President Trump delivered a speech in Michigan January 13 and cited three action items related to recent proposals:

• "Next week, I'm going to provide much more detail about our housing policies so that every American who wants to own a home will be able to afford one … This will include a ban on large institutional investors buying up single-family homes all over the country … I've also announced that the U.S. government is purchasing $200 billion dollars of mortgage bonds to bring down mortgage rates."
• "I proudly called for credit card companies to cap interest rates at 10% for one year because they're getting 28% and 30% and 30% — and it's unfair. The rates are way too high."
• "To provide further relief to hardworking Americans, we will also be confronting one of the biggest factors in driving up prices — the monstrosity known as the Unaffordable Care Act … Later this week, I'll announce our healthcare affordability framework that will reduce premiums for millions."

The Senate is scheduled to be in recess next week, beginning January 19. The House, in turn, is scheduled to be out of session the following week, ending on January 30 (after which a portion of government funding will run out absent further congressional action).

The announcement of a forthcoming health proposal from the President and the congressional recess schedule scrambles the outlook for a response to the expiration of enhanced Affordable Care Act (ACA) premium tax credits (PTCs) at the end of December. Senators including Susan Collins (R-ME), Bernie Moreno (R-OH), and Angus King (I-ME), who are working on a solution that may include a two-year extension — potentially with an extended open enrollment deadline, an income limit, and a minimum payment requirement — January 13 provided a range of timelines for releasing a proposal, from the end of the week to the end of the month.

There also remains the option that Republicans could pursue a second budget reconciliation bill with a focus on health care, but GOP members have been split on whether that is necessary and feasible. House Ways and Means Committee Chairman Jason Smith (R-MO) said in a Fox Business News interview January 13, "I would absolutely love to do a second reconciliation package. I just think that it's extremely, extremely difficult, Maria, because we're at 218 Republicans in the House, and that is, everyone is here, and no one is in the hospital. So, that's quite — quite difficult. I just don't see it passing — to be honest with you."

The Republican Study Committee of members January 13 outlined a plan for a reconciliation bill that would address issues like health care, housing reforms, and energy deregulation, The Hill reported.

Asked whether reconciliation could be used to enact a Health Savings Account-based (HSA) bill or other Republican health legislation, Senate Majority Leader John Thune (R-SD) said January 13, "We reserve that option. We obviously have legislative vehicles available to us that could be used for reconciliation. But as I've said before, you have to have a reason to do it … Clearly, we had a huge reason and rationale for doing it last year. But whether or not that is something that we do this year, it's a tool in our toolbox. It's an option."

Congress — The narrow majority, member absences, and disagreements between Republicans caused an education-related bill to fail January 13 and two other bills to be pulled from consideration, foreshadowing additional difficulty for Republicans in moving legislation on the floor. Politico reported this morning, "Republicans are stuck with an essentially unworkable margin that could derail not only their government funding plans but their entire legislative agenda."

Multiple press stories have checked in on the narrow House majority and the difficulties it poses. With the resignation of Rep. Marjorie Taylor Greene (R-GA) and passing of Rep. Doug LaMalfa (R-CA), the House ratio is 218 Republicans to 213 Democrats. That ratio puts the Republican majority at two seats for passing legislation, or effectively one seat given that Rep. Thomas Massie (R-KY) has consistently voted in opposition to GOP leadership in this Congress. The Georgia special election is set for March 10, and Democrats will gain an additional seat in a January 31 Texas runoff election that is between two Democrats.

A Washington Post analysis from the weekend, "A majority in name only? House Republicans are barely hanging on," noted, "A historically close 2024 election left the two sides almost tied at the outset of the 119th Congress last January, but other events have left House Speaker Mike Johnson (R-Louisiana) often holding the gavel in almost symbolic fashion on some days." The analysis said, "Unlike the Senate, the Constitution prohibits temporary appointments to replace members of the House, and each state has its own rules for timing special elections. Replacing members can take months."

