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Congress returns with packed 2026 agenda as healthcare and funding deadlines loom

- - Congress returns with packed 2026 agenda as healthcare and funding deadlines loom

January 2, 2026 at 4:16 AM

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Senate Majority Leader John Thune, R-S.D., heads to a closed-door meeting with fellow Republicans, at the Capitol in Washington. (J. Scott Applewhite/AP)

Millions of Americans are now facing higher healthcare premiums or may abandon their plans altogether after expanded premium tax credits officially expired at the start of 2026.

The lapse in subsidies is setting up a major political battle on Capitol Hill as lawmakers return from their holiday break with healthcare affordability taking center stage ahead of the midterm elections.

Democrats are positioning themselves to force Republicans to confront their longstanding struggle to unite around a comprehensive healthcare plan. President Donald Trump has repeatedly expressed his desire to repeal and replace the Affordable Care Act, also known as Obamacare.

RELATED STORY | Millions face higher healthcare costs as ACA subsidies end January 1

Republicans floated numerous proposals at the end of 2025 but failed to reach consensus on any potential solution before leaving Washington for the holidays.

"We have time constraints. We have different philosophies. There are different ideas, you know, Senator Crapo and Cassidy have a plan. Senator Paul has a plan. Marsha Blackburn has a plan. Susan Collins and Bernie Moreno have a plan, and that's just on the Senate side," Sen. Cynthia Lummis, R-Wyoming, said.

For Democrats, the Republican inaction creates potential political opportunity in the midterms.

"Well, it's everything is always a campaign issue around here, but this is so heartbreaking because people who had no control over these premium increases are going to suffer," Sen. Peter Welch, D-Vermont, said.

While the healthcare subsidy deadline has passed, lawmakers face another critical deadline with government funding set to expire on January 30. Without action to pass another stopgap measure or the remaining nine government funding bills, the government could face a partial shutdown on January 31.

Congress also has proposals to ban stock trading for members on their agenda, an issue that has drawn bipartisan support.

RELATED STORY | Trump issues first vetoes of second term, targeting bills backed by GOP allies

Republicans may attempt to pass another reconciliation bill, which would allow them to make changes to taxes or government spending without Democratic support, similar to the One Big Beautiful Bill Act.

However, lawmakers will have limited time to accomplish their goals. In addition to the annual August recess, they are scheduled to be on break for nearly the full month of October to campaign for the 2026 midterm elections.

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Source: “AOL Breaking”

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