Washington Update: Funding Fights, Regulatory Debates, and a Crowded Policy Agenda

Information provided to members by OGR.

Washington enters the week of Jan. 12 amid a convergence of major policy debates, political tensions, and high-stakes negotiations. As appropriators work to meet a Jan 30 government funding deadline, Congress is advancing FY 2026 spending packages against a backdrop of heightened controversy around health care, war powers, digital assets, and immigration enforcement.
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Lawmakers are making progress on bipartisan, bicameral “minibus” appropriations packages, with the House and Senate each advancing multi-bill funding measures. A final minibus, expected to include Defense, Labor-HHS, and Transportation-HUD, remains under negotiation. However, disagreements surrounding the Homeland Security funding bill, intensified by recent events involving ICE, make it increasingly likely that at least one funding bill will require a short-term continuing resolution.

Beyond appropriations, congressional committees are preparing for action on several major policy priorities later this year, including surface transportation reauthorization, digital assets market structure legislation, and a new farm bill. At the same time, the Senate is navigating debates over health care subsidies, war powers related to Venezuela, and advancing crypto market structure proposals through key committee markups.

The House returns this week facing continued challenges with a narrow majority, while leadership works to advance trade legislation, workforce-related proposals, and the next appropriations package. Committees are also beginning early work on transportation policy and broader affordability initiatives.

​This post provides a high-level overview of Congress this week. IPA members receive the full OGR Big Picture analysis, including detailed legislative outlooks, political risk assessments, and implications for the payments industry.

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