"Speaker Mike Johnson is now able to afford just two defections on any party-line vote if all members are present — and in an election year, they seldom are. In the coming weeks, his situation is expected to become worse, whittling down the margin to a single vote," a January 13 New York Times story, "The House Republican Majority Is Down to Almost Nothing," said. "It is the continuation of a dynamic that has plagued House Republicans since President Trump took office in 2025: A majority so small that it gives outsize power to any one member who wants to buck the party. It makes governing difficult, if not impossible."

Appropriations — By voice vote January 13, the Senate cleared a second procedural step with respect to the House-passed Commerce, Justice, Science/Energy and Water Development/Interior and Environment appropriations package (H.R. 6938). Leader Thune filled the amendment tree — which in Senate parlance is a maneuver, as the Congressional Research Service (CRS) describes, employed by the Majority Leader "to prevent the offering of or voting on of non-germane amendments to try to speed consideration of a measure or to control the subject or sequence of amendments that may be offered" — and filed cloture.

The House could vote today on the Financial Services and General Government and National Security, Department of State, and Related Programs Appropriations Act, 2026, which includes funding for the Treasury Department and Internal Revenue Service (IRS). While Democratic support would be expected for the bill, Democrats received guidance from leaders to oppose the vote on the rule for consideration, meaning it could fail given the aforementioned issues with the narrow House majority. Department of Homeland Security (DHS) funding was not included in the package. The continuing resolution (CR) deal to end the shutdown included approval of the Military Construction-Veterans Affairs, Agriculture, and Legislative Branch appropriations bills.

The eight bills mentioned are traditionally regarded as the easiest for lawmakers to agree on, and beyond those are four more difficult bills. Punchbowl News reported January 13, "If appropriators can reach an agreement on DHS funding, the House could vote on the bill next week along with Labor-HHS, Defense and Transportation-HUD, House Appropriations Chair Tom Cole (R-Okla.) said. Otherwise, lawmakers will need to pass a CR."

Trade — The House January 12 approved two Ways and Means Committee trade measures:

• the "AGOA Extension Act" (H.R. 6500), to extend the African Growth and Opportunity Act (AGOA) retroactively from September 30, 2025, to the end of 2028, by a 340-54 vote
• the "Haiti Economic Lift Program Extension Act" (H.R. 6504) to extend the HOPE/HELP textile and apparel trade programs with Haiti retroactively from September 30, 2025, to the end of 2028, by a 345-45 vote

Both bills have bipartisan support and have been discussed for inclusion in any potential bipartisan tax/trade/health package that addresses tax extenders, US-Taiwan tax relief, and other issues, though there is the lingering question of whether a legislative vehicle will be available for such a package.

The January 13 House Ways and Means Trade Subcommittee hearing on "Maintaining American Innovation and Technology Leadership" was wide-ranging and touched on the absence of protections abroad for United States intellectual property (IP), and issues related to the United States-Mexico-Canada Agreement (USMCA), artificial intelligence (AI), and digital service taxes (DSTs).

Rep. Ron Estes (R-KS) said the proliferation of DSTs started in 2019 and the purpose of these taxes was to provide a benefit for other nations' firms over US innovators. While progress has been made, there is still work to be done, and concerns include France proposing to increase their DST and other nations proposing to enact DSTs or similar taxes, he said. With the recent OECD announcement of the Pillar Two side-by-side agreement, it is a hope that we can use this momentum of goodwill to resolve the DST issue permanently, Estes said — with Congress, the USTR, and Treasury using all the tools at their disposal to protect US businesses.

Tax — Kevin Salinger, Deputy Assistant Secretary for Tax Policy at the Treasury Department, said January 13 at the New York State Bar Association Tax Section's annual meeting that Treasury and the IRS plan to issue one more notice on the corporate alternative minimum tax (CAMT) before issuing a reproposed package of rules at the end of 2026, Tax Notes reported.

The staff of the Joint Committee on Taxation has compiled a list of Federal tax provisions that expired in 2025 or are scheduled to expire in the future.

On January 14, the House Ways and Means Committee is holding a legislative markup of the BARCODE Efficiency Act (H.R. 6956), requiring a scannable code on certain tax returns.

Retirement - On January 12, Senator Amy Klobuchar (D-MN) introduced S. 3615, to establish an exception for multiemployer plan participants to the requirements for automatic enrollment.