28 January 2026

What to expect in Washington (January 28)

A determining factor regarding prospects for a partial government shutdown after Friday, which neither party wants, is whether sufficient immigration-related reforms can be assured to compel enough Democrats to provide the votes to meet the 60-vote Senate threshold for the Homeland Security appropriations bill. That measure is part of a six-bill minibus that Republicans don't want to change because it would require a re-vote on the carefully crafted funding package in the House, which is in recess. Democrats are in favor of the remaining five bills: Defense, Labor-Health and Human Services-Education, Transportation-Housing and Urban Development, Financial Services and General Government, and National Security-State Department.

There were indications that some progress was being made toward a successful resolution. NBC News reported Senator Brian Schatz (D-HI) as saying, "Constructive conversations are happening. I think we should be able to land this." Senate Majority Leader John Thune (R-SD) was quoted as saying there is some uncertainty about the House passing another Homeland Security bill. A Senate test vote on the government funding bill is likely to be set for Thursday. In a Wall Street Journal story, Senator Chris Murphy (D-CT) "said conversations are focused on requiring judicial warrants; mandating body cameras and identification; and giving states the right to conduct their own investigations."

But it's unclear that legislative changes can be sidestepped and the appropriations package preserved as-is. "The Senate must not pass the DHS budget as currently written, and it must be reworked to rein in and overhaul ICE to ensure the public's safety," Democratic Leader Chuck Schumer (D-NY) said on the Senate floor January 27. "The fix should come from Congress … Republicans and Democrats must work together to make that happen."

Some Republicans chided Democratic leaders for threatening to upend the government funding deal. "When you make the statement that you will not vote for the Department of Homeland Security bill, you are saying that you are not going to fund FEMA, when we're in the Snowmageddon right now … " House Ways and Means Committee Chairman Jason Smith (R-MO) said in a January 27 Fox Business interview. "You're not going to fund TSA agents. You're not going to fund the Coast Guard."

Health care — A group of senators working on a proposal to address expired enhanced Affordable Care Act (ACA) premium tax credits (PTCs) — which could include a two-year extension with an extended open enrollment deadline, an income limit, and a minimum payment requirement — may have legislative text soon. Politico reported Senator Angus King (I-ME) as saying he expects the group to release bill text "hopefully in the next day or so." Other members were reported as not sharing that optimism, as the group was largely quiet since before last week's Senate recess and efforts were stalled over various sticking points.

Trade — Asked about the US-EU trade deal during a January 27 Fox Business interview, U.S. Trade Representative Jamieson Greer said, "that's actually back on track" — separate from Greenland talks — and "the trade deal talks are going forward in their silo with positive language from European leaders on the prospects of passing that bill soon." There were questions about the continued enactment of the US-EU trade framework last week and talk of suspending the work related to it, but then comments affirming the EU would proceed with consideration of the trade deal.

Further asked whether he is optimistic about the deal, Greer said, "We still have issues with digital services taxes with certain member states or pharmaceutical pricing practices with certain member states. So, there may be still areas of dispute. But, for that trade deal, the United States has modified its tariffs for Europe. It's given them a good deal, and we're looking forward to Europe finally passing their half of it."

POTUS — In remarks in Iowa January 27, President Trump highlighted the tax cuts under the "One Big Beautiful Bill Act" (OBBBA). "If congressional Democrats had their way, this year would right now be facing the largest tax hike. So, they wanted to give you — this is what I was running against, the largest tax hike in the history of our country," the President said. "I wanted to give you the largest tax cut in the history of our country." President Trump said he was appealing to voters to preserve GOP majorities in this year's midterm elections. "I'm here because I love Iowa but I'm here because we're starting to campaign to win the Midterms. We've got to win the Midterms. That means Senate. And it means House."

Congress — House Ways and Means Committee Vice Chairman Vern Buchanan (R-FL) announced his retirement January 27 after 20 years in Congress. "Every achievement worth doing began with listening to my constituents and fighting for their priorities. I came to Congress to solve problems, to fight for working families and to help ensure this country remains a place where opportunity is available to everyone willing to work for it," Rep. Buchanan said. "After 20 years of service, I believe it's the right time to pass the torch and begin a new chapter in my life."

Redistricting — Maryland's House was debating January 27 a new map that would redraw the district of Rep. Andy Harris (R-MD), and Governor Wes Moore (D) testified in support of the measure. A Virginia court was reported as blocking Democratic redistricting efforts in that state.

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Contact Information

For additional information concerning this Alert, please contact:

Washington Council Ernst & Young

Document ID: 2026-0299