Lawmakers Gear Up for Critical Legislative Challenges After Elections

As the November elections approach, lawmakers on Capitol Hill are bracing for a busy agenda filled with crucial deadlines and pressing issues. Among the top priorities are preventing a federal government shutdown and addressing the debt limit, both of which require immediate attention after the elections conclude.

The November elections are significant, as they will determine control of the White House and both chambers of Congress, potentially reshaping the political landscape. This uncertainty will play a critical role in how lawmakers tackle upcoming challenges. The dynamics of Republican leadership in the House and Senate will also influence legislative negotiations and outcomes.

Following the elections, funding the government will be a primary focus. Lawmakers face a December 20 deadline during a lame-duck session, a period that begins after the elections but before the newly elected Congress takes office. This timeframe raises questions about how to avert a holiday shutdown. The outcome of the elections will dictate the leverage House Speaker Mike Johnson and other leaders possess in budget discussions.

Additionally, there is mounting pressure for Congress to pass disaster relief funding following Hurricanes Milton and Helene, which have caused extensive damage across the Southeastern U.S. With the Small Business Administration’s disaster loan program already depleted, swift action is necessary to provide assistance to affected communities.

Looking ahead, a new Congress will convene in early January 2025, where lawmakers will be faced with addressing the reinstated federal debt limit on January 2. This situation presents a significant challenge, as raising the debt ceiling is essential for the government to meet its existing financial obligations.

Once the debt limit is reinstated, the Treasury Department can implement “extraordinary measures,” utilizing available cash to delay a potential default. However, predicting the exact timing of the “X date”—when the U.S. would be unable to fulfill its financial commitments—is complex. Historically, lawmakers have waited until the last minute to address the debt limit, which adds to the uncertainty.

Fiscal conservatives are expected to use the debt ceiling negotiations as leverage to push for spending cuts and fiscal restraint, particularly if Republicans gain traction in the elections. Both parties are eager to avoid a default, which could have catastrophic economic implications, but the political maneuvering around the debt limit can make resolution challenging.

“Congress thrives on deadlines and operating at the last minute,” said Shai Akabas, executive director of economic policy at the Bipartisan Policy Center. He noted that the unpredictability of the X date adds another layer of complexity to an already tense situation.

In addition to funding and debt limit issues, lawmakers will also prioritize passing the National Defense Authorization Act (NDAA) for fiscal year 2025. The House and Senate have drafted their own versions of this critical legislation, which outlines policy and spending priorities for the Department of Defense. Reconciling these two measures will require negotiation to achieve a final version that can garner support from both chambers.

Moreover, Congress will need to renew essential agriculture policy by the end of the year. The farm bill, which establishes food and agricultural policies, typically undergoes renewal every five years. After a one-year extension of the 2018 farm bill, lawmakers must act to reauthorize key programs before funding expires on December 31.

The expiration of provisions from the Tax Cuts and Jobs Act of 2017 also looms on the horizon. With over $3.4 trillion in individual income and estate tax cuts set to expire at the end of 2025, negotiations over tax policy will be a significant issue for the incoming Congress and administration.

As lawmakers prepare to return to Washington after the elections, the pressure to address these pressing matters will intensify. A successful outcome will require strategic negotiations and bipartisan cooperation, especially in an environment marked by potential shifts in party control. With critical deadlines approaching, the upcoming lame-duck session promises to be a decisive period for Congress, setting the stage for the legislative priorities of the new year.