This week (February 2-6)

Congress: The House and Senate are in session.

Las week (January 26-30)

Government funding: The Senate January 30 approved an appropriations "minibus" package consisting of five of the remaining House-passed bills — Defense, Labor-Health and Human Services-Education, Transportation-Housing and Urban Development, Financial Services and General Government, and National Security-State Department — plus a two-week extension of Homeland Security funding to provide time to address Democratic demands for reforms to Department of Homeland Security (DHS) enforcement procedures. If the House passes the package early next week (the House is scheduled to convene on Monday, February 2), it will minimize a partial government shutdown stemming from Senate modifications to the government funding package approved by the House last week.

Looking ahead: The appropriations package included some trade and health care add-ons, and there is continued speculation about how tax and other outstanding priorities could move sometime this year. Some House Republicans continue to expect a health care-focused second budget reconciliation bill, though the contours of such a bill and how it may be passed aren't clear. On Fox Business January 30, Ways and Means member Rep. Beth Van Duyne (R-TX) said: "I think with the next reconciliation bill, we're going to be looking at health care. You know, Obamacare has been a complete failure. We want to make sure that we've got other alternatives for it … This is what we need to get Congress back for, and this is what, hopefully what we're going to be working on next week."

OBBBA: 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."

Energy tax: On January 30, Senate Finance Committee member Catherine Cortez Masto (D-NV) introduced the "Lowering Home Energy Costs Act" to reinstate the following home energy tax credits and extend them until 2032:

• New Energy Efficient Home Credit
• Energy Efficient Home Improvement Credit
• Residential Clean Energy Credit

The three credits were repealed under the OBBBA, effective in the middle of this year for the New Energy Efficient Home Credit and the end of last year for the other credits. "Homeowners deserve the choice and opportunity to make their homes more energy efficient and lower their power bills for good," Senator Cortez Masto said.

CAMT: Asked during a January 28 Tax Analysts corporate alternative minimum tax (CAMT) webinar about IRC Section 174 R&D changes under the OBBBA pushing corporations into the CAMT, Deborah Tarwasokono, attorney-adviser at the Treasury Department, said Treasury is "hoping to issue guidance with respect to this issue." She did not provide any additional details. As has been widely noted, more companies may become subject to the CAMT because of tax benefits in the OBBBA, including making the R&D provision permanent (as IRC Section 174A) and providing the option to elect to retroactively deduct domestic research or experimental expenditures. Previously, Kevin Salinger, Deputy Assistant Secretary for Tax Policy at Treasury, said January 13 that Treasury and the IRS plan to issue one more notice on the CAMT before issuing a reproposed package of rules at the end of 2026.

Trump Accounts: On another OBBBA provision, Trump Accounts, President Trump said January 28 during an event at Mellon Auditorium in Washington, "Under this program, the U.S. government will automatically create a tax reinvestment account for every newborn American child, something that nobody really would have even thought of. There were some brilliant people that thought of it for a long time … The size and scale of this wealth will dwarf all government programs ever created to benefit America's youth." Treasury hosted a full-day summit January 28 to highlight the launch of Trump Accounts, the tax-advantaged savings/investment accounts created by the OBBBA that parents, guardians, employers and others can establish for eligible American children under 18 to help build long-term savings, including a government seed contribution for certain newborns.

"The summit showcased major corporate commitments and philanthropic contributions from America's leading companies, each pledging to match seed funding, broaden employee participation, or develop innovative channels for account growth. This pro-family initiative will help millions of Americans harness the strength of our economy to uplift the next generation," Treasury said in a news release. "Through Trump Accounts, our President is putting the American Dream within reach of every citizen, no matter the circumstances of birth," said Secretary Scott Bessent.

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."