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DC Tax Flash: Midnight Funding Lapse Looms Over Virus Relief Talks

Tax Alert

With negotiations on a virus relief bill still underway, Congress is considering a two-day funding bill to avoid a partial government shutdown that otherwise will start at midnight tonight.

The House is voting on the temporary funding measure at this moment. The Senate could take it up soon thereafter, but some may oppose waiving it through without debate in the hopes of keeping pressure on negotiators working to finalize a virus relief package. Party leaders in Congress have vowed to stay in session until they find agreement on virus relief that would be added to a longer-term funding bill that covers the rest of FY 2021. Also in the mix is a subset of extensions of various temporary tax provisions that are set to lapse at the end of the month.

Speaking on the floor today, Senate Majority Leader Mitch McConnell (R-KY) was upbeat about the progress of negotiations. "I am even more optimistic now than I was last night that a bipartisan, bicameral framework for a major rescue package is close at hand," he said.

New House Taxwriter Named

When Congress reconvenes next year, the House Ways and Means Committee will welcome Congresswoman Stacey Plaskett (D-VI) to the panel. As a Delegate representing the Virgin Islands, Plaskett can vote in committee and as a member of a conference committee. However, votes by Delegates are not counted on the House floor. A statement by Ways and Means Committee Chairman Richard Neal (D-MA) announcing Delegate Plaskett's committee assignment is posted here.


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