As Congress appears on a glide path to approving the remaining appropriations bills by the January 30 deadline with some trade and health care add-ons, there is continued speculation about how tax and other outstanding priorities could move sometime this year. There have been indications that House Republicans, at least, could pursue a health care-focused second budget reconciliation bill, despite Ways and Means Committee Chairman Jason Smith (R-MO) expressing skepticism it can pass. His Senate counterpart, Finance Committee Chair Mike Crapo (R-ID), is not enthused about the approach. "I prefer that we not got through reconciliation unless we have to," he said in a January 20 Bloomberg Daily Tax Report story.

Asked during a January 22 Fox interview whether he wants to see another reconciliation package, President Trump said, "Well, I think we have a problem, because I think we're going to probably end up in another Democrat shutdown, because that's the only way … The shutdown cost us a lot, and I think they'll probably do it again. That's my feeling. We'll see what happens."

On whether he will release a budget, the President said, "We're going to have a budget … We're negotiating the budget right now. We're negotiating healthcare. I don't want the insurance companies to get the money. I want the money to be paid directly back to the people, and when it comes back to the people — by the way, everyone is in love with it."

House Appropriations Committee Chairman Tom Cole (R-OK) was quoted this week as saying he doesn't expect an Administration budget until March, "I don't think it'll be in February from my discussions with" Office of Management and Budget Director Russell Vought, he said.

Appropriations — The House approved the Consolidated Appropriations Act, 2026, in two votes and the chamber is now out for a planned recess next week. The Defense, Labor-Health and Human Services-Education, and Transportation-Housing and Urban Development appropriations bills were approved 341-88. The Homeland Security measure passed 220-207. Passage followed objections from some midwestern members, including Ways and Means members Reps. Michelle Fischbach (R-MN) and Adrian Smith (R-NE), about an issue involving E15 ethanol biofuel.

The package includes an extension of two expired trade programs, the African Growth and Opportunity Act and the Haiti Economic Lift Program, through 2026. It also would extend several health care programs, including Medicare telehealth flexibilities. The package includes several dozen health care program extensions and policy riders, including some that were included in the failed December 2024 bipartisan package. Health care extenders and provisions would impact providers, payers, pharmaceutical companies, pharmacy benefit managers (PBMs) and other health care industry stakeholders.

The Senate is planning to return to session on Monday — weather permitting — with five days to pass the spending bills before the January 30 deadline for government funding under the remaining appropriations bills. The Senate must additionally approve the Financial Services and General Government and National Security-State Department bill, which leaders are planning to combine with the new four-bill package.

Cryptocurrency — House Ways and Means Committee Chairman Jason Smith (R-MO) said January 21 he hopes to hold a committee markup "very soon" on crypto tax legislation, Politico reported. "I'm not going to put a timeline on it, but we have been doing policy briefings with our members for months now," Smith said.

In December, Ways and Means members Reps. Max Miller (R-OH) and Steven Horsford (D-NV) circulated a draft bill addressing issues including a de minimis rule, staking, and wash sales. The draft bill includes a provision "intended to establish a per-transaction de minimis threshold of $200, consistent with the foreign currency transaction exception under section 988, to eliminate low-value gain recognition arising from routine consumer payment use of regulated payment stablecoins."

Last week, Senate Banking Committee Chairman Tim Scott (R-SC) canceled a markup of landmark cryptocurrency market structure legislation that had been set for Thursday (January 14), after a key industry stakeholder dropped his support for the latest version of the bill.

The Politico report on the tax piece cited Rep. Horsford as saying tax writers are waiting to see how crypto market structure legislation will fare in the Senate. "Obviously, we're waiting for the Senate to act on the regulatory bill, and we'll see as that proceeds, where this fits in the schedule," he said. "We're trying to make it bipartisan and complementary."

Financial services - The House Financial Services Committee hearing on Wednesday, January 21, "Oversight of the Department of Housing and Urban Development and the Federal Housing Administration" featured as the only witness Housing and Urban Development (HUD) Secretary Scott Turner. The hearing often highlighted a partisan dispute over the Trump Administration's housing agenda, with Democrats focusing heavily on HUD staffing cuts, civil-rights enforcement, homelessness policy and disaster aid, while Republicans emphasized deregulation, supply constraints and cutting waste.

Tax — An EY Tax Alert, "IRS issues interim guidance on bonus depreciation," is available here.

Today (January 23) at 12:00 p.m. ET is the EY Center for Tax Policy monthly update (formerly known as Tax in a time of transition). Register.