With both chambers of Congress having elected their leaders for the next Congress, focus now turns to the lame duck session. Of most importance is what Congress will do with the 12 annual spending bills set to expire December 20th. House Speaker Mike Johnson (R-LA) has stated he wants to pass a continuing resolution until March, at which time Republicans can have more influence writing the annual spending bills. But other Republicans want to complete their work now and fear a March spending fight would distract from the first months of the new Trump Administration. House Majority Leader Steve Scalise (R-LA) suggested passing a year-long continuing resolution (CR), effectively punting on the entire FY25 budget. As of yet, President-elect Trump has not publicly weighed in. If they do ultimately choose to pass their spending bills before the end of the year, they need a bipartisan agreement on the topline spending levels, the split between defense and non-defense spending, and subcommittee allocations very soon.

In addition to the annual appropriations bills, Congress must consider an emergency supplemental appropriations bill. Following the devastation of Hurricanes Helene and Milton this autumn, the Disaster Relief Fund is quickly running out of cash to aid in the recovery process. Last week, President Biden sent to Congress a list of roughly $100 billion in spending for various emergencies across the nation. Though each request is intended to respond to natural disasters, congressional Republicans are not entirely supportive of all requests. They are preparing to deny funding for many of the requests. However the emergency supplemental is structured, it is poised to pass before the end of the year. They will either attach it to an FY25 regular appropriations bill, a CR, or a National Defense Authorization Act. Republicans continue to assess their plans for next year’s reconciliation powers. As a reminder, under unified government, each year, the governing party has one opportunity to pass a reconciliation bill addressing spending or revenue matters that can bypass the traditional 60-vote threshold in the Senate and pass with a simple majority. The current Republican focus is on using the reconciliation bill in early 2025 to address tax cuts. But health programs, health financing, and related matters will be in the mix for the reconciliation package. Read more here.