Congress returns to work today for a three-week sprint to wrap up legislative work and prepare for the start of the 119th Congress. The goal is to finish up by December 20, 2024, and the next Congress will start work on Friday, January 3, 2025.
 
Before the curtain closes on this Congress, there remain a few must-pass bills that lawmakers need to address before adjournment, including funding government operations for the current fiscal year (FY). The government is currently funded through December 20. A year-end catch-all spending bill that closes out work on discretionary funding for the full FY 2025 appears increasingly unlikely. House Speaker Mike Johnson (R-LA) hopes to clear another temporary funding bill (i.e., a continuing resolution (CR)) that carries forward spending into the first quarter of 2025. Doing this would allow the incoming Republican majorities in both chambers and President-elect Trump to dictate final spending levels for the last six months of FY 2025.
 
It's also possible that Republicans take a countervailing approach and work to finish the FY 2025 funding bill (or bills) before adjournment so the issue doesn't distract from their plans to advance a tax and budget reconciliation bill in early 2025.
 
The other major unfinished must-pass legislative package is the annual National Defense Authorization Act (NDAA). It's always a behemoth and always passes, typically with strong bipartisan support. That makes it an attractive vehicle for potential add-ons, but the bar is high in terms of attaching contentious issues. Clear, strong, and near-universal bipartisan support is almost always needed before adding an unrelated item to the NDAA.
 
Another issue that Congress may address or extend in the next three weeks is a farm bill reauthotization. The last five-year farm bill was enacted in 2018 and expired in September 2023 and several extensions have been enacted since. The GOP sweep makes it more likely that Republicans will back another temporary extension, giving them more control over the final product next year.
 
As negotiations on remaining issues continue behind the scenes, Senate Majority Leader Chuck Schumer (D-NY) is expected to run a slate of judicial nominations to the Senate floor for confirmation votes before Democrats lose control of the Senate.
 
With so much to do, tax policy has been mostly an after-thought in this lame duck session, at least in terms of what can be accomplished this year. Bright spots include the United States-Taiwan Expedited Double-Tax Relief Act (H.R. 5988) for potential inclusion in the NDAA, according to press reports. Disaster relief funding with related tax provisions is another issue that could hitch a ride on a must-pass year-end bill. Beyond that, tax discussions in Congress are almost exclusively about 2025. #TaxTake

Upcoming Speaking Engagements and Events

Marc will speak at the University of Texas School of Law 72nd Annual Taxation conference on December 4 and the BlueCross BlueShield 2024 National Tax conference on December 5.

Loren will speak the TEI New York 61st Annual Tax Symposium on December 5.

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