webcast, "Tax in a Time of Transition." Register here.
